Retro Highland Sdn Bhd, a 50 percent controlled unit of S P Setia Bhd, has agreed to undertake a RM11.03 billion mixed development project in Cheras for Kuala Lumpur City Council (DBKL) in exchange for 52.25 acres of land.
Tradewinds Corp Bhd owns the other 50 percent stake.
Dubbed the Quality Sustainable People Housing (QSPH) project, the development is set to be completed in 2028, featuring 3,971 residential units, a market, 112 shop/stall units and other public facilities.
Meanwhile, the exchange land has an agreed value of RM1.19 billion, which comprises the RM344.79 million construction cost for QSPH’s Phase 1, RM835.12 million for Phase 2 and a cash consideration of RM14.99 million.
Additional cash consideration will be paid to DBKL in the event QSPH’s construction cost is lower than the estimated cost.
In a Bursa Malaysia filing, S P Setia revealed that the QSPH development is a “public-private strategic partnership undertaking which is in line with the government’s intention to encourage the private sector to form partnerships with DBKL to undertake urban renewal initiatives under the KL Structure Plan 2020”.
It explained that while it had recently acquired large tracts of land banks through its acquisition of I&P Group Sdn Berhad, “it is very much an opportunity for S P Setia to increase and replenish its current land bank in key areas of Kuala Lumpur via the privatisation agreement”.
The QSPH project will also allow the group to strengthen its presence in Klang Valley considering that the exchange land is located in the heart of Kuala Lumpur.
“The strategic location of the exchange land provides a rare opportunity for S P Setia to further showcase its expertise in residential and commercial developments within the heart of Kuala Lumpur,” it added.
Image sourced from The Star Online
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