Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on May 8, 2018

KUALA LUMPUR: S P Setia Bhd’s 50%-controlled unit will be undertaking a mixed development in Cheras for Kuala Lumpur City Council (DBKL) in exchange for ownership of 52.52 acres (21.25ha) of leasehold land in the area.

Retro Highland Sdn Bhd, in which Tradewinds Corp Bhd owns the other 50% stake, entered into a privatisation agreement with DBKL yesterday, said S P Setia in a stock exchange filing.

The Quality Sustainable People Housing (QSPH) project involves the construction of 3,971 residential units, 112 shops or stalls, a market and other public facilities.

In exchange for the development, DBKL will transfer 52.52 acres of leasehold land, free from encumbrances, to Retro Highland. The total value of the land is RM1.19 billion, based on the RM344.79 million construction of the first phase of the QSPH project, RM835.12 million for its second phase, and a RM14.99 million cash consideration, S P Setia said.

The property developer said a mixed development project is planned for the exchanged land, which will comprise residential and commercial components and is expected to have an estimated gross development value of RM11.03 billion with a development period of 11 years.

The QSPH development and exchange land are situated south-east of the Chan Sow Lin area and immediately east of the Cheras light rail transit station.

“The initial phases of the QSPH development 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,” S P Setia said.

The first and second phases are expected to take up to four years each to complete, resulting in an expected completion date in 2028, the developer added.

“The QSPH development and the proposed development are expected to be funded via bank borrowings and/or internally generated funds, the breakdown of which has not been determined at this point,” S P Setia said.

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