Khalid says Dijaya deal not finalised

SHAH ALAM: The Selangor government said it did not err on caretaker government principles over the land deal between a private property developer and a state-owned company announced yesterday.

Caretaker Menteri Besar Tan Sri Abdul Khalid Ibrahim said the deal between Dijaya Corp Bhd and Permodalan Negeri Selangor Bhd (PNSB) is yet to be set in stone.

“The deal has not been signed yet. Dijaya has to accept the terms of the deal which it has yet to do so,” said Khalid, chairman of the wholly owned state subsidiary.

Khalid was speaking to after a press conference on the Selangor Pakatan Rakyat manifesto for the 13th general election.

Asked about the developer’s announcement on Monday, Khalid said: “I think they had acted upon a letter from PNSB which only outlines the terms of the agreement.”

Khalid said as a public-listed company, Dijaya can make the announcement of the land deal.

He also said the final discussion regarding the deal took place last month, suggesting that talks on the transaction had been initiated prior to that.

The Selangor state assembly was dissolved on April 4, a day after the federal Parliament’s dissolution, to pave the way for elections to be held on May 5.

The principles of a caretaker government, among others, prohibit the state or federal government from etching any long-term contracts that would bind the incoming government after elections.

Dijaya, in its announcement to Bursa Malaysia on Monday, said the company had entered into an agreement on April 15 to buy 1,172 acres (468.8ha) in Canal City, Selangor from PNSB and Menteri Besar Selangor (Inc).

The 11 parcels of land are priced at RM1.3 billion and Dijaya will settle the bill via deferred payments spanning a period of up to 20 years.

The price tag comprises land purchase of RM587 million, interest cost, share of gross development value (GDV) and profit entitlement from the development of the land.

The land, situated near established townships such as Putra Heights, Kota Kemuning and the upcoming Bandar Rimbayu, is earmarked for an integrated self-contained township and scheduled for launch within the next two years.

The integrated self-contained township will comprise landed houses, condominiums, serviced apartments, shop offices, corporate office towers, shopping malls, private hospitals and international schools.

It will also feature central linear parks and lakes, continuous vehicular free bike trails and jogging paths, children’s playgrounds, community clubhouses, sports centres, schools, kindergartens and many other public amenities to promote healthy living among patrons.

Dijaya group managing director Datuk Dickson Tan was quoted as saying that the area’s accessibility is expected to boost its capital appreciation.

“This project can potentially generate a GDV of up to RM20 billion when fully completed over its targeted development timeframe of 15 to 20 years.

“This acquisition will serve to further strengthen Dijaya’s presence in the three key growth regions of Malaysia, namely the southern region of Johor, the central region of Greater KL, as well as the northern state of Penang,” he said.

The company said the proposed township has excellent connectivity as it is accessible via four major expressways — Lebuhraya

Shah Alam, Lebuhraya Kemuning Shah Alam, South Klang Valley Expressway and Expressway Lingkaran Tengah.
In addition, the accessibility to the proposed township will be further enhanced with the completion of the West Coast Expressway.

This article first appeared in The Edge Financial Daily, on April 17, 2013.

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