THE KTM Bhd (KTMB) quarters in Bangsar, Kuala Lumpur, will finally undergo redevelopment and the new project will have an estimated gross development value (GDV) of RM3 billion.
According to Railway Assets Corp (RAC) general manager Azhar Ahmad, the corporation is planning a mixed-used transit-oriented development (TOD) on the 5.26ha freehold land.
“Currently occupying the land are quarters that were home to over 1,000 KTM Bhd workers. We are looking at unlocking the value of the land with a reputable developer. There is so much potential right now with land scarcity in the Bangsar area... This is the best time to start the redevelopment.
“We will call for the best proposals from developers this year. We want to maximise the land use since it is 13 acres (5.26ha).
“We are looking at building two hotels, office towers, are tail mall and affordable houses that include apartments. The affordable homes will sell from RM350,000.Ahotel will do well there as the location is just a stop away from KL Sentral via the Bank Rakyat-Bangsar LRT station,”Azhar told NST Property.
He said the redevelopment may take about 10 years for full completion and expects it to start this year or in 2020.
The Bangsar land is part of the nine parcels of land that RAC has identified for redevelopment — mostly to be based on the TOD concept.
RAC has experience in TOD developments with the completion of a project with SP Setia Bhd for the Abdullah Hukum light rail transit station in KL Eco City.
RAC also has started a TOD venture with MKH Bhd for Kajang 2, a new township located in the vicinity of Kajang, Selangor.
RAC RICH WITH VALUABLE LAND
RAC owns 15,378ha of land along the KTM railways and in prime areas. Some 80 per cent of the land has been used to build 1,650km of tracks from Padang Besar to Johor Baru and Tumpat to Gemas, 170 stations, 16 depots and warehouses.
Only 20 per cent comprising railway reserve and title land has potential to be developed.
Azhar has said RAC can develop the reserve land and is working with the respective states to get the title and develop the land along the tracks.
RAC plans to undertake TODs and transit supportive developments (TSD) to enable the corporation to re-invest in the railway industry and improve railway stations and tracks, as well as help KTMB buy rolling stock and do maintenance for the existing assets.
The corporation owns assets worth RM17.09 billion. They include land, infrastrucure, buildings, rolling stock, office equipment, machinery and ticketing system.
One of the most exciting projects for RAC is the land next to Bank Negara Malaysia which will be developed viaajoint venture with developers.
RAC has a 2.8ha plot adjacent to the central bank and it plans to build office towers, institutions and training centres.
According to Azhar, the project will take about five years to be fully developed.
“The estimated GDV for this development is about RM1.5 billion. We will sell and lease the buildings for recurring income. We are quite upbeat on this development due to its location next to Bank Negara.”
RAC will also developa1.2ha site in Ampang, Kuala Lumpur, and 5.7ha in Bukit Mertajam in Seberang Prai, Penang, in partnership with developers.
The Ampang land is located behind Glenagles Kuala Lumpur and will have a standalone development, said Azhar.
“We are looking at developing two towers with a plot ratio of seven. There will be more than 1,000 units of apartments and the expected GDV is around RM1.5 billion.”
In Bukit Mertajam, RAC is planning a TOD that consists of office towers, hotels, retail and apartments.
Azhar said the project would have a GDV of RM1.5 billion and take between five and 10 years to be fully developed.
A TSD FOR SHAH ALAM?
RAC owns 5.3ha of land in Batu 3, Shah Alam, and is looking at a TSD-based project.
“A TSD focuses on community living. It creates a pedestrian-oriented environment. The land we have is sandwiched between Bukit Subang Jaya and Batu 3 rail stations. It has high potential for apartments and commercial (offerings) but the focus will be on residential development. The idea is to bring the community together for a healthy lifestyle,” said Azhar.
He said the project is expected to take three to five years to develop with an estimated GDV of RM500 million.
“There are so many options to work along with developers. We will study the best option for the development,” added Azhar.