S
OMETHING’S brewing in Bandar Kinrara, a freehold township development by Perumahan Kinrara Bhd (PKB) in Puchong, Selangor.
It is reported that PKB is planning to redevelop a 3.43ha piece of land, currently home to the Kinrara Academy Oval, as a commercial project.
Rumours are rife that the Kinrara Golf Club (KGC) right next door to Kinrara Resort may also be redeveloped by PKB. KGC houses an 18-hole golf course and club house.
“There are talks that the golf resort, which is about six to seven times bigger than Kinrara Oval, will make way for a massive mixed-use project that can easily generate more than RM1 billion in gross development value,” said sources with knowledge in the matter.
PKB is a joint venture between I&P Group Sdn Bhd, Lembaga Tabung Angkatan Tentera and Lembaga Tabung Haji.
I&P Group, in turn, is a wholly-owned subsidiary of SP Setia Bhd. SP Setia bought I&P Group last year in a cash deal worth RM3.65 billion from Permodalan Nasional Bhd (PNB) and Amanah Raya Trustees Bhd (as trustee for PNB’s unit Amanah Saham Bumiputera).
Both PNB and Amanah Raya Trustees are also SP Setia’s direct major shareholders.
PKB has been developing Bandar Kinrara, which has a land space of 770ha, since 1991. When fully completed, it will have a total of 14,500 homes.
The presence of Kinrara Oval, an international cricket stadium, and KGC have increased the property value in Bandar Kinrara and its surrounding neighbourhood.
Property portals show that double-storey terraced houses there are selling from RM658,000 to RM1 million (built-up from 1,800 to 3,000sqft).
Semi-detached houses are selling from RM1.5 million to about RM3.5million. The prices depend on size and location.
“People bought houses in Bandar Kinrara because of the green lung. They have been enjoying a great view for years. However, with the proposed redevelopment of Kinrara Oval and KGC, it is possible that not only will the value of properties fall, there may more traffic in the area.
“Traffic right now is already a nightmare for residents,” said a source.
15-YEAR LEASE TO MCA
PKB had leased the Kinrara Oval land to the Malaysian Cricket Association (MCA) for 15 years.
It expired on Oct 31 and MCA have been told to vacate the premises, which have been housing its headquarters, national players’ hostel, training ground and media centre since 2004.
It is reported last month that the land will be reclaimed by a PNB subsidiary.
MCA has been trying to save Kinrara Oval.
Sources told NST Property that PKB wants the land back and intends to re-zone it for commercial use.
“This is contrary to the original plan as it was supposed to be a green lung and an area for sports. When MCA entered the lease, it was with the understanding that during the 15-year period, the land will be transferred to MPSJ.
“Somehow, 15 years have passed and we understand that the land has yet to be transferred.
“Because it is a green lung, there’s no commercial value to the land. This is community land. PKB is not supposed to use it for commercial purposes,”
said the source.
The MCA has invested millions to build Kinrara Oval. The association is spending about RM500,000 annually on maintenance and ensuring that its pitch is up to international standards.
Since the lease expired, MCA is waiting for a progress report from the Youth and Sports Ministry on the matter.
PKB: LAND EARMARKED FOR DEVELOPMENT
The developer had issued a statement last month saying that the land has always been earmarked for development.
It said MCA had, from the beginning of the lease in 2004, been made aware that the use of the land was only temporary and they would need to eventually find their own permanent place.
“PKB is merely requesting for the return of the land. MCA has been given ample notice as the developer wishes to start work on the land.”
PKB claimed that MCA had also run up a sizeable sum of debt to the company.
“The matter is currently being moderated by the National Sports Council of Malaysia,” it said.