Jiankun revives Kampong Bharu redevelopment project amid improving property market
Jiankun International Bhd executive director and chief executive officer Edwin Silvester Das said the project’s revival reflects the improved property market outlook following the reopening of the economy.
KUALA LUMPUR: Jiankun International Bhd (JIB) today signed a joint venture (JV) agreement with Menara Rezeki Sdn Bhd (MRSB) to undertake a redevelopment project in Kampong Bharu.
Under the deal, Menara Rezeki Properties Sdn Bhd (MRPSB) will be the JV company that will undertake the redevelopment project.
The agreement revives the redevelopment project that had been terminated previously, reflecting the improved property market outlook following the reopening of the economy.
A filing with Bursa Malaysia today shows that JIB and MRSB have entered into a share sale agreement to acquire a 70 per cent stake in MRPSB for RM700,000, and MRSB owns the balance.
l aspects of the development of Kampong Bharu.
Further, under the redevelopment plan, there will be 52-storey apartment towers built for the existing owners of the Flat PKNS Jalan Tun Razak in Kampong Bharu.
Tower 1, Tower 2, and Tower 3 under the redevelopment plan are mixed development with residential and retail units.
JIB executive director and chief executive officer Edwin Silvester Das said the project’s revival reflects the improved property market outlook following the reopening of the economy.
“We are confident that the redevelopment project will be a success as the reopening of the economy will benefit the property sector.
“It will also boost JIB’s plans to expand its property project while the redevelopment plan will also rejuvenate the Kampong Bharu area,” he said in a statement today.
The JV is also consistent with JIB’s objective of seeking various strategic alliances and joint ventures for synergistic benefits, which will pave the way for future collaboration between JIB MRSB and MRPSB.
It is also aligned with JIB’s objective to collaborate with local government, government-linked entities, and other property development.
“This JV will be a launching pad for more successful collaborations between JIB, MRSB and MRPSB.
“We are excited with the potential growth and value to add that we could bring to the community through our collaborations.
“Going forward, we will be able to work together on other property development projects that will benefit all stakeholders,” Edwin said.
The redevelopment project includes relocating existing residents into a new apartment that MRPSB will build, and the company will offer comprehensive compensation to all existing residents.
According to Edwin, the relocation of existing residents is important as it enables the demolition of Flat PKNS Jalan Tun Razak in Kampong Bharu to be done responsibly without affecting residents currently occupying the flats and lands.
This will also preserve the community’s identity as the existing residents will continue to stay in the new development.
Given the strategic location of the 3.69-acre site bounded on the side by Jalan Tun Razak, it will serve as a prime site for redevelopment.
Its excellent connectivity, existing infrastructure, public transport and proximity to Kuala Lumpur’s central business district will attract investment and boost small and medium-sized enterprises (SMEs) that will benefit the local community.
Edwin also said that the redevelopment project signifies a new milestone for JIB as it is the largest property development project undertaken by the company.
On another note, JIB is also very excited about the redevelopment of Kampong Bharu, given the positive spill-over effect on the local community.
“We are looking forward to the redevelopment of this project as it will help rejuvenate the Kampong Bharu area.
“This is as the redevelopment will encourage investment, improve local infrastructure and provide added multiplier effect that benefits the local community,” Edwin said.
Sources: New Straits Times