Damansara Realty’s PPA1M project in Putrajaya cancelled

KUALA LUMPUR (Feb 27): Damansara Realty Bhd (DBhd) said Putrajaya Corp has cancelled a project to build 1Malaysia Civil Servants Housing (PPA1M) units and related commercial components in Precinct 5, Putrajaya.

DBhd said the cancellation was due to the government’s move to unify the development of affordable homes under the ministry of housing and local government.

The federal government recently formed a National Affordable Housing Council, grouping five public housing agencies together, including PPA1M, which oversees affordable housing for civil servants.

In a filing with Bursa Malaysia yesterday, DBhd said its wholly-owned subsidiary Damansara Realty (Johor) Sdn Bhd (DRJ) received the notice of termination from Putrajaya Corp yesterday concerning the project, which spans 11.9 acres (4.8ha).

In a separate statement, DBhd group managing director Brian Iskandar Zulkarim said it respects the decision by Putrajaya Corp and remains optimistic about the group’s plans regarding any development or collaboration with both government and private entities.

On Nov 30, 2015, DRJ inked the agreement with Putrajaya Corp to develop the project, which comprises 1,350 residential units and 45 commercial units, at a gross development cost of RM467.3 million.
Brian Iskandar said DBhd is turning its focus to specialised development projects in hospital planning, development and construction, combining the strategic strengths of its property development and project management and consultancy segments.

This article first appeared in The Edge Financial Daily, on Feb 27, 2019.

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