Plaza Rakyat New Development Plan


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Resurrected Plaza Rakyat set to be new iconic landmark

Vasantha Ganesan / The Edge Malaysia
April 18, 2017 17:00 pm MYT


THE once abandoned Plaza Rakyat in Kuala Lumpur will soon be redeveloped into a landmark that the developer says will be the most significant next to the Petronas Twin Towers.

Slated for completion in 2022, Profit Consortium Sdn Bhd has planned four skyscrapers — the tallest at 92 storeys — on the five land parcels that make up the 15.3-acre site in Pudu. Some 3,805 serviced apartments will be built.

The 92-storey block will have more floors than the 88-storey Petronas Twin Towers.The Signature Tower in Tun Razak Exchange will also be 92 storeys tall, but the highest will be the 118-storey KL118 being built by Permodalan Nasional Bhd.

Profit Consortium bought the abandoned project from Kuala Lumpur City Hall (DBKL) for RM740 million in October 2015.

The company is an 82:18 joint venture between China-based, Singapore-listed property developer Debao Property Development Ltd’s wholly-owned Pavillion Treasures Land and Development Sdn Bhd and Malaysian firm Gabungan Tiasa Sdn Bhd.

The developer, which is finalising the plan for the multibillion-ringgit mixed-used development, has already commenced repair works on the site.

In a circular to shareholders on Jan 11, Debao Property said the project will comprise a central business district (1.35 million sq ft of gross floor area), a five-star hotel (200,000 sq ft), a budget hotel (150,000 sq ft) and a residential condominium (5.6 million sq ft).

The four towers, sitting atop a commercial podium that includes retail space, will provide 7.3 million sq ft of GFA.

“The company believes that Plaza Rakyat ... will become the next most significant landmark in Kuala Lumpur after the Petronas Twin Towers,” the circular says.

Meanwhile, documents sighted by The Edge reveal that Profit Consortium began the development application process last August. In December, it received planning permission for its four towers — a 92-storey building with 1,196 serviced apartments and a hotel, an 87-storey tower with 1,616 serviced apartments, a 63-storey block for a hotel and another 62-storey block with 993 serviced apartments.

On the gross development value of the project, industry experts have given a back-of-the-envelope figure of RM6 billion to RM8 billion. As a general rule, in calculating GDV, the plot ratio and sale price are important.

According to Debao’s annual report for the financial year ended Dec 31, 2015, the developer had planned pre-sales to commence in the first quarter of this year. With, 3,800 serviced apartments available for sale, the question is, who will be the target market and at what price will they be sold.

Last week, TheEdgeProperty.com reported that the average transacted prices of some non-landed residential properties in the KLCC area declined 10% to 24% last year compared with 2015.

For example, the price of Idaman Residences had dropped from RM900 to RM806 psf and St Mary Residences from RM1,391 to RM1,053 psf.

So, what now of Plaza Rakyat? Debao is linked to Guangdong Debao Land Co Ltd. It is not known if Debao has plans to sell its apartments to buyers from China. Beijing recently introduced restrictions on capital outflow, causing some purchasers of the Forest City project in Johor to have second thoughts.

The history of Plaza Rakyat goes back to 1993, when Tan Sri Ting Pek Khiing’s Wembley Industries Holdings Bhd undertook to develop the land. At that time, the estimated GDV of the mixed-used development was RM1.3 billion.

But the project was halted when the Asian financial crisis of 1997/98 struck. In November 2014, Plaza Rakyat was handed over to DBKL following a legal process.

Meanwhile, a search on the Companies Commission of Malaysia website reveals that Profit Consortium’s directors are Zhang Mao, Yuan Junrui, Tan Peng Koon, Yuan Lesheng, Tan Sri Abdul Samad Alias, Anuar Adam and Zhong Yuzhao.

The shareholders of Gabungan Tiasa are Eco Habitat Sdn Bhd (33.33%), Maxcorp Development Sdn Bhd (28.67%), Sungei Wang Group Sdn Bhd (28.67%) and Abdul Samad (9.33%).

Eco Habitat’s shareholders are Datuk Seri Tee Yam (90%), Ameera Encee Koo Abdullah (5%), Wong Siaw Puie (5%) and Koo Soon Khang (one share).

