KNU tenants given until end of the year to move out or risk legal action

UDA’s redevelopment plans for KNU feature service apartments, offices and retail lots.

UDA Holdings Bhd will not delay its redevelopment plans for Kompleks Niaga Utama (KNU) in Bangsar despite protests by some of the remaining tenants over their eviction.

The traders had demanded RM100,000 per lot as compensation and a six-month period to move out through a memorandum issued by the Federal Territories Malaysia Malay Network.

UDA Holdings Bhd senior director Datuk Rizuan Ab Hamid said they will compensate the traders by bearing the cost of moving out and storage, if necessary.

He also said traders were offered new lots in Pudu Sentral and at Pertama Complex.

Currently, there are only 13 tenants occupying 18 lots out of the 86 available lots at KNU.

“The number of traders at the building has been dwindling since 2011 when we had more than 50 tenants,” Rizuan said, adding that about five of the remaining tenants had agreed to move out.

“They claim the moving-out notices were issued out of the blue and they need more time, but we have had meetings with them about this since last year.

“However, we are willing to give them until end of the year to move out.

“Next year, we may decide to go through the proper legal process to evict any remaining tenants,” he said.

Rizuan said there had been claims that UDA wanted the project to be carried out quickly in order to benefit certain contractors.

“We are a national property development agency and our tenders are done openly.

“We also have an old debt, which was brought over before UDA was fully incorporated in 1996, and have to pay it.

“We do not receive any grants, and as such, our only source of income is by doing well in business,” he said.

He also said that KNU was run down and old, making it an eyesore compared to the modern and prestigious structures surrounding it.

“The rental we collect from the traders starts from RM636 a month per lot and the total collected is only about half of what is needed to upkeep the entire place.

“The rental is well below market rate, which is between RM3,000 and RM4,000 so the traders should be thankful,” he said.

The redevelopment plans for KNU will feature service apartments, offices and 12 retails lots.

“The current traders have the right of first refusal and we will offer them discounts such as free rental for the first month.

“However, the rental will be according to market rates,” he said.

The project, which has a gross development value of RM250mil, is expected to begin early next year and will be completed in 2019.

“We will not negotiate anymore so we hope the traders will accept our offer within a month,” Rizuan said, adding that they had received the development order for their plans.