EPF to call tenders for township

KUALA LUMPUR: Tenders for the first phase of the Employees Provident Fund’s (EPF) RM50 billion township development in Sungai Buloh, Selangor, which was acquired from Malaysia Rubber Research Institute for RM2.28 billion in 2012, will be called next month.

Over 150 developers have submitted their credentials and applied for the opportunity to work alongside EPF’s wholly-owned subsidiary Kwasa Land Sdn Bhd, which is the master developer of the 2,330-acre (942.92ha) Kwasa Damansara, during the pre-qualification exercise.

“The vast tract of land has received overwhelming response from developers, making it a challenge for the Kwasa Land pre-qualification committee to limit the qualifying number to only 60 of the best,” said Kwasa Land managing director Mohd Lotfy Mohd Noh in a statement yesterday.

“We intend to work with the best and most experienced developers who are required to comply with our urban design guidelines as well as our high standards for creativity and promoting a safe city concept,” he added.

For starters, the master plan for the proposed Kwasa Damansara township, which is expected to generate a gross development value of RM50 billion over the next 20 years, has been presented to the Selangor government for its evaluation and approval.

“Upon obtaining the necessary approvals from the state authorities, the first parcel of 64 acres will be developed into a modern state-of-the-art town centre and transport hub in a partnership with Tier 1 developers,” said Lotfy.

Tier 1 developers are classified as large-scale companies with a paid-up share capital or shareholders’ funds of at least RM1 billion; Tier 2 developers are those with a paid-up capital or shareholders’ funds of at least RM300 million, and Tier 3 developers that are bumiputera companies with a paid-up capital or shareholders’ funds of RM1 million and above.

The proposed town centre will comprise 70% commercial and 30% residential components, with two mass rapid transit stations built within its confines.

“The successful partner in developing this town centre will be based on the merits of their design proposal and financial consideration,” said Kwasa Land.

In addition to the town centre, residential developments of 10 to 20 acres each will also be on a similar basis — be tendered out to Tier 2 and Tier 3 bumiputera developers.

The entire Kwasa Damansara township project will be developed into eight precincts, each to have its own urban design guidelines. Once completed, it is expected to house a population of 28,000 and support about 150,000 people.

“Based on this structural division of land, Kwasa Land is projecting land sales revenue of RM11 billion for 1,350 acres to public limited companies, government-linked companies, private developers as well as bumiputera developers,” it said.

Kwasa Land said it is also likely to invest in equity participation in most of the precinct areas to generate greater returns.

When contacted yesterday, property consultants told The Edge Financial Daily that Kwasa Damansara is expected to gain vibrancy faster than existing townships like Putrajaya and Cyberjaya.

“Kwasa Damansara should fast become a vibrant township because it is already located within an existing development belt (Sungai Buloh). It isn’t something that is being carved out of a countryside,” said Knight Frank (M) Sdn Bhd managing director Sarkunan Subramaniam.

“When Putrajaya and Cyberjaya first came about, they were carved out of estate land. It is only now that you can see activities there picking up.

“I think it [Kwasa Damansara] holds tremendous potential,” he added.

While Zerin Properties chief executive officer Previndran Singhe (pic) agrees on the positive financial potential of the proposed township development, he said the 70:30 commercial to residential components ratio is skewed towards commercial developments.

“I do not think it should be monetised for commercial purposes.

“It should have been used to build more affordable housing as the EPF is the people’s pension fund,” he said.

This article first appeared in The Edge Financial Daily, on January 16, 2014.