East Coast Rail Line (ECRL) may cost RM70b

By Sharen Kaur
Published in NST, May 3 2016

KUALA LUMPUR: THE proposed East Coast Rail Line (ECRL) that will link Kuala Lumpur and three east coast states in Peninsular Malaysia is expected to cost between RM60 billion and RM70 billion, say sources.
 
  The ECRL will be Malaysia's biggest rail development project, spanning around 600km. By comparison, the high-speed rail project between Kuala Lumpur and Singapore has a total length of 350km.
 
  According to sources, the ECRL, which will be developed in three major phases, has attracted a large number of global companies and consortia, which are planning partnerships with local firms.
 
  "The ECRL could take 15 to 20 years to develop as it will involve a lot of underground tunnelling. A special purpose vehicle (SPV) will be formed. The SPV will play a similar role as MyHsr Corp Sdn Bhd for the HSR project," said sources.
 
  Land Public Transport Commission (SPAD) chairman Tan Sri Syed Hamid Albar said the ECRL would be developed with more than 500km of new tracks between Kelantan, Terengganu, Pahang and Kuala Lumpur.
 
  He said the project would involve a totally new line based on standard gauge.
 
  "The cost (of the project) has not been finalised as it is still under study. The model to be adopted will be decided later on," said Syed Hamid told Business Times.
 
  More than 55 per cent of rail lines in the world are based on standard gauge. Rail track gauge refers to the spacing of the rails on a track. Having a common gauge can facilitate inter-connectivity and inter-operability.
 
  Business Times had previously reported that the ECRL line might start either from the integrated transport terminal in Gombak, Batu Caves, or Serendah in Selangor.
 
  It would enter Pahang, stopping at Bentong, Mentakab or Temerloh, Maran and Gambang before heading on to the Kuantan Sentral station and then to the Kuantan Port.
 
  From there it will go into Terengganu, stopping at Kemaman, Kertih, Paka, Dungun, Ajil, Kuala Terengganu, Penarik and Kampung Raja.
 
  It will then move to Kelantan, passing Tok Bali, Jelawat and Kota Baru, before reaching its final stop in Tumpat.
 
  However, sources said Phase 1 could commence from Port Klang towards Bentong and onwards as the government was looking to enhance port and other economic activities in the east coast.
 
  The East Coast Economic Region Development Council (ECERDC) had established that a rail route connecting all the major ports, business centres and towns in Pahang, Terengganu and Kelantan was vital to achieve growth in the region.
 
  Prime Minister Datuk Seri Najib Razak had said in 2012 that the ECRL would provide a major boost for investors as businesses could significantly reduce costs with the cost-effective and efficient mode of transport.
 
  ECERDC and SPAD, which play a central role in improving road and rail-based public and freight transport in the country, recently launched an exercise to gauge market interest and seek views and ideas for the ECRL.
 
  The joint market study via a Request for Information (RFI) was designed as a consultation exercise to seek industry opinion and collate market feedback.
 
  SPAD chief executive officer Mohd Azharuddin Mat Sah said the RFI was open to companies and consortia interested in participating in ECRL's railway design, funding, construction, operations and maintenance across the supply chain.
 
  The deadline for submission for the RFI exercise is May 27 before 12pm.

Section 52 to come into bloom

By Sharen Kaur
Published in Business Times, May 3 2016

PETALING JAYA: SECTION 52 in Petaling Jaya, Selangor is transforming into a vibrant green township with character and charm, and the driver is PJ Sentral Garden City.
 
  PJ Sentral is a mixed-use project by Malaysian Resources Corp Bhd (MRCB) with a gross development value (GDV) of about RM11 billion.
 
  It sits on 16ha in Persiaran Barat (behind Hilton Petaling Jaya Hotel) which previously housed the Selangor State Development Corporation headquarters and other buildings.
 
  MRCB says it will take more than eight years to redevelop, revitalise (transform to a new image) and rehabilitate (preserve the identity) Section 52.
 
  PJ Sentral is poised to become a new central business district in Selangor, serving as a catalyst for future redevelopment projects in the area.
 
  There is also a new project planned by KUB Malaysia Bhd next to PJ Sentral.
 
  KUB Malaysia is going to transform its iconic A&W restaurant into a transit-oriented development (TOD), with construction expected to commence next year.
 
  The A&W restaurant, which has been operating for more than three decades, is located on 0.5ha plot in Lorong Sultan, opposite AmCorp Mall.
 
  KUB Malaysia wants to redevelop the site as a TOD to maximise the land value.
 
