Bandar Malaysia taking shape

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KUCHING: CH William Talhar was quoted in a media report that the development of Bandar Malaysia will likely be carried out via a consortium of developers with a potential GDV of the land that could run into ‘billions of ringgit’.

AmResearch Sdn Bhd (AmResearch) noted that the deadline for submission has been set on July 10 and after this, the shortlisted candidates will be required to sign non-disclosure agreements. A Memorandum of Information containing more information would then be provided to assist the bidders in preparing their bids.

If things go as planned, the entire exercise could be wrapped up by October this year.

The media also reported that unlike some other large redevelopment projects such as KWASA Damansara, Bandar Malaysia will not be carved out nor developed via a series of joint ventures. Instead, it will likely involve equity participation in nurturing the overall make-up of Bandar Malaysia.

“Via a screening process, we reckon that each potential bidder is required to make their own respective assumptions. The indicative land value will be determined on a gross basis, we understand,” said the research house.

Along with the TRX, KWASA Damansara and Menara Warisan Merdeka (KL118), Bandar Malaysia is among several prime government redevelopment projects that are set to take off over the next few years.

Bandar Malaysia is central to Greater KL’s transformation programme. The project site is located approximately 7km from KLCC, and 3km from the TRX. It currently houses the Sungai Besi airfield. At the same time, a Bernama report indicated that 1MDB is required to relocate existing facilities on the site.

This is to be carried out through the delivery of eight new military and police bases across Malaysia. The construction of these new bases are on track for handover by January 1, 2017, according to the Bernama report.

“That being said, we believe it is still too early to pre-empt any potential beneficiaries as key details remain unknown at this juncture. Likewise, the type of property components that can be absorbed by the market is another key consideration for the bidders to consider, we opine.”