“Under the joint development authority with UDA to undertake the project, UDA shall grant to BBCC the development rights. The potential gross development value to be generated from the project is about RM8bil.”
UDA to get RM1bil as development rights for Bukit Bintang City Centre
Under the joint development authority with UDA to undertake the project, UDA shall grant to BBCC the development rights. The potential gross development value to be generated from the project is about RM8bil.
“The project will feature residential and commercial towers, a one million sq ft mall that will rival nearby malls KLCC Suria and Pavilion, a retail centre, an entertainment hub, a Malaysian grand bazaar, a food strip and even a hotel.”
KUALA LUMPUR: Despite the number of development projects around Kuala Lumpur’s main shopping and entertainment district, it is UDA Holding Bhd’s Bukit Bintang City Centre (BBCC) that is poised to take centre stage provided it can manage the negative perceptions linked to the project site.
Given that BBCC is to come up on the site of the old Pudu Jail, UDA has wisely sought to distance the mega development from its grisly past by leveraging on the Bukit Bintang name even though the land is actually in Pudu, albeit a stone’s throw from its upmarket cousin.
Bukit Bintang has long been Kuala Lumpur’s most prominent retail and entertainment belt that is home to many landmark shopping centres, al fresco cafés, swanky bars, night markets and hawker-type eateries. The arrival of a stellar development like BBCC will further boost the popularity of the district.
To ensure its success, UDA has roped in two other prominent players – Eco World Development Group Bhd and Employees Provident Fund (EPF) – to jointly develop and establish BBCC as the new landmark in the Bukit Bintang vicinity.
UDA and Eco World will each have a 40% stake while EPF will hold 20% in the consortium, a shareholding structure that is similar to the Battersea redevelopment in London.
However, there are many details yet to be ironed out, according to sources, and this is the reason why UDA has not revealed the actual design of BBCC though there are apparently several masterplan design options floating around in cyberspace. UDA has also not stated the timeframe for the completion of the project.
The 7.85ha plot will be transformed into an iconic mixed development with a gross development value (GDV) of RM10 bil. It will house seven blocks of buildings for commercial and residential use, office towers, a hotel and shopping complex, that is, if the current plans hold true.
The project will feature residential and commercial towers, a one million sq ft mall that will rival nearby malls KLCC Suria and Pavilion, a retail centre, an entertainment hub, a Malaysian grand bazaar, a food strip and even a hotel.
The centrepiece is an 88-storey signature tower to resemble Dubai’s Burj Khalifah, according to UDA chairman Datuk Johari Abdul Ghani. One third of the tower will feature strata title offices, and the rest will include up to 400 hotel rooms and condominiums, he says.
The BBCC is an ambitious development given the current slowdown in the property market, says a property observer.
“The National Property Information Centre’s (Napic) statistics show that the number of property transactions has been dropping since 2011. There were 430,400 transactions in 2011 as compared to 427,520 in 2012 and 381,120 last year. Between 2011 and 2013, [there was] an 11% drop,” he says.
“And property developers are still seeing a drop in transactions, especially with the GST (Goods and Services Tax) looming over the horizon,” he says.
However, independent global property consultancy Knight Frank has a different view. “The slowdown in the property sector cannot be seen as a generic whole. It is diverse as there are many components of property. You have the residential, commercial, retail and office markets and each is moving at a different pace,” says Knight Frank Malaysia managing director Sarkunan Subramaniam.
“But if the location is good, then the project should do well. BBCC is located on a very strategic location on the corner of Jalan Imbi and Jalan Pudu. That is a prime location,” he says.
Another property observer agrees with Sarkunan, saying the property market is cyclical in nature. “We saw downturns in 1998, 2002, 2005 and 2009 prior to this current slowdown. This is, of course, was tied to the economy of this nation,” he says.
“But we must remember that the construction of the BBCC has barely started. By the time it is completed, the property market would swing to the other end of the cycle. And if the market is depressed now, buyers and investors may find better deals,” he says.
There are, of course, many other projects in close proximity that may give BBCC a run for its ringgit. These include the Tun Razak Exchange (TRX) and possibly Plaza Rakyat, which is believed to be finally rescued.
The question is whether these major developments will have a major impact on BBCC. “The Tun Razak Exchange and BBCC are on the opposite ends of Bukit Bintang. This will benefit Bukit Bintang and enhance the shopping and entertainment district of Kuala Lumpur,” says Sarkunan.
“There are many end-investors so I don’t see the two projects competing with one another. They will have differences in pricing, affordability, offerings and diverse range of products which will appeal to different investors,” he says.
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