SP Setia JV plans RM11b project in Cheras

KUALA LUMPUR: SP Setia's Bhd 50% owned Retro Highland will undertake a public housing project for Dewan Bandar Kuala Lumpur (DBKL).

In return, it will be awarded a piece of land in Cheras where it will carry out a project with a gross development value (GDV) of RM11.03bil.

The property developer said on Monday Retro Highland – which is a special purpose vehicle for SP Setia and Tradewinds Corporation Bhd – had signed a privatisation agreement with DBKL.

The agreement is for the planning, design, construction, completion and commissioning of quality sustainable people housing project.

The project entails the construction of 3,971 residential units, 112 units of shops/stalls, a market and other public facilities. 

In return, Retro Highland will be awarded with 52.25 acres of leasehold land in Cheras to be used for mixed development. 

“The proposed development is expected to have an estimated GDV of approximately RM11.03bil with a development period of 11 years,” it said.

SP Setia said the expected development cost and profit of the proposed development are subject to various factors including amongst others, timing of launches, economic conditions, market demand, the actual number of units and types of property to be developed and pricing of units. These factors cannot be determined at this point, it said.

It said the development is a public-private strategic partnership undertaking. It added this was in line with the government’s intention to encourage the private sector to form partnerships with DBKL to undertake urban renewal initiatives under the KL Structure Plan 2020.

SP Setia said the development and exchange land were at the southeast of the Chan Sow Lin area in Kuala Lumpur and immediately east of the Cheras LRT Station. It is about  8km to Kuala Lumpur City Centre and 3km to Viva Mall and is located alongside Jalan Loke Yew.

The overall  development entails the renewal of 5,650 residential units. 

The initial phases of the development as part of the Privatisation Agreement will involve the renewal of the 3,971 units under Taman Ikan Emas cluster houses, Sri Melaka low cost flats, Sri Pulau Pinang low cost flats and long houses, Sri Johor low cost flats under the government’s public housing scheme, common facilities, shops, stalls and a market.

In exchange for the development, DBKL will transfer the exchange land, free from encumbrances to Retro Highland. 

The agreed value of the exchange and of RM1.19bil comprises the construction cost for phase one of up to RM344.79mil; construction cost for phase two of up to RM835.12mil.

There will also be cash consideration of RM14.99mil and if the construction cost of the  development is lower than the cost estimated for phase one and phase two, an additional cash consideration for the difference will be paid to DBKL accordingly.

The privatisation agreement with DBKL is for the planning, design, construction, completion and commissioning of quality sustainable people housing project.

The project entails the construction of 3,971 residential units, 112 units of shops/stalls, a market and other public facilities. 

In return, Retro Highland will be awarded with 52.25 acres of leasehold land in Cheras to be used for mixed development. 

“The proposed development is expected to have an estimated GDV of approximately RM11.03bil with a development period of 11 years,” it said.

SP Setia said the expected development cost and profit of the proposed development are subject to various factors including amongst others, timing of launches, economic conditions, market demand, the actual number of units and types of property to be developed and pricing of units. These factors cannot be determined at this point, it said.

It said the development is a public-private strategic partnership undertaking. It added this was in line with the government’s intention to encourage the private sector to form partnerships with DBKL to undertake urban renewal initiatives under the KL Structure Plan 2020.

SP Setia said the development and exchange land were at the southeast of the Chan Sow Lin area in Kuala Lumpur and immediately east of the Cheras LRT Station. It is about  8km to Kuala Lumpur City Centre and 3km to Viva Mall and is located alongside Jalan Loke Yew.

The overall  development entails the renewal of 5,650 residential units. 

The initial phases of the development as part of the Privatisation Agreement will involve the renewal of the 3,971 units under Taman Ikan Emas cluster houses, Sri Melaka low cost flats, Sri Pulau Pinang low cost flats and long houses, Sri Johor low cost flats under the government’s public housing scheme, common facilities, shops, stalls and a market.

In exchange for the development, DBKL will transfer the exchange land, free from encumbrances to Retro Highland. 

The agreed value of the Exchange Land of RM1.19bil comprises the construction cost for phase one of up to RM344.79mil; construction cost for phase two of up to RM835.12mil.

There will also be cash consideration of RM14.99mil and if the construction cost of the  development is lower than the cost estimated for phase one and phase two, an additional cash consideration for the difference will be paid to DBKL accordingly.