KL Metropolis' GDV RM15b over 15 years
By Sheikh Al-Zaquan of theedgeproperty.com
Tuesday, 25 October 2011 14:37
KUALA LUMPUR: The 75.5-acre (30.2ha) KL Metropolis development in Jalan Duta, Kuala Lumpur — which will house the new headquarters of the Malaysia External Trade Development Corp (Matrade) — has a total gross development value (GDV) of RM15 billion. It will be completed by 2025 over three phases, says Naza TTDI Sdn Bhd, the property arm of the Naza Group.
Naza TTDI was awarded the site by the government in return for developing the new Matrade headquarters, which will occupy a portion of the land and cost RM628 million to build.
The first phase of the KL Metropolis development involves an estimated GDV of RM6 billion and will see the construction of the new Matrade HQ, an exhibition centre, a retail space offering more than two million sq ft, a residential tower, two hotels and two office buildings.
SM Faliq SM Nasimuddin, Naza TTDI deputy executive chairman and group managing director, said the company will invite tenders for the construction of the RM628 million Matrade HQ.
"We are quite new to the construction industry. We would like to take this opportunity to seek out good partners so we that can learn... from the transfer of knowledge and technology," said Faliq.
The Naza brothers had previously acquired a controlling stake in construction outfit Kumpulan Jetson Bhd to tap its expertise for the KL Metropolis project. However, they then sold out from Jetson due to a management disagreement.
Faliq said a number of the country's top contractors have shown interest in participating in the project. Construction has begun with the piling 60% completed since it began in May. Aneka Jaringan Sdn Bhd was awarded the RM38 million contract.
Next, said Faliq, Naza TTDI will open a tender for the building of the Matrade HQ and select a candidate within two months.
Matrade will be the owner and caretaker of the exhibition centre, though it will be managed by Naza TTDI. According to Faliq, Naza TTDI has secured the funds required to build the exhibition centre.
It will open in 2015 with a large-scale international event, for which Faliq said the company has received a number of proposals.
Naza TTDI is also in discussions with numerous operators to occupy the two hotels planned for Phase 1.
He said Phase 2 includes plans for two more hotels, though the decision will be made after observing market conditions and market demand.
The 40-storey residential tower planned for Phase 1 will comprise units sold for a price that may exceed RM1,000 per sq ft, based on the selling price of other units in the area, he said.
Phases 2 and 3 may include a five-star healthcare development, and education establishments potentially involving business schools.
A landmark tower originally planned under Phase 1 was pushed back to Phase 2, and Faliq emphasised that this portion of the development will be a private initiative.
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