The shareholders of Maxcorp are Aldillan Anuar (60%), Almiran Anuar (35%) and Anuar Adam (5%). As for Sungei Wang Group, the shareholders are Abdul Jaliludin Jamalludin (69.31%), Simon Wee Howe Yew (29.70%) and Tan Peng Koon (0.99%).

Anuar Adam, Tan, Aldillan, and Abdul Samad all sit on the board of Tadmax Resources Bhd. Abdul Jaliludin is also a director of Anzo Holdings Bhd.

According to the annual report, apart from Plaza Rakyat, Debao has three other projects in Malaysia. One is in Kuchai Lama and is scheduled for completion in 2019.

Another ongoing project is in Imbi, Kuala Lumpur. Debao took the market by surprise when it paid a record sum of RM4,310 psf or RM388 million for the former SRJK © Jalan Imbi. Debao, through Elite Starhill, plans to build two blocks of serviced apartments (72 and 73 storeys) on the 90,008 sq ft tract near Berjaya Times Square. Its annual report states that the project, with GFA of 120,000 sq ft, is expected to be completed in 2019.

The third project is in Cheras Mahkota, which has been reserved for future development. It has an estimated GFA of 129,000 sq ft.

delete

This post has been edited by bb68: May 4 2017, 06:07 PM

Plaza Rakyat to Rise After Compensating Buyers
• August 2, 2017




To protect the interest of original buyers, the government will only allow the Plaza Rakyat project to start once the issue of compensation to buyers is resolved, said Deputy Federal Territories Minister Datuk Loga Bala Mohan.

He revealed that a clause aimed at safeguarding the original buyers has been inserted in the sales and purchase agreement between the Kuala Lumpur City Hall (DBKL) and the project’s new developer, reported The Star.

In October 2015, Profit Consortium Sdn Bhd, the new developer of the project, had signed a sale and purchase agreement to take over the abandoned project for RM740 million, of which RM40 million is set aside to resolve compensation issues.

Of the 211 original buyers, 104 had been issued offer letters by Profit Consortium since January and the process is still ongoing.

“DBKL is the one approving the plans and we will ensure that the new developer fulfils their obligations to the original buyers of the project,” said Loga Bala.

“Having said that, the buyers should be reasonable in their claims and not expect the impossible,” he said, noting that former buyers should receive what they had initially put into the project.

Loga Bala made the statement following reports that some of the original buyers wanted to be compensated based on the current market price, which should not be the case as DBKL and the new developer had no legal obligation towards them.

“They must understand that DBKL has already sold the land and has no further rights to it.”

“You can still purchase a unit from the project today but at the current market rate; the RM400,000 can be off-set against the new purchase price,” he explained.

Abandoned in 1997, Plaza Rakyat was 30 percent complete when Plaza Rakyat Sdn Bhd (PRSB) ran into financial problems during the 1997/1998 Asian financial crisis.

The government terminated PRSB’s contract in 2010 or 12 years after the mixed-development project was abandoned by the company.

Meanwhile, Profit Consortium had revised their previous plan for the 6.2ha site, with their latest proposal featuring five skyscrapers, revealed Loga Bala.

The new developer plans to build a 96-storey tower, comprising 50-storey service apartments, 26-storey hotel and 10-storey office space. The others will be 70-, 60-, 58- and 52-storeys high.



Image sourced from The Star



Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my

by Raub308 from http://www.skyscrapercity.com/showthread.p...=290375&page=56

The footprint of enlarged PR project may look like this...

This post has been edited by bb68: Aug 10 2017, 11:42 PM


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Anything lesser than 118 height is not worth mentioning. If Debao wants to make it a real hit in the market, dwarf the Merdeka Tower even by 1 storey

judging from how it was handled from being abandoned, 20 years of court case, revival plan by Penang developer then profit konsortium, continuing delay until today, it has been a series of failures.

