YTL reveals valuation of plot for MRT project

KUALA LUMPUR: YTL Corp Bhd has released the value of a plot of its land in Jalan Bukit Bintang, earmarked for acquisition for the construction of the Klang Valley Mass Rapid Transit (MRT) project.

Independent valuer Raine & Horne International, Zaki and Partners Sdn Bhd, in a letter released by YTL Corp to Bursa Malaysia on Monday, said the resultant decrease in the estimated market value for the plot of land measuring 820.5 sq ft is RM2.05 million or RM2,500 per sq ft.

"This is expected to be compensated by the authorities as determining the compensation to be awarded, the authorities are bound to take into consideration, inter alia, the market value based on the principles set out in the LAA (Land Acquisition Act 1960)," said the valuer.

In a letter addressed to YTL Corp and YTL Land & Development Bhd directors, the valuer said it was informed by Suruhanjaya Pengangkutan Awam Darat (Spad) the 820.5 sq ft piece of land will be acquired for the MRT project.

It said the tract of land, which is about 7.5% of the land area of Lot 534, was intended to be acquired as gazetted vide a Warta Kerajaan dated June 27, 2011.

"In our opinion, any development of the subject property will not be severely impacted as Jalan Bukit Bintang can still be accessed on ground level," the valuer added.

Raine & Horne is the independent registered valuer jointly appointed by YTL Corp and YTL Land.

Spad has had public meetings with landowners who are affected to address concerns, which include the compensation for their land. Some are concerned that such acquisitions may be done at a large discount to prevailing market rates.

Observers said YTL Corp's valuation for its tract may set a precedent for other landowners who seek compensation for their properties affected by the MRT project.

"The real test is whether a fair price will be granted to the smaller land owners," said an industry observer.

It was reported that the government will acquire between 500 and 600 lots of private land for the MRT, of which 250 lots will be in Kuala Lumpur.

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.