First sub-MC in Malaysia to be formed

PETALING JAYA (Feb 17): The first subsidiary management corporation or sub-MC in Malaysia is set to be formed at the 1 Mont’ Kiara mixed-use stratified development. The proposal to form the sub-MC by the 1 Mont’ Kiara Dan Kiara 2 Management Corporation has received the required agreement from two thirds of the aggregate share units in the development, thus paving the way for the formation of the sub-MCs. The poll result was made official at an EGM held on Feb 5 at the 1 Mont’ Kiara mixed-use stratified development.

Sub-MCs were introduced under the Strata Management Act 2013 to address the issue of the maintenance of common property in a mixed-use stratified development.

According to the licensed registered property manager of the development, Burgess Rawson Malaysia, the mixed development currently comprises four development components, namely:

1. Menara 1 MK – designed, built and completed in 2010 with two wings, namely the Premier Suite wing and the Office Suite wing. The Premier Suite is a 34-storey office wing with 30 parcels while the Office Suite are in a 29-storey wing with 156 parcels;
2. Wisma Mont’ Kiara – a 19-storey office block completed in 2010 comprising one en bloc parcel;

3. 1 Mont’ Kiara – a 4-storey retail mall completed in 2010 with car parks in the basement and upper levels of Kompleks 1 Mont’ Kiara all in one en bloc parcel; and

4. i-Zen Kiara II – a 33-storey serviced apartment block completed in 2006 with 238 residential and six commercial parcels.

There will be three sub-MCs formed. “The first sub-MC will be managing i-Zen Kiara II, the second for Menara 1 MK and the third will be for Wisma Mont’ Kiara and 1 Mont' Kiara.

“We will submit the minutes of the EGM and apply for a certificate of acceptance of the Comprehensive Resolution from the Commissioner of Buildings Kuala Lumpur,” Burgess Rawson Malaysia group managing director Wong Kok Soo told EdgeProp.my.

“The three sub-MCs will come into existence under section 17A of the Strata Titles Act upon the issuance of the certificates of establishment of the subsidiary management corporations by the Director of Land and Mines Wilayah Persekutuan,” he added.

According to Wong, the proprietors of the residential component in i-Zen Kiara II wanted a sub-MC to be formed so they could be insulated from any liabilities arising from the commercial components, and to have independent control of their own accounts and limited common property.

Similarly, the proprietors of the office component in Menara 1 MK, as well as the two en bloc parcels of 1 Mont' Kiara and Wisma Mont’ Kiara also wanted the same.

“Furthermore, it is important to Wisma Mont’ Kiara to safeguard its exclusive use of the annexed service lift by incorporating the said lift as a limited common property of its sub-MC whereas, for 1 Mont’ Kiara, it is vital to safeguard its exclusive use of the front drop off area and valet parking for its mall customers, as well as the downloading area at the side of the building for its retail tenants by incorporating such areas as limited common property of its sub-MC,” Wong elaborated.

Getting the required consent of two thirds of the aggregate share units to form the sub-MCs was no easy task as a number of purchasers had yet to be registered and take up their strata titles while some of those who had registered were not entitled to vote because they had arrears in their maintenance charges, said Wong,.

“The registered proprietors entitled to vote collectively held only 71% of the aggregate share units. For convenience sake, the EGM was held on the same day as the third annual general meeting on Dec 6. However, the timing was not right as a number of them had gone for holidays or overseas at that time of the year. Furthermore, some registered proprietors entitled to vote were apathetic and needed motivation from the management office before coming in to cast their votes,” he shared.

Burgess Rawson’s team of seven polling officers and assistants had sent emails and whatsapp messages, and made daily calls to registered proprietors who were eligible to cast their votes during the 60-day voting period.

“The mission was only accomplished when two proprietors returned from overseas to cast their votes three days before closing. The last proprietor flew in from London to cast her vote on Sunday (Feb 4) before the counting took place the following day. It was certainly a very tight race against time,” he said.

Once the sub-MCs are formed, Wong noted that each of them will have independent control, management and maintenance of its own limited common property (LCP) and the services therein as well as full control over each of their own funds under its own independent maintenance account and sinking fund account.

“Each sub-MC will have its own independent operating budget and capital expenditure for its own LCP and is entitled to any third party income arising from it,” said Wong.