The compensation for the strata owners of Ampang Park mall, which will make way for the second Mass Rapid Transit (MRT) line, is estimated to range from RM300 million to RM400 million.
Constructed in 1973, the 355,489 sq ft property is considered as the first shopping centre in Kuala Lumpur.
“This is, after all, a small old mall,” said Stocker Roberts & Gupta principal D.B. Das Gupta.
He estimates that the payment for the second floor units would range from RM1,500 and RM1,800 psf. That for first floor at RM1,700 and RM2,500 psf, while owners of ground floor units would get RM5,200 to RM6,200 psf.
The ground level units are the most sought-after, with a monthly rental rate of RM30 and RM38 psf, he noted. It is also said that there will be a separate compensation package for tenants.
“Business for the tenants and owners will not be the same, so all these costs should be built into the compensation award. There will also be a gestation period after the relocation,” noted Das Gupta.
He urged the federal government to provide fair remuneration as the shop owners will be economically impacted by the compulsory acquisition of the shopping mall.
“They have a right to claim for loss of profit and goodwill for up to three years, and not between six to nine months.”
According to one of the strata unit owners, the Federal Territory Land Office verbally offered around RM6,000 per sq ft for the ground floor units after it concluded the hearing on the compensation on 2 September.
“We were told to wait for a formal written award after being told verbally,” said the person.
In all, about 80 percent of the shoplot owners have obtained the formal written notice on the compensation, which is expected to be handed out by November 2017.
After receiving the notice, owners have up to six weeks to appeal the amount.
They can do so with “Borang N” and pay around RM3,000 in court fees and submit the documents to the Land Administrator, who has 12 months to refer the issue to the High Court. The unit owners can appeal up to the Federal Court.
Image sourced from Timeout.
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email email@example.com
For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.