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Wednesday, 27 August 2014

DBKL acquisition of Plaza Rakyat poses many questions

DBKL contractors were seen repairing the Plaza Rakyat bridge on Wednesday.

DBKL contractors were seen repairing the Plaza Rakyat bridge on Wednesday.

BUYERS of the long delayed Plaza Rakyat project want Kuala Lumpur City Hall (DBKL) to prove their commitment in reviving and completing the project as well as to consider their wishes.

“We have been waiting for this project a very long time. In fact, while waiting for it, some buyers have already passed away without ever knowing the fate of their purchase,” Stephen Yong, a buyer, said.

He purchased two units as a retirement plan for he and his wife.

“We run small businesses — she runs a salon and I a food court stall. We had bought the units in hopes of renting them out when we retire,” he said.

Another buyer who only wanted to be known as Danny said the buyers had initially been excited about Ivory Properties Group Bhd developing the project.

“From what we had read, it sounded like a good deal with talk of compensation for us too.

“Currently, DBKL is in the midst of deciding on a new developer for the project but nothing has been said about us. We are in the dark and how do we know our interests are being looked into?” he said.

Earlier this month, Ivory filed with Bursa Malaysia that Ivory Place Sdn Bhd and Plaza Rakyat Sdn Bhd (PRSB) could not come to an agreement and thus, had terminated the acquisition and rehabilitation agreement.

PRSB had completed about 30% of the project before experiencing financial problems during the 1998 financial crisis, forcing the developer to abandon it.

StarMetro recently highlighted several issues at the site, including a rickety connecting bridge that is currently being fixed, mosquito breeding spots and overall structural integrity concerns.

DBKL is expected to announce a new developer for the project next month after the takeover.

This is following the arbitrator’s decision in early July for the local authority to terminate the joint-venture agreement with the PRSB with the condition it pays RM200mil to the developer for the portion that had already been built as well as bank loans with interest.

Tags / Keywords: Central Region , Family Community , Plaza Rakyat , buyers , DBKL


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