Jiankun International Bhd, a real estate developer, is restarting its project to renovate Kampong Bharu in Kuala Lumpur, citing the improved outlook for the real estate market as a result of the recovery of the economy.
The organization claimed that on June 16, Menara Rezeki Sdn Bhd (MRSB) and Jiankun International Bhd signed a contract for the project to be carried out by their joint venture (JV) company, Menara Rezeki Properties Sdn Bhd (MRPSB).
For the current owners of the Flat PKNS Jalan Tun Razak in Kampong Bharu, 52-story apartment buildings will be constructed, while Towers 1, 2, and 3 are mixed developments containing residential and retail units.
Jiankun stated in a filing with Bursa Malaysia that it is purchasing a 70% ownership in MRPSB for RM700,000, with the other 30% staying with MRSB.
According to Jiankun executive director and chief executive officer Edwin Silvester Das, "We are certain that the rehabilitation project will be a success as the reopening of the economy would boost the property sector."
In a statement, he continued, "It will also strengthen the group's intentions to broaden its real estate project, while the rehabilitation plan will also revitalise the Kampong Bharu region."
According to Edwin, the endeavour is also aligned with Jiankun's goal of pursuing various strategic alliances and joint ventures for mutually beneficial outcomes.
"This JV will serve as a springboard for additional productive partnerships between Jiankun, MRSB, and MRPSB.
"We are enthusiastic about the potential development and value addition we may provide to the neighbourhood through our partnerships. In the future, we will be able to collaborate on other real estate development projects that will benefit all parties involved," he added.
The project includes moving current inhabitants to a new apartment that the MRPSB will construct, and full compensation will be provided to all current tenants.
The transfer of current occupants, in Edwin's opinion, is crucial because it enables the responsible demolition of Flat PKNS Jalan Tun Razak without having an impact on the people who are already living in the flats and on the property.
He said that as the current people will continue to live in the new development, this will help protect the community's identity.
The rehabilitation project, according to Edwin, represents a new turning point for Jiankun as it is the biggest real estate development project the company has ever taken on.
Edwin Silvester Das
On March 23, Jiankun announced that its joint venture agreement with MRSB for the renovation of Flat PKNS Jalan Tun Razak had been terminated because it had been unable to pay the first advance of RM2 million on time.
The apartments were to be transformed into a mixed residential and retail development with a gross development value of RM1.2 billion under the prior agreement, which was signed on January 26.
The market capitalization of Jiankun was RM52.6 million as its share price finished 2.27 percent or half a sen higher at 22.5 sen on Thursday.
©️ June, 2022, edgeprop.my