97% OF LANDOWNERS SAY THEY ARE READY TO SELL LOTS AND MAKE WAY FOR MODERNISATION, ACCORDING TO FT MINISTRY
Kampung Baru, located in the heart of Kuala Lumpur’s commercial district, has held out against modernisation for decades, but landowners there are now finally warming up to redevelopment plans.
Federal Territories Minister Khalid Abdul Samad recently said that he was optimistic the Kampung Baru Development Plan would be finalised by June this year due to encouraging feedback from landowners.
The minister said that this was a result of a series small meeting held between Kampong Bharu Development Corporation (KBDC) with landlords and members of the community to discuss many of the ongoing issues regarding the area.
Khalid said these meetings have been held since December 2019 and KBDC has already met with 50% of the 5,374 landowners in Kampung Baru. Of these, he added, 97% have indicated that they are ready to sell their lots to make way for the Kampung Baru Development Plan, which could be finalised in the next six months.
The minister said that the government is prepared to take alternative necessary steps if the situation reached an impasse, but remains confident that the “new offer” on the table will help get 100% support and approval from landowners.
The government has upgraded the previous offer of RM850psf for purchasing land in Kampung Baru to RM1,000psf. It also announced that RM150psf of the purchase price would be paid in the form of stakes in a special purpose vehicle (SPV) that will facilitate redevelopment activities.
In October last year, Khalid said that the latest offer was “the government’s final and best offer”, adding that landowners who opt to buy real estate in the new development project would also get a 15% discount.
Additionally, landowners would get shares in the SPV of the development project, which means they will continue to have ownership rights over the land and have a say in its future development.
However, details of the structure of the shares have not been finalised yet. It is expected to be fine-tuned before any formal agreement is signed.