Perbadanan Wakaf Selangor (PWS) and Nada Sepakat Corporation (Malaysian) Sdn Bhd (NSC) have made an important step towards unlocking the value of wakaf or endowment land in Selangor.
Recently, the two organisations signed a joint-venture agreement to develop two adjacent parcels of wakaf land measuring 2.3ha in Shah Alam. The housing project that will be developed at the site is expected to have a gross development value of RM40mil.
PWS is a corporation established as a coordinating body to undertake property development of wakaf properties belonging to the Selangor Islamic Council (MAIS) as set out in the Establishment of Wakaf Selangor 2011 order.
Nationally, PWS is the first body corporatised by a state Islamic council to specifically coordinate the commercial development of wakaf lands. It is estimated that wakaf assets in Selangor are valued up to RM80mil consisting of wakaf premises, people’s bazaars and 114 parcels of land.
As of August last year, a total land area of 366ha had been successfully registered to MAIS as the single trustee of wakaf estates in Selangor.
NSC, a niche property development company based in Kuala Lumpur is collaborating with various state Islamic councils to release the value of wakaf lands in response to the nation’s call to commercially develop wakaf lands for property development.
In the JV agreement with PWS, the company will develop 40 units of semi-detached houses on each of the two lots on the land that was donated as a religious endowment (wakaf) by the late Abdul Rahman Ali to MAIS for the benefit of Surau Al-Falah Telok Pulai.
PWS and NSC are combining their resources to unlock the value of wakaf lands in Selangor and generate income through a collaboration that will solidify the institution of wakaf to help improve the socio-economic status of Muslims.
The signing parties will apply the concept of “Ijarah” or lease in the implementation of development projects for the land. Through the concept of Ijarah, the land to be developed continues to remain the property of MAIS and only its benefit is transferred.
Under the wakaf land development project, NSC will bear the cost of development and is responsible for marketing the product. The site consist of two lots each measuring one hectare and is located in a high-growth area adjacent to the established residential districts of Kota Kemuning, Alam Impian and Berjaya Park.
There are already established amenities within a 5km radius of the site, including a golf course, commercial centres, several hypermarkets. Two shopping malls are also being developed in the area.
Access is also convenient through KESAS Highway, Kemuning-Shah Alam Highway (LKSA) and Elite connecting the area to the larger Klang Valley and airport.
NSC will develop an exclusive community totalling 80 units of 1½-storey semi-detached houses with built up areas of 1,600 sq ft. Each of the two sites will have 40 units. The project is expected to be completed in 2016.
The semi-detached houses will be marketed as affordable homes priced at RM500,000. In compliance with MAIS restrictions for wakaf land, the houses will only be sold to Muslims.
PWS is confident its partnership with NSC to develop the site is the best strategy to maximise the benefits of wakaf lands and generate sizeable income for the land’s beneficiary. The synergistic partnership with NSC provides PWS the platform to leverage on NSC’s experience to further develop wakaf lands in Selangor.
When the residential development is completed, it is expected to enhance the diversity and overall value of properties within its vicinity and augurs well for the current and upcoming property projects in the area. The PWS – NSC JV agreement is expected to be the template and catalyst in the future development of wakaf lands in Malaysia.