  The company had previously planned to build KUB Towers, comprising an office tower with a GDV of RM260 million.
 
  KUB Malaysia group managing director Datuk Abdul Rahim Mohd Zin told Property Times that the A&W restaurant would be demolished earliest by the second half of next year.
 
  "We are re-visiting the building plan for the site. Realistically, we hope to start construction in the third or fourth quarter of next year, subject to approvals," he said.
 
  A TOD is a mixed-use residential and commercial project designed to maximise access to public transport.
 
  The first TOD builder in Malaysia is MRCB, which built the KL Sentral integrated transport hub in Brickfields, Kuala Lumpur.
 
  The biggest TOD developer currently is Prasarana Malaysia Bhd, which has more than 10 sites under development or in the pipeline.
 
  Prasarana is the asset owner and operator of the country's two light rail transit (LRT) networks (Ampang and Kelana Jaya) and the KL Monorail.
 
  Rahim said KUB Malaysia would talk to Prasarana on its plan to link the TOD to the Taman Aman LRT station.
 
  "We are looking at how to create a useful value proposition for the land as we are located next to the Taman Aman LRT station, about 50m away.
 
  "We are still planning how we want to link the TOD to the LRT station. It could be via a walkway or pedestrian bridge."
 
  Rahim said the TOD would be commercially-driven. It might have one or two towers atop a retail podium, he added.
 
  "If we can construct two towers, then the second building may include some apartments. If it's just going to be one tower, then it will be fully commercial. We are upbeat on prospects of the office market here."
 
  He said the proposed TOD was expected to generate a GDV of more than RM250 million for KUB Malaysia and its development partner.
 
  Rahim said KUB Malaysia would call for tenders for a development partner as early as next year.
 
  "We do not want to undertake a property development project. It is more of realising our property investment asset. We will give them the development rights for the project where we remain as the landowner, and they do the construction and development.
 
  "We don't want to develop the land in a joint venture as we don't want to take the risk of the development."
 
  Rahim said KUB Malaysia would submit the development and building plans to the authorities this year.
 
  He said the company was still finalising the details and would engage an architect soon.
 
  "We are discussing the maximum plot ratio. The standard rule is 1:4 and we are looking at a plot ratio of 1:6," he added.

China developers keen on Finance Ministry land in KL

By Sharen Kaur

KUALA LUMPUR: Property developers from China have expressed interest to bid for government land here which has a reserve price of RM750.3 million, or RM900 per square feet.
 
  The Minister of Finance Inc (MOF Inc) is selling 7.74ha of land in Jalan Lembah Ledang (fronting Jalan Tuanku Abdul Halim, previously known as Jalan Duta).
 
  The land will be developed into a commercial development.
 
  According to property experts, the proposed commercial development is expected to generate between RM5 billion and RM8 billion in gross development value (GDV). This is based on a plot ratio of 1:5.
 
  "If you look at the current market value, the land should fetch more than RM5 billion in GDV, depending on product type. I believe we are looking at office towers, hotels, a mall and, possibly, serviced apartments. This is prime freehold land in a mature area," one of them told Business Times.
 
  Within 5km radius is Istana Negara, Publika Shopping Gallery, Matrade Exhibition and Convention Centre and the Kuala Lumpur Courts Complex.
 
  The land is some 10km to the city centre and Bangsar.
 
  Sources said MOF Inc will target not only the highest bidder for the land but also one which could sustain the vibrant atmosphere with new and exciting concepts.
 
  "Once the tender closes and the proposals go through the final selection, it will be brought to the cabinet for approval," said the source.
 
  Malaysia has been the darling of Chinese developers since 2013 when they actively started to buy land in the Klang Valley and southern Johor.
 
  It started with Guangdong-based Country Garden, a top 10 Chinese developer, which bought land in Iskandar Malaysia.
 
  The Iskandar hot spot then attracted R&F Properties and Greenland Group, where the firms invested nearly 50 billion yuan (RM30 billion).
 
  Meanwhile, Hong Kong-listed Agile Property Holdings Ltd has partnered PJ Development Holdings Bhd to acquire land in Mont Kiara for RM186 million.
 
  They are building Agile Mont Kiara, which has 11 residential towers worth RM1.2 billion.
 
  It is understood that apart from the Chinese developers, there are also Malaysian builders and other foreign firms which are interested in the MOF Inc land.
 
  They had attended a briefing on Tuesday in Putrajaya.
 
  Tender documents for the land can be purchased until May 6.
 
  The closing date for the tender is at noon on May 9.