- The Malaysian Insider (TMI) reported that property group Tradewinds Corp
– majoritycontrolled by tycoon Tan Sri Syed Mokhtar Al-Bukhary – has proposed
to acquire BB Plaza and the adjoining Yayasan Selangor building. We understand
that the plan forms part of the redevelopment of Jalan Bukit Bintang to
facilitate the construction of an MRT station along the prime city centre
shopping address.
- Interestingly, Tradewinds Corp received RM510mil after it
sold Menara Tun Razak to sistercompany, Tradewinds (M) Bhd. Syed Mokhtar has an
indirect stake of 43% and 71% in Tradewinds and Tradewinds Corp, respectively.
- The TMI report
cited sources as saying a proposal has been sent to the state-owned Yayasan
Selangor for the 12-storey building – located at the intersection between Jln
Bukit Bintang and Jln Sultan Ismail. A similar proposal has been offered to UDA
Holdings, the owner of BB Plaza. However, both offers have yet to be considered
for now.
- We also gather that UDA Holdings receives some RM25mil a
year from BB Plaza tenants, while Yayasan Selangor has lined up plans to
upgrade its building to include a hotel and space for the MRT station entrance.
- There have been some concerns ever since the local press
reported that occupants of BB Plaza would have to vacate the building next year
to pave the way for MRT Corp to commence underground station works. On the
other hand, there has been scant detail regarding compensation to the traders
for being asked to move out.
- This has led to some 50 traders protesting outside the
mall entrance yesterday. Equally, UDA claims to be in the dark over the matter
– clarifying in a statement that it has yet to receive any formal notification
from the Ministry of Finance (MoF) whether BB Plaza would be maintained,
demolished or acquired.
- Thus far, UDA has issued eviction notices to three of its tenants at the mall. They are Starbucks
Coffee, Gloria Jeans and Hot & Roll. In a reply to TMI yesterday, UDA
Chairman Datuk Nur Jazlan Mohamed revealed that discussions are still ongoing
over whether BB Plaza would be sold or redeveloped.
- Importantly, the delay in acquiring the land in Jln Bukit
Bintang has prompted the Finance Ministry to call MRT Corp and other parties
for an urgent meeting to consider
alternatives to ensure that the Sg.Buloh-Kajang MRT project meets its dateline
to commence operations in 2017.
- We gather that any delays would be largely confined to the
tunnelling portion which is undertaken by the MMC-Gamuda JV, particularly
within the Jalan Bukit Bintang and Jalan Sultan areas. On the flipside, the
momentum of contract awards should intensify going into 2H12. The latest award
for pre-cast concrete tunnel segment linings to Kim Lun Corp brings the total
value of major jobs awarded to-date to ~RM14bil out of an estimated initial
cost of RM20bil.
Source: AmeSecurities
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