Agensi : Dewan Bandaraya Kuala Lumpur, W.Persekutuan
No. Rujukan Projek : DBKL.OSC (S) A13 T4 170714-041 (PTKM 171117)

Nama Projek : CADANGAN PEMBANGUNAN - PELAN CADANGAN PEMBANGUNAN DIKEMUKAKAN KE JABATAN INI MELALUI JABATAN PERANCANGAN EKONOMI DAN PEMBNAGUNAN BERTARIKH 14.10.2016. PERMOHONAN CADANGAN PINDAAN PERINTAH PEMBANGUNAN BERTARIKH 16.11.1991 KEPADA CADANGAN PEMBANGUNAN BERCAMPUR (KOMERSIAL) YANG MENGANDUNGI:-

1) 8 TINGKAT PODIUM KOMERSIAL BESERTA TEMPAT LETAK KERETA BERTINGKAT MENGANDUNGI:
A) 6 TINGKAT RUANG PERNIAGAAN
B) 6 TINGKAT TEMPAT LETAK KERETA (PODIUM)
C) 6 TINGKAT TEMPAT LETAK KERETA (DI ATAS STESEN LRT PLAZA RAKYAT)
D) 5 TINGKAT TEMPAT LETAK KERETA BAWAH TANAH (BESMEN 2, 3, 4, 5 DAN 6)

2) 1 BLOK (TOWER 1 ) 96 TINGKAT YANG MENGANDUNGI:- RUANG PEJABAT 10 TINGKAT, PANGSAPURI PERKHIDMATAN 50 TINGKAT (744 UNIT) BESERTA DAN HOTEL 27 TINGKAT (516 UNIT) BESERTA KEMUDAHAN KEMUDAHAN

3) 1 BLOK (TOWER 2) 31 TINGKAT YANG MENGANDUNGI:- PANGSAPURI PERKHIDMATAN 22 TINGKAT (313 UNIT) BESERTA KEMUDAHAN KEMUDAHAN

4) 1 BLOK (TOWER 3) 59 TINGKAT YANG MENGANDUNGI:- PANGSAPURI PERKHIDMATAN 51 TINGKATAN (641 UNIT) BESERTA KEMUDAHAN KEMUDAHAN

5) 1 BLOK (TOWER 4) 81 TINGKAT YANG MENGANDUNGI:- PANGSAPURI PERKHIDMATAN 70 TINGKAT (1295 UNIT) BESERTA KEMUDAHAN KEMUDAHAN

6) 1 BLOK (TOWER 5) 81 TINGKAT YANG MENGANDUNGI:- PANGSAPURI PERKHIDMATAN 70 TINGKAT (1295 UNIT) BESERTA KEMUDAHAN KEMUDAHAN DI ATAS LOT 737, 738, 739, 740 DAN 471, JALAN PUDU, KUALA LUMPUR

Untuk Tetuan : TETUAN PROFIT CONSORTIUM SDN BHD, SUITE 1 TO 3, TINGKAT 31, MENARA KH, JALAN SULTAN ISMAIL, 50250 KUALA LUMPUR TEL 03-321489998/FAX 03-321489987

Kategori Projek : A - Projek Biasa
Jenis Pemajuan : A - Perumahan
Rancangan Tempatan (RT) :
Dikemukakan RT (Rancangan Tempatan) No. Lot : LOT 737, 738, 739, 740 DAN 471
Mukim: KUALA LUMPUR

Tarikh Permohonan : 17-Nov-2017

A13 (Kebenaran Merancang (KM)) : 57 hari , Lulus, 28-Nov-17 (11 hari)

This post has been edited by bb68: Mar 6 2018, 04:32 PM

All are services apartment and hotel...
no shopping mall is a bummer

This post has been edited by bb68: Mar 6 2018, 04:31 PM

oh ya, miss that..

The Robertson next to it is only half its height lol

I am puzzled why they still not start the construction work after getting KM back in November 2017. After KM approval, every minute count for a Construction Company.

KM = Kebenaran Merancang = Development Order = Approval to start a project.

BRIEF-Debao Property Development Updates On Proposed Sale Of Shares In Profit Consortium Sdn
Reuters Staff

1 MIN READ

April 12 (Reuters) - Debao Property Development Ltd :

* SHAREHOLDER OF PROFIT CONSORTIUM IN DISCUSSIONS WITH A CO FOR SALE OF 38% STAKE IN PROFIT CONSORTIUM

* EXPECTS A POSITIVE CASH FLOW FOR PLAZA RAKYAT PROJECT FOLLOWING PROPOSED SALE

Plaza Rakyat design...


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Yet another drama...

THE developer of Plaza Rakyat has until the end of September to settle its outstanding payments to City Hall, failing which its contract will be terminated.

Mayor Md Amin Nordin Abdul Aziz said an agreement had been reached to allow the developer to continue work on the abandoned project.

