Pink Corner, TRC win bid for land in Sungai Buloh

By Shalini Kumar of theedgemalaysia.com

KUALA LUMPUR: Kwasa Land Sdn Bhd, a wholly-owned subsidiary of the Employees Provident Fund (EPF), named Pink Corner Sdn Bhd and TRC Land Sdn Bhd as the first two winning bidders under the bumiputera companies’ category to develop its RM50 billion Kwasa Damansara township in Sungai Buloh, Selangor. Pink Corner and TRC Land were successful in gaining a plot of land each in the proposed development. Pink Corner emerged as the highest bidder, quoting RM13.07 million or RM70 per sq ft for a 4.28-acre (1.73ha) plot of land in Kwasa Damansara, while TRC Land was the highest bidder for a 1.72-acre tract (0.69ha) at RM6.13 million or RM82 per sq ft. Kwasa Land said the land parcels were tendered on an “as is, where is” basis based on agriculture titles. Both land parcels were sold above the reserved price by 13% and 11%, respectively. Pink Corner is owned by Asiah Osman and Salasiah Mohd Said, with a 50% interest each. TRC Land is a wholly-owned subsidiary of TRC Synergy Bhd, with developments mostly in Johor, Negeri Sembilan and Selangor. “Both companies were part of a group of nine bidders that participated in the bids for the land that were advertised for sale to bumiputeras in August 2013 — specifically addressing the Bumiputera Economic Empowerment Council’s desire of “enhancing bumiputera equity ownership in the corporate sector as well as asset ownership”, said Kwasa Land in a statement yesterday. Kwasa Land has been identified by the government as one of the key players to support the call for bumiputera participation. The company said it is committed to support this call by targeting 35% of land sales to bumiputera companies. In a note to clients yesterday, JF Apex Securities deemed TRC Land’s bid price of RM82 per sq ft for the land fair as compared with nearby transacted land price where Mah Sing Group Bhd paid RM298 per sq ft for the Damansara Sentral project land last year. “While TRC has not decided on the final development plan on the land, we believe the group could undertake the development of serviced apartment in view of the small size of the land,” it said. Tenders for the first phase of Kwasa Damansara is expected to be called next month. The project is expected to generate RM50 billion in gross development value over the next 20 years. Over 150 developers have submitted their credentials during the pre-qualification exercise, but big names in the construction cum property development sector are slated as the frontrunners. IJM Corp Bhd, Sunway Bhd, WCT Holdings Bhd and Malaysian Resources Corp Bhd (MRCB) are thought to be the key developers for the project. Those who had land adjacent to the township, such as Tropicana Corp Bhd and government-linked companies/bumi developers such as UEM Sunrise Bhd and Glomac Bhd could also be potential winners. The Kwasa Damansara project, which will be situated on 2,330 acres (942.9ha) of land acquired from the Malaysia Rubber Research Institute, is to be developed into eight precincts. The development will consist of 42% residential properties, 11% commercial properties, 7% for mixed use, 11% for green and open space, 23% for infrastructure and 6% for community facilities. This article first appeared in The Edge Financial Daily, on January 28, 2014. For more information on Building and Construction event, please visit www.asiapacificevents.com