Yayasan Wilayah Persekutuan plans to exit from property-related ventures: Report

KUALA LUMPUR (Aug 10): Yayasan Wilayah Persekutuan (YWP) will move away from property-related ventures “once the jobs in hand are completed”.

“In January, we decided to no longer be involved in property,” YWP CEO Zaizalnizam Zainun said in a report by The Edge Malaysia.

YWP currently has five property development projects on a joint-venture basis (the foundation is the landowner while the partner builds and sells the assets).

The five projects (sitting on a total of 29.65 acres) will bring in profits of RM137.88 million over the next half decade.

YWP’s joint-venture partners include Panorama Benua Sdn Bhd, Lakaran Ceria Sdn Bhd, Syarikat Kontrektor Muda Jaya Sdn Bhd and Aspire Causeway Sdn Bhd.

One of the projects is the “controversial” Taman Rimba Bukit Kiara project by Memang Perkasa Sdn Bhd.

Not many people have heard of YWP but the dispute involving Taman Tun Dr Ismail residents over the project has put the foundation in the public eye and scrutiny.

“The current projects are expected to bring in money for the next four to five years. There will be no more cash flow from property development after that. We are trying to get new businesses,” Zaizalnizam told the weekly.

He also revealed to the publication how YWP conducted its property-related business – a “developer would identify a piece of land for development and would then approach YWP with the intention of jointly developing the site should the land be obtained”.

YWP would then make an application with the Department of Lands and Mines Wilayah Persekutuan Kuala Lumpur to purchase the land.

“No preference [is given] to YWP, if we get the land, we proceed and sign the joint venture. In all circumstances, YWP is the landowner and the joint-venture partner is the developer,” he added.

After the JV is finalised, “YWP receives payment from the developer on a staggered basis”.

Zaizalnizam told the business publication that “YWP started to rake in RM10 million to RM15 million a year from the property division and once the money started to come in, many more people were able to benefit from its charitable programmes”.

“Prior to 2011, most of YWP’s funds came from small businesses like billboard and parking operations. Our recipients were small in number, about 100 students.

“The biggest jump in contribution from property was in 2017,” he added.

According to the report by the weekly, “YWP’s property development venture began to grow around 2011 during the time of former Federal Territories and Urban Well-being Minister Datuk Seri Utama Raja Nong Chik Raja Zainal Abidin”.

“It [property development] grew like other foundations in other states. But maybe during my time I gave some priority to giving land to YWP to avoid many lobbyists with connections who apply for land,” Raja Nong Chik told The Edge.

Apart from Malton Bhd (they are involved in the Taman Rimba Kiara development via Memang Perkasa), “other listed entities linked directly or to individuals who are also shareholders of listed companies that had or have dealings with YWP are Ekovest Bhd, Sunway Bhd, Tadmax Resources Bhd and Federal International Holdings Bhd”, wrote the business publication.

In a related report by the weekly, it is revealed that YWP has “also purchased assets and sold land for profit”.

The report stated that two parcels of land that were purchased by YWP from DBKL that were later resold:  Lot 1248 Jalan Imbi, bought for RM21.308 million and sold to Lembaran Beruntung for RM30 million; Jalan Raden Tengah (Bandar Baru Sri Petaling) bought for RM30.48 million and sold to I-Con Empire Sdn Bhd for RM35.48 million.

The foundation was also reported to have purchased at least three other parcels from the Department of Lands and Mines Wilayah Persekutuan Kuala Lumpur and later “alienated to other parties ahead of developing the land”.

JV partner Wealthy Peninsular Sdn Bhd paid YWP RM7.3 million for Lot 1775 Jalan Tuanku Abdul Rahman, while two other parcels were sold to  Austral Meridian Property Sdn Bhd (486  Jalan Peel, Cheras for RM31 million) and Ekovest Land Sdn Bhd (82 Off Jalan Pahang for RM 10 million).

Going forward, YWP therefore plans to expand two of its other existing businesses of billboard and parking management.

“I need to crack my head to look into the possibility of finding [new avenues to make] money for YWP,” Zaizalnizam said.