KUALA LUMPUR (September 3): Plaza Rakyat lot owners are unhappy that Kuala Lumpur City Hall (DBKL) has “washed its hands of” compensation of the stalled project.

Their pro tem committee secretariat Ng Pang Wah, 69 said they were not informed that DBKL is no longer involved, according to The Malaysian Insight (TMI).

“Why is DBKL claiming that they have nothing to do with us? When we bought the property, they were the landowner.

“How, can they say that they are not involved?”

DBKL has said that the new developer, as landowner, had no legal obligations towards the lot owners.

Quoted by TMI, Mayor Md Amin Nordin Abd Aziz said: “If the developer gets the approval, it can go ahead with the project even if it has not compensated the lot owners, and it is then up to the lot owners to take whatever actions against the developer.”

Ng said they have been informed that there is a compensation clause in the sale and purchase (S&P) agreement.

“All we are asking is for a fair deal.

“The developer definitely bought the property at market price, but they are offering the lot owners a refund of the sum they invested 20 years ago, which is not fair.

“Our investments had depreciated over the years. If we would have bought other properties in the city, it would have appreciated by now.”

The news portal reports that the developer has been given until the end of September to settle outstanding payments to DBKL, failing which its contract will be terminated.

Following the 1997 Asian financial crisis, the project in Jalan Pudu was abandoned.

Profit Consortium Sdn Bhd, a new developer, signed a S&P agreement with DBKL in 2015 to take over the 6.2ha site for a sum of RM740 million.

Ng said efforts to contact DBKL has not yielded results, and they are now looking to the new government with renewed hope.

“All we are asking is for a meeting with the developer. We are not asking for a fair compensation. We are all old and some have died.

“We don’t want to drag this matter to court and get tangled in a legal tussle.”

TMI reports that the lot owners have sent a letter to the Prime Minister’s Department, in hopes of meeting Federal Territories Minister Khalid Samad.

Plaza Rakyat is a mixed development comprising a 79-storey office tower, a 46-storey condominium block, a 24-storey hotel, and a seven-storey shopping centre.

The news portal reports that since January, 104 of the 211 original buyers have been issued offer letters by the new developer and negotiations are ongoing.

SELAK

Apabila Dr. Mahathir Mohamad melawat Terminal Bersepadu Selatan (TBS) di Bandar Tasik Selatan baru-baru ini, selepas dibuka pada 1 Januari 2011, timbul cerita mengenai projek Plaza Rakyat yang terbengkalai. Isu ini timbul kerana Plaza Rakyat dibina pada era Perdana Menteri Keempat. Plaza Rakyat dirancang sebagai hab pengangkutan awam bagi menggantikan Pudu Raya yang menjadi hentian pengangkutan awam dari seluruh pelusuk negara. Disebabkan kesesakan di situ, maka Plaza Rakyat dicadangkan untuk menggantikan Pudu Raya.

Sebuah padang permainan bersebelahan Pudu Raya diambil alih dan dijadikan tapak projek. Kini padang yang dulu menjadi tempat rekreasi bagi warga kota bertukar wajah kepada hutan batu yang menyakitkan mata memandang. Ada yang berkata kawasan itu kini menjadi tempat pembiakan nyamuk aedes. Kalau betul dakwaan itu, Dewan Bandaraya Kuala Lumpur (DBKL) jangan lupa melakukan pemeriksaan berkala. Jangan kawasan kediaman lain jadi tumpuan untuk mencegah denggi, tetapi kawasan di tengah-tengah kota terlepas pandang.



Hari ini Plaza Rakyat hanya wujud pada nama sahaja, menumpang di stesen Transit Aliran Ringan (LRT). Mungkin kalau tidak dinamakan Stesen Plaza Rakyat, orang ramai terutama generasi baharu tidak tahu wujud projek terbengkalai di situ. Plaza Rakyat adalah tinggalan konkrit usang, berkarat, berdaki, berlumut dan macam-macam lagi. Mujurlah Pudu Raya tidak diruntuhkan serentak dengan pelancaran Plaza Rakyat, jika tidak semakin hodohlah kawasan itu. Pudu Raya masih bertahan walaupun namanya sudah bertukar kepada Pudu Sentral dan kemudiannya sebagai Pusat Transformasi Bandar Kuala Lumpur (UTC).

