KUALA LUMPUR: Investment in the real estate sector is a long-term strategy to strengthen the financial position of the Malaysian Army Veterans Foundation and fulfil its operational needs.
Senior Minister (Security Cluster) Datuk Seri Ismail Sabri Yaakob said this would provide funds needed to channel aid to veterans and their families, thus reducing their financial dependence towards the government.
Speaking at the ground-breaking of the foundation's 51-storey project on Lot 2008 near Jalan Tun Razak, he also expressed his gratitude to Pasukhas Development Sdn Bhd for their joint venture with the foundation to realise the development.
"Looking back, the land ownership application for this plot of land was made by the Army Veterans Foundation in 2005, and was met with failure several times before the issue with premium payment was finally resolved in 2018.
"I would like to congratulate the foundation for continuing to work hard towards realising this dream through the creation of new opportunities and investments for a brighter future for the veterans and their dependents," he said.
The project with a cost of RM250 million, will have a mixed-development concept comprising office space, commercial areas and service apartments, and is estimated to be completed by end-2023.
Ismail Sabri said through this project, the foundation would receive returns in kind and in cash, including 58,000 sq ft lettable office space, a 3,000 sq ft fully furnished office for the
foundation and 25 parking lots.
He said the foundation would also receive a fully-fitted multipurpose hall with a capacity of 420 people, a pre-function room, and cash of RM2 million to paid in instalments of RM500,000 per year for four years.
"Apart from that, in the future, the foundation is expected to earn a gross income of RM3 million a year through the rental of offices and the
multipurpose hall.
"I believe that through this joint venture, Pasukhas Development Sdn Bhd may consider additional returns to the foundation such as additional car parks and business space," he added.
The building, he said, was also strategically located, with infrastructure support connecting businesses to leading shopping malls, international-standard hotels, reputable convention centres and nearby medical centres.
Ismail Sabri said many other developments were being planned in the nearby area, including the Kuala Lumpur City Hall's River of Life project.
"Surely, the project will give good returns to the Army Veterans Foundation and will become something the veterans can be proud of," he added.
Also present at the ground-breaking were Defence Ministry secretary-general Datuk Seri Muez Abd Aziz, Armed Forces chief General Tan Sri Affendi Buang, Armed Forces Veterans Affairs Department director-general Major Gen Datuk Dzulkarnain Ahmad and Pasukhas Development Sdn Bhd chief executive officer Wan Thean Hoe.