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Bukit Bintang City Centre to have 50% bumi participation

KUALA LUMPUR: UDA Holdings Bhd expects the Bukit Bintang City Centre (BBCC) project, with a gross development value (GDV) of up to RM10 billion, to have 50% participation by bumiputera contractors.

Its chairman Datuk Johari Abdul Ghani said the participation of bumiputera contractors in the project is in line with the Economic Transformation Programme agenda, which seeks to have more bumiputeras involved in mega projects.

“However, we will ensure that only qualified bumiputeras are involved in the project and it is not handed over to a third party,” he told a media briefing yesterday.

The project cost for the redevelopment of the Pudu jail site is estimated at RM5 billion.

Johari said UDA had also set up a consortium with another two partners — Eco World Development Group Bhd, which holds 40% equity, and the Employees Provident Fund (EPF) with a 20% stake.

He said UDA had evaluated proposals from three companies and identified the potential developer based on financial performance and experience in mega projects.

“The EPF is involved in the Battersea Power Station development project in London, and the same goes with Eco World, which has also participated in a consortium project before.

“We cannot afford to fail in this project, and that is also the reason why we took a number of years to conduct a study before starting the project,” he said.

On rumours of direct negotiations with Eco World, he said local companies had submitted proposals for the project, but Eco World was selected based on the specific requirements and its ability to handle huge projects.

The five million sq ft development will comprise retail malls, an entertainment hub, strata offices, super skyscraper signature tower and serviced apartments.

Asked about the impact on UDA’s business, Johari said the rental income would be one of the major contributors to the group’s earnings.

“The income from BBCC will be channelled to build affordable houses in Kampung Baru,” he said.

The project’s timeline is expected to be about five to seven years, and upon completion the recurring income from rental is projected to be about RM160 million annually. — Bernama


This article first appeared in The Edge Financial Daily, on June 25, 2014.

 

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