Pudu Raya masih hidup dengan pelbagai aktiviti walaupun tidak sesibuk masa lalu. Panorama buruk kawasan pembangunan Plaza Rakyat boleh dinikmati di bangunan tinggi sekitar kawasan itu malahan boleh dilihat jika anda menaiki LRT yang melintasi stesen Plaza Rakyat. Bagi para pelancong atau mereka yang berada di puncak Menara KL juga boleh menikmati suasana hodoh ini. Dari atas menara, jika ternampak satu kawasan buruk umpama tinggalan perang atau bencana berhampiran Stadium Negara, maka itulah ‘Plaza Rakyat’ yang tidak menjadi kenyataan.

Sejak bila Plaza Rakyat terbengkalai? Menyelak kembali sejarah, projek ini mula dibina pada tahun 1992 dengan anggaran kos RM1.2 bilion. Plaza Rakyat dikatakan akan menjadi bangunan kedua tertinggi di Kuala Lumpur selepas Menara Berkembar Petronas. Terdapat beberapa komponen pembangunan plaza ini. Khabarnya, mengikut pelan asal, menara tertinggi di sebelah barat plaza itu akan mempunyai 79 tingkat ruang pejabat, disambung dengan menara setinggi 20 tingkat di timur dengan menerusi blok podium setinggi enam tingkat. Ketinggian keseluruhan Plaza Rakyat (termasuk menara telekomunikasi) adalah 382 meter. Ruang seluas 6.6 juta kaki persegi akan terhasil apabila ia disiapkan merangkumi ruang perniagaan, pusat pengangkutan awam, hotel dan pejabat. Ia juga akan mempunyai tujuh panggung wayang, pusat hiburan, hotel empat bintang dengan 415 bilik dan 315 unit apartmen.



Akibat kegawatan ekonomi pada tahun 1997, projek yang dijangka siap sepenuhnya pada Mei 2007 terbengkalai. Pelbagai langkah diambil bagi memulihkan projek itu tetapi gagal dan masih terbengkalai sehingga ke hari ini. Ketika banyak projek lain yang lebih besar dirancang selepas itu siap mengikut jadual, Plaza Rakyat terus membatu tanpa perkembangan. Begitulah kisah duka Plaza Rakyat.

Apakah kesudahannya projek ini? Pada Oktober 2015, Dewan Rakyat diberitahu, sebanyak RM40 juta diperuntukkan untuk menyelesaikan masalah 211 pembeli projek Plaza Rakyat yang terbengkalai itu. Menteri Wilayah Persekutuan, Tengku Adnan Tengku Mansor berkata, syarikat Profit Consortium Sdn. Bhd. dilantik untuk membangunkan semula Plaza Rakyat dan dijangka memasuki perjanjian jual beli dengan DBKL pada bulan November 2015.

“Harga jualan yang ditawarkan bagi tapak Plaza Rakyat kepada pembeli ialah RM740 juta iaitu RM700 juta bagi ‘outright sale’ tanah, manakala bakinya akan digunakan untuk menyelesaikan masalah pembeli lama projek itu,” kata Tengku Adnan ketika menjawab soalan Fong Kui Lun (DAP-Bukit Bintang) yang meminta penjelasan mengapa DBKL masih gagal memulihkan projek terbengkalai Itu. DBKL telah melalui proses perundangan yang panjang dalam menyelesaikan isu Plaza Rakyat yang terbengkalai dan masalah kewangan dihadapi Plaza Rakyat Sdn. Bhd. (PRSB). Susulan itu tapak projek diserahkan kepada DBKL pada 6 November 2014.

“Dengan pelantikan syarikat baharu ini (Profit Consortium Sdn Bhd), diharapkan isu projek yang terbengkalai dapat dipulihkan,” katanya seperti dilaporkan Bernama. Itu setakat 2015, maknanya setelah 18 tahun.

Pada Mei 2016, Timbalan Menteri Wilayah Persekutuan, Dr. Loga Bala Mohan ketika bercakap di lobi Parlimen berkata, projek Plaza Rakyat terbengkalai dijangka mula dibangunkan pada Jun tahun berikutnya. Namun pihaknya harus menyelesaikan urusan tuntutan kepada semua pendeposit projek itu terlebih dahulu sebelum dapat membangunkan plaza berkenaan.

