PUTRAJAYA: Federal Territories Minister, Khalid Abdul Samad said that Plaza Rakyat (Jalan Pudu) and the Hyatt Hotel (Jalan Sultan Ismail) will be redeveloped since both projects had been left idle for more than 25 years.
The Plaza Rakyat project, left abandoned since 1992, is a mixed-use skyscraper complex comprising of an office tower, a condominium, a hotel and a large-scale shopping centre. It is said that the construction was stalled due to the 1997 Asian financial crisis, causing the developer to put the project on hold due to funding problems.
In recent news, a 96-storey skyscraper and two 81-storey towers are revealed in an earlier development proposal submitted to DBKL.
The redevelopment of Plaza Rakyat will be taken over by a new developer, Profit Consortium Sdn Bhd, with the development order to be released later this year after the developer settles certain charges set by the Kuala Lumpur City Hall, as reported by The Edge.
Profit Consortium bought the partially completed Plaza Rakyat project in 2015. Comprising five parcels of leasehold land totalling 29.64 acres, it was purchased from DBKL for RM700 million.
On the other hand, redevelopment of The Hyatt Hotel project on Jalan Sultan Ismail is expected to be started by the original developer. The project was initiated in 1993 and then abandoned before a series of amendments were made in 1998, 2003 and 2013. However, the project still remains idle today.
Khalid said some requirements were set to ensure the projects were not abandoned again while at the same time the background and financial capabilities of the contractors involved were also examined.
“So we have no reason to be skeptical of their capabilities. If they still fail, the developers will lose hundreds of millions of ringgit. We will help them by providing some flexibility and incentives, including a 50% discount on the development charges,” he said.
Despite the property market slowdown, the revival of abandoned projects in Kuala Lumpur is proof that development in the city remains strong.
JALAN PUDU MARKET INSIGHTS via Property Advisor
Median Price: RM21.6 million
Median Rate PSF: RM451.25/sq.ft.
Median Price: RM829,170
Median Rate PSF: RM3,852/sq.ft.
Median Price: RM2.525 million
Median Rate PSF: RM1,054/sq.ft.
JALAN SULTAN ISMAIL MARKET INSIGHTS via Property Advisor
Median Price: RM1.95 million
Median Rate PSF: RM1,118/sq.ft.
Median Price: RM1.40 million
Median Rate PSF: RM 1,232 /sq.ft.
Median Price: RM1.84 million
Median Rate PSF: RM 1,630 /sq.ft.
Median Price: RM5.60 million
Median Rate PSF: RM 2,753 /sq.ft.
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