KUALA LUMPUR: UDA Holdings Bhd will receive RM1bil as development rights for the transformation of the former Pudu jail site into the multi-billion ringgit Bukit Bintang City Centre.
UDA, which is the landowner, had on Wednesday signed a development rights with the special purpose vehicle (SPV) -- BBCC Development Sdn Bhd (BBCC) – which will undertake the project which will cover 19.4 acres.
The land would be transformed into a mixed residential and commercial development comprising, amongst others, a retail mall, an entertainment block, strata offices, office towers, a hotel and serviced residence.
UDA and Eco World Development Group Bhd will have a 40% stake each in BBCC while the Employees Provident Fund Board (EPF) will have a 20% share. The broad members of BBCC comprises of four representatives each from UDA and Eco World and another two from the EPF.
Under the joint development authority with UDA to undertake the project, UDA shall grant to BBCC the development rights. The potential gross development value to be generated from the project is about RM8bil.
BBCC will be applying for a development order and it could take six months. The whole project is expected to be completed in eight years.
Eco World said the landowner’s consideration of RM1bil was arrived at on a willing-buyer willing-seller basis based on the development potential and prospects of the land vis-a-vis its strategic location.
Other factors were the scarcity of commercial and residential land in the Bukit Bintang area, being one of the hotspots in the city center; the close proximity of the land to the prime retail and commercial area within the Kuala Lumpur Golden Triangle. - The Star
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