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S P Setia’s bid for Bangsar land turns unconditional

KUALA LUMPUR: S P Setia Bhd said the privatisation agreement between its 50%-owned unit Setia Federal Hill Sdn Bhd (formerly Sentosa Jitra Sdn Bhd), the government and Syarikat Tanah dan Harta Sdn Bhd has become unconditional.

This brings the property developer closer to acquiring the 51.568 acres (20.86ha) of land in Jalan Bangsar here, in exchange for the development of a RM845 million integrated health and research institute, 1NIH Complex, on a 41.115-acre piece of land located in S P Setia’s Setia Alam township in Shah Alam, Selangor.

In a filing with Bursa Malaysia yesterday, S P Setia said the Health Ministry was satisfied that the conditions set out in the privatisation agreement had been fulfilled and that the effective date of the privatisation agreement had been determined to be June 17.

The agreement dates back to a 2011 proposal in which the Public Private Partnership Unit (PPPU) in the Prime Minister’s Department had granted Setia Federal Hill approval-in-principle to enter into negotiations with the PPPU and the ministry over the development of the health complex.

The government’s approval-in-principle to the proposal submitted by Setia Federal Hill was subject to the transfer of the Setia Alam land to the government and the submission to the government of a letter of offer evidencing that Setia Federal Hill has secured the project financing in respect of the 1NIH Complex.

Setia Federal Hill plans to redevelop the Bangsar land into an integrated mixed residential and commercial project and provide the government with a 20% share of the net profit from the redevelopment.

Currently, five agencies of the National Institute of Health, which the Health Ministry is responsible for, are situated on the land. They are the NIH Secretariat, the Institute of Health Management, the Institute of Public Health, the Institute of Health System Research and the Institute for Health Behavioural Research.

 

This article first appeared in The Edge Financial Daily, on June 20, 2014.

 

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