Malaysia’s public transport company intends to build seven real estate projects in Kuala Lumpur and Selangor with a combined gross development value (GDV) of RM4 billion over the next four years, reported Bernama.
This is in line with Prasarana Malaysia Bhd’s goal to boost the proportion of revenue coming from non-fare assets to 50 percent by 2020, according to its Chairman Tan Sri Ismail Adam.
“Currently, non-fare income accounts for less than 10 percent of revenue,” he told the media during the groundbreaking ceremony of Latitud8, a RM1.1 billion mixed-use project sited on top of the Dang Wangi light rail transit (LRT) station.
49 percent of the development is owned by Prasarana, while 51 percent is held by Crest Builder Holdings Bhd’s subsidiary, Intan Sekitar Sdn Bhd.
Ismail explained that out of the seven projects, six would consists of transit-oriented developments (TODs), meaning they will be integrated with LRT and monorail systems to increase passenger flow. Another objective is to maximise the use of federally owned land along these transport networks.
Besides the Dang Wangi LRT station, other LRT stations where TOD projects would be built are those in Awan Besar, Kelana Jaya, Ara Damansara and IOI Puchong Jaya, while the monorail station at Tun Sambanthan in Brickfields would also leverage this concept.
Finally, Prasarana’s seventh development will comprise serviced apartments in Taman Tun Dr Ismail in the capital.
Meanwhile, Latitud8 is targeting to sell its residential units to locals and foreigners at a 50:50 ratio, according to Crest Builder’s Managing Director Eric Yong Shang Ming.
On the development’s retail space, which is estimated to be valued from RM160 million to RM180 million, it plans to dispose 80 percent of the premises and keep the remainder for itself.
The 43-storey Latitud8 building is expected to be completed by end-2019 after construction work commenced in March.
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email mangales@propertyguru.com.my