Sekarang dah masuk tahun 2019, maknanya sudah 22 tahun. Adakah projek Plaza Rakyat akan terus terbiar begitu sahaja? Sejauh mana peranan DBKL dalam menghadapi pemulihan projek ini? Bolehkah DBKL ‘lepas tangan’ terhadap projek ini?



Sesuatu perlu dilakukan bagi menamatkan penantian Plaza Rakyat. Mungkin kerajaan Pakatan Harapan pimpinan Dr. Mahathir dapat membawa harapan baharu bagi membantu menyelesaikan apa juga kemelut yang melanda projek berkenaan. Inilah peluang PM Ke-7 memulihkan projek era PM Ke-4. Satu keputusan yang tegas dan muktamad perlu dibuat supaya ia bukan sahaja menyelesaikan masalah pemaju, pemilik dan pembeli tetapi juga orang ramai yang tidak senang dengan pemandangan ini. Tidak wajar pemandangan buruk itu dibiarkan terus kekal. Nak buat monumen pun tidak sesuai.

Semua pihak perlu memberi kerjasama bagi menamatkan kemelut ini. Pilihan yang ada hanya dua iaitu meneruskan projek berkenaan atau membatalkannya. Meneruskan projek itu sudah tentu memerlukan pengubahsuaian terhadap komponen projek itu termasuk pusat pengangkutan awam. Ketika ini hab pengangkutan awam telah beroperasi sepenuhnya dengan baik di TBS. Dengan rangkaian hubungan melalui LRT, komuter dan ERL, serta kesesuaian semasa, Plaza Rakyat tidak lagi sesuai untuk menjadi pusat pengangkutan awam.

Satu perkara lagi yang perlu diberi perhatian ialah sama ada selepas terbiar selama 22 tahun, struktur yang sudah terbina itu masih dalam keadaan selamat?

Jika tidak ada jalan keluar, struktur yang sudah terbina itu eloklah diruntuhkan sahaja. Meruntuhkan bangunan bukanlah sesuatu yang sukar. Sebelum ini beberapa bangunan termasuk flat dan pusat perniagaan diruntuhkan untuk memberi laluan kepada projek lain. Apa yang penting kata pemutus pihak-pihak yang terlibat. Mustahil, masalah ini tidak ada jalan keluar.

Amat merugikan lokasi yang bernilai tinggi itu terbiar tanpa sebarang hasil. Semoga dengan kebijaksanaan dan keprihatinan kerajaan yang ada pada hari ini termasuk menteri yang baharu, projek ini dapat diselamatkan. Projek-projek seumpama ini juga perlu diberi perhatian untuk diselamatkan.

— BebasNews

Debao unit to sell stake in loss-making Malaysia business for 4m yuan
MON, APR 29, 2019 - 10:18 AM
The Business Times
FIONA LAMfiolam@sph.com.sg@FionaLamBT


DEBAO Property Development is proposing to sell a 43 per cent stake in Malaysia’s Profit Consortium (PC) for four million yuan (S$808,793) to Chinese management services firm Guangzhou Xu Zhuo Enterprise Management.

Debao, a Singapore-based developer of residential and commercial properties in China, intends to use the entire proceeds from the proposed disposal for working capital, it said in an exchange filing on Monday before the market opened.

The proposed disposal is an opportunity for Debao to divest its loss-making business, as PC has been incurring significant losses since 2016 - with net accumulated losses amounting to RM7.8 million (S$2.6 million) as at Dec 31, 2018 - due to the high finance cost for its Plaza Rakyat project.

Debao’s wholly owned subsidiary, Pavillion Treasures Land and Development, on April 26 entered into a sale and purchase agreement (SPA) with the buyer, Guangzhou Xu Zhuo, and guarantors Guangdong Debao Property Investment and Guangzhou Xiang Chun Enterprises Management for the disposal.



Through Pavillion Treasures, Debao owns a 62 per cent interest in PC, while the remaining shares are held by independent third party shareholders.

SEE ALSO: Stocks to watch: SIA, Keppel Corp, IEV, Global Invacom, Debao
After the proposed disposal, Pavillion Treasures will hold a 19 per cent interest in PC.

The parties to the SPA also agreed that the buyer, Guangzhou Xu Zhuo, will loan 136 million yuan to PC as working capital for the repayment of PC’s accounts payables.

