They better go away lar, trying to develop pr1ma houses at that location ? Got otak or not ?

Damn, so what does it means ?

Is it going to end up being abandoned forever and ever ?!

Ya feel relief knowing they quit, lousy revival proposal lol.
Moreover I dont think they are financially strong enough to be the knight trying to save our ugly sleeping princess !

Don't worry. DBKL has already identified a developer to revive the project. All we are waiting now is the forever arbitration proceedings to damn f**king come to an end!

what does it means by arbitration proceedings ?

who is the new developer ?!

Well, Ivory may not be a good choice but I also don't think the new choice agreeable by DBKL will be good either.

They always have other agenda which influence their choice, irregardless of merits.

If anyone has seen Ivory projects in Penang, they will know they all suffer from design deficiency. Penang Times Square is a big failure.

Been to Penang Time Square twice. One word to describe...Emmmmmpty.
Yes the whole space and layout design is totally a failure. When u walk in the mall everything seems not right. Vary bad feeling.

where does it say they are building prima house there?

Well let's wait and see.
DBKL is desperate to recover all his losses all these years. Sure will see big greed in the revival plan.

https://forum.lowyat.net/topic/3239568/+58

Actually, there are lots of old folks living in Pudu under bad conditions.

Pr1ma houses at Plaza Rakyat will be a good solution for them.

Yes, then can rent out to all the bangla and indon workers. Will become international community home.

If you know Pudu well, you will notice there has been many friends from Myanmar staying there these days.

KL = international city

True but here the proposal is coming from Ivory or DBKL ?

If it is coming from DBKL I can understand. But Ivory ? Quite hard for me to understand, as all business entities only interested to optimize profit .....

Payout in millions for stalled project is in the city’s interest, says mayor

BY BAVANI M

THE abandoned Plaza Rakyat project in Kuala Lumpur will finally be revived next month with a new developer named after the Kuala Lumpur City Hall (DBKL) takes vacant possession of the site.

This was following the arbitrator’s July 4 decision in favour of the local authority which stated that DBKL was lawfully entitled to terminate the joint-venture agreement with developer Plaza Rakyat Sdn Bhd (PRSB).

But this comes with a heavy price.

The same arbitrators had also ordered DBKL to pay PRSB’s bank loans based on an undertaking given by the former although it has no legal obligation to do so.

Now DBKL has to pay a whopping RM200mil of taxpayers’ money — RM100mil to PRSB for the structure and foundation of the 20-year abandoned project, and the balance for bank loans with interest that had snowballed since 1992.

The initial loan taken was a total of RM58mil. It is learnt that DBKL was in the midst of negotiating the amount to pay the financiers.


Rusty metal bars and concrete at the abandoned site.
Plaza Rakyat on the other hand must pay DBKL RM30mil for arrears of quit rent amounting to RM7,043, 500, arrears of lease rental amounting to RM2,525,000 and RM20, 045,000 in liquidated damages.

In order for DBKL to take vacant possession of the site, it has to register the award with the authorities.

The order has raised several immediate questions, chief of which is why did DBKL agree to pay the sum when it never took the money from the banks.

“This sets a dangerous precedent whereby public funds are being used to pay banks which loaned money to developers.

“The question is, despite not having any legal obligation to do so, why did DBKL agree to pay the sum,” asked an informed source.

Defending the move to pay up the charge, Kuala Lumpur mayor Datuk Seri Ahmad Phesal Talib said DBKL had to settle the charge over the sub-lease before they could cancel it.

“The decision for that loan to be settled with the bankers had been decided by the arbitrator earlier as a separate decision that needs to be obliged by DBKL.

“What’s important is Plaza Rakyat must be revived as it is not in the city’s interest to delay the project further. We are pushing to start as soon as possible. I want this solved during my tenure.

An LRT passes inside the half completed structure with exposed rebars and scaffolding and parts of a crane.
An LRT passes through the half- completed Plaza Rakyat structure.
“Once we register the award we can take vacant possession of the site. We are currently in negotiation with the banks on the amount to be paid,’’ said Ahmad Phesal, adding that DBKL would be able to reclaim the site next month once the award is registered.

Ahmad Phesal said DBKL was discussing with a new company to develop the site at a reasonable offer.

He added that it would be a mixed development and that DBKL was looking at the layout, and the intensity and density of the project.

StarMetro had earlier quoted Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor saying that several parties had shown interest in developing Plaza Rakyat, but the Government was adamant in selecting the right one.

He said the government wanted the best proposal to benefit all stakeholders, including DBKL.

The abandoned Plaza Rakyat had become derelict with pools of stagnant water everywhere and rubbish strewn all over the place, which made it a paradise for mosquitoes to breed.

The original plan comprised a 79-storey office tower, 46-storey condominium, 24-storey hotel and seven-storey shopping centre.


A TNB substation inside the project site with a pool of water around it.
The RM1.4bil project was 30% completed about 15 years ago when the developer, PRSB, ran into financial difficulties during the 1997/1998 Asian financial crisis forcing it to abandon the project.

The Government decided to terminate PRSB’s contract in 2010, 12 years after the company abandoned the mixed-development project.

Subsequently, PRSB went into receivership and came under the administration of a consortium of lender banks.

This post has been edited by bb68: Aug 14 2014, 02:38 PM

Yes, our money ! Absolutely disgusting !

This post has been edited by puchongite: Aug 14 2014, 02:19 PM

How is this outcome compared to previous Ivory proposal which suggest as follows:

According to the ARA, Ivory Properties will pay RM560 million to DBKL for the project. At the same time, Ivory Properties will settle all outstanding quit rent to DBKL, while PRSB will be paid RM400 million, which will go towards settling its debts with the banks and other parties.

Damn shit ! Standard one students know which is better !

Question is whether the new developer will pay any money to DBKL ? Is yes, where will the money go to ? Will it be credited back to the same pool where the 200 mil is taken from ?

Nope. The new bumiputra company will get another RM200mil to start building.