JOHOR BAHRU (May 15): UDA Holdings Bhd is of the view that the commercial development model suggested by a company from China for developing the former Pudu Prison land is better than the model proposed by the Finance Ministry.
Chairman Datuk Nur Jazlan Mohamed said the proposed model from the Chinese company will ensure UDA of consistent cash flow returns every year.
"With the consistent cash flow from the commercial development project, UDA would be able to continue to help the Bumiputera community. Without the cashflow, how will UDA be able to help?
"It is the best model in terms of providing commercial returns to UDA," he told reporters after officiating the Juara Rakyat programme held in conjunction with the Kembara Mahkota Johor 2012 event at the Kempas Community Centre here on Tuesday.
The development model suggested by the Ministry of Finance meanwhile will involve the division of the upmarket land in the middle of Kuala Lumpur city into three different parcels.
Nur Jazlan said the joint venture partner for UDA in the development project would have to have a very strong financial background and highly skilled human resources.
He also expressed concern that if the project is carried out along the idea suggested by the Finance Ministry, where the land will be divided into three sections, it might create various problems and the project would be a failure.
If the project runs into problem, then the objective of UDA to have a high value asset capable of generating continued cash returns, would not be met, he said.
UDA will then not be able to continue with its role, Nur Jazlan said, adding that UDA's current cash flow level was weak with a small number of land to its ownership.
Nevertheless, he said the committee formed by UDA to prepare the masterplan for the development project will consider the Finance Ministry's proposal, but would also compare it with the commercial plan suggested by the company from China.
The committee will look into which model will be giving UDA the best commercial returns, Nur Jazlan added. — Bernama
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