PC is to continue with the development of the Plaza Rakyat project – a large-scale integrated development comprising residential units, a five-star hotel, a budget hotel, offices and a shopping mall.

PC finalised the development plan in 2017 and started repair works of the existing development on the land for the project, but the works have been delayed due to PC’s cash flow difficulties in funding the Plaza Rakyat project and/or working capital requirements, Debao said in the filing on Monday.

For the Plaza Rakyat project, PC entered into a SPA in October 2015 with Datuk Bandar Kuala Lumpur to acquire five Malaysian land parcels in central Kuala Lumpur for a total of RM700 million, excluding pension and interest for late payment.

Debao said it faces a strained cash flow due to tightened monetary policies by the Chinese government to curb liquidity and higher bank statutory reserves. As a result, the amount of funds available to commercial banks in China to lend to businesses including Debao has decreased. Interest rates have also risen, leading to higher finance costs.

Debao requires “significant capital injection” to fund the development of its other projects, it said. In the meantime, the sale of PC would provide working capital to fund the property development projects, reduce the group’s liabilities and strengthen its financial position as a whole.

The acquisition price of four million yuan was determined based on arm’s length negotiations between the buyer and Pavillion Treasures. In arriving at the price, both parties took into account, among other factors, the cash flow, value of the assets held by PC and the payment deadlines faced by PC with respect to the Plaza Rakyat project.

Debao Property Development shares were trading at S$0.10 as at 9.57am on Monday, up 2.2 Singapore cents.

NEWS EdgeProp.my / May 11, 2019
Plaza Rakyat project to restart soon


China-based Guangzhou Xu Zhuo Enterprise Management Co Ltd, who are expected to pay the outstanding debt due to DBKL.


Work on the long-abandoned Plaza Rakyat project in Jalan Pudu, Kuala Lumpur is expected to begin soon, A 43% stake in the developer - Profit Consortium Sdn Bhd is being bought by China-based Guangzhou Xu Zhuo Enterprise Management Co Ltd, who are expected to pay the outstanding debt due to Kuala Lumpur City Hall (DBKL)

“The Plaza Rakyat project is being taken over by a new consortium, which finalised its takeover at end-March. It has also contacted DBKL (to) pay the amount outstanding (by Profit Consortium) and is expected to start work soon,” Minister of Federal Territories Khalid Abdul Samad said, speaking to The Edge.

The stake in Profit Consortium is being sold for RMB4 million (RM2.4 million) from Singapore-listed Debao Property Development Ltd Profit Consortium, which had problems in funding the project.

Profit Consortium bought the partially completed Plaza Rakyat project in 2015. Comprising five parcels of leasehold land totalling 29.64 acres, it was purchased from DBKL for RM700 million, much of which remains unpaid.

The publication reports that in an announcement to the Singapore Stock Exchange (SGX) on April 29, Debao said that as at Feb 21, Profit Consortium had paid DBKL the first instalment of RM70 million, part of the second instalment amounting to RM20 million, which was due on March 31 (from the total amount due of RM140 million) and late payment interest of RM11.31 million.

“The third, fourth and fifth instalments of RM150 million, RM150 million and RM190 million respectively, are payable after the building plan has been obtained,” Debao says, adding that Profit Consortium also owes pensioners RM7.36 million under a government contract.

Khalid says that Profit Consortium has also paid RM70 million of the RM140 million due from the second instalment. “It has already paid half (of the RM140 million) and the balance will be paid by the end of this month,” he is quoted as saying.

Guangzhou Xu Zhuo, as part of the deal. will loan RMB136 million to Profit Consor­tium as working capital for the repayment of the company’s accounts payable.

The publication cites the Companies Commission of Malaysia (SSM) website, which shows Profit Consortium’s total liabilities for the financial year ended Dec 31, 2017 (FY2017) stood at RM129.1 million, all of which were current.

In 2017, the development plan for Plaza Rakyat had been finalised, and repair works to the existing development on the land had commenced, but work was halted due to cash flow difficulties to fund working capital requirements.

The project is a large-scale mixed-use development that includes high-quality residential units, a five-star hotel, a budget hotel, offices and a large-scale shopping mall. A 96-storey skyscraper and two 81-storey towers is revealed in an earlier development proposal submitted to DBKL.