RM200m development plan for Dang Wangi station

KUALA LUMPUR: Government-owned public transport operator Syarikat Prasarana Negara Bhd is planning a high rise real estate project over the existing Dang Wangi light rapid transit (LRT) station with an estimated gross development value of RM200 million.

Prasarana managing director Datuk Shahril Mokhtar yesterday said Prasarana had last week chosen a local property developer as its joint venture partner following the close of a recent exercise to seek proposals.

“Each bidder came to us to present their plans on how to develop the Dang Wangi station. The announcement will soon be made to the successful company to partner Prasarana,” Shahril told reporters after a signing ceremony.

According to Shahril, the project will comprise office and residential properties to be built on the existing structure of the LRT station in the city centre.

Last March, Shahril told The Edge that the existing structure of the Dang Wangi station was suitable to serve as the foundation for a 40-storey tower.

Some analysts however are lukewarm on Prasarana’s plans to build offices in the Dang Wangi area given the existing supply of such properties and the general oversupply of office space in the market over the medium term.

At present, the LRT system runs below the Dang Wangi station with a small building housing its overland station on the three-acre land.

The station sits on the quieter stretch of Jalan Ampang, near buildings like Menara Safuan and Wisma Denmark.

The closest mixed development project in the Dang Wangi area is the CapSquare development.

Redevelopment of the Dang Wangi station will be Prasarana’s first real estate development site as the public transport operator seeks to unlock value from its land and help diversify its revenue stream.

It is uncertain which other sites Prasarana could develop in the future. But it is understood that Prasarana is keen to get started on Dang Wangi before embarking on other similar ventures.

Meanwhile, Prasarana yesterday signed a memorandum of understanding with the Malaysian Anti-Corruption Commission (MACC) to strengthen cooperation on anti-corruption measures.

“Prasarana is handling a lot of big projects. This year alone we are doing RM5 billion worth of jobs in line extensions. We want to show the public and the government that we are very serious in preventing corruption,” Shahril said.