Malaysia is witnessing a growing interest for transit-oriented developments (TOD), a mixed-use commercial and residential project specifically designed to maximise access to public transport.
In Kuala Lumpur, Malaysian Resources Corp Bhd’s KL Sentral development in Brickfields was the first project to use the TOD model.
KL Sentral, which spans 29.16ha, encompasses the RM1.1 billion Stesen Sentral, residences, Grade A-office towers and suites, malls and hotels.
Built around Malaysia’s biggest transit hub, the development offers excellent investment opportunities, global connectivity as well as international lifestyle.
Stesen Sentral is where six rail networks meet, including ERL, KTM, LRT and the monorail, which it links to via a pedestrian walkway.
KL Sentral’s residences have witnessed great capital appreciation as well as rental demand.
Meanwhile, Prasarana, the operator and owner of various public transport providers, owns several parcels of land for development.
Notably, the company, via its unit, Prasarana Integrated Development Sdn Bhd (Pride), will tap on the economic potential of its land banks and real estates located along the Ampang and Kelana Jaya LRT lines.
Specifically, Prasarana had identified over 13 parcels of land for development along its existing and future LRT stations. The company has inked agreements with six property developers for joint mixed-property developments along its LRT extension lines in Brickfields, Dang Wangi, Awan Besar, Kelana Jaya, Taman Tun Dr Ismail and Ara Damansara.
Last year, Crest Builder Holdings Bhd inked a joint-venture agreement with Prasarana to build a mixed use development that will be integrated with the Kelana Jaya LRT.
Two years ago, the construction firm also signed a joint venture with Prasarana for the development of 40-storey tower that will sit atop the Dang Wangi LRT station along Jalan Ampang in Kuala Lumpur.
Prasarana also announced in 2013 that TRC Synergy will build a commercial-residential project worth RM687.5 million in Ara Damansara, while Naza TTDI will build a RM153 million condominium tower in Taman Tun Dr Ismail.
For the land in Brickfields, Bina Puri Holdings Bhd signed a joint-venture agreement with Prasarana for the development of a RM1.3 billion mixed development, which it will connect to the Tun Sambanthan monorail.
SM Land Sdn Bhd and IOI Properties Bhd will each develop a 2.02 ha site in Awan Besar and a 2.83ha site in Puchong, which will have a gross development value of RM600 million and RM500 million, respectively.
Prasarana revealed that it has identified more areas for development along the Ampang and Kelana Jaya LRT lines.
According to Prasarana Negara Bhd group managing director Datuk Seri Shahril Mokhta, some of the projects will be offered to developers through a direct negotiation basis since they currently own the land.
“For land that we own, we will call for an open tender. Most of the projects will be implemented using the TOD model. That is the trend now as house owners look for integrated developments with good public transport and connectivity. KL Sentral started this trend with its transit hub. From that idea, we started to build based on TOD,” said Shahril.