KUALA LUMPUR: The RM3.5 billion D’Rapport Residences condomium project on the prime land of Ampang Hilir here, which has been stalled since 2010, has finally kicked off, following a foundation-laying ceremony held yesterday.
The project is now expected to be completed in mid-2017 with the award of a construction job worth RM1.065 billion by property developer Acmar Group to China Railway Engineering Corp (M) Sdn Bhd (CREC) and Bismark Construction & Engineering Sdn Bhd.
On Wednesday, CREC also signed an agreement with Malaysia Building Society Bhd (MBSB) to secure a RM476 million Islamic financing facility to finance construction of the project.
D’Rapport Residences comprises five blocks of 38-storey condominiums with a podium for recreational and sports facilities and car parks.
The total gross development area is in excess of 4 million sq ft.
CREC and Bismark will be paid via a RM476 million financial guarantee (issued by Sabah Development Bank Bhd) payable upon the issuance of the certificate of practical completion for the project.
The balance RM589 million will be paid via units in the project.
Present at the signing ceremony on Wednesday were Acmar Group founder Teh Leh Teck, group chairman Datuk Abd Samad Maharudin, group managing director Datuk Steven Tee and group executive director Johnson Tee. Also present were Selangor Menteri Besar Mohamed Azmin Ali and China’s ambassador to Malaysia Huang Huikang.
The project was originally launched in May 2008 as a profit-sharing venture with the Selangor government via Permodalan Negeri Selangor Bhd, but it stalled in 2010 after experiencing problems with its previous main contractor.
The five blocks are only the first phase of the project, which covers less than 4ha of the total 24ha that belongs to Acmar Group at the site.
The first phase will see the towers marking its presence at the embassy enclave of Ampang. The remainder of the plot will be developed later with another residential high-rise comprising six towers, a commercial/retail mall and an office complex.
This article first appeared in The Edge Financial Daily, on February 13, 2015.