Plaza Rakyat buyers want meeting with FT Minister
Monday, 25 Nov 2019
By JAROD LIM
image: https://apicms.thestar.com.my/uploads/images/2019/11/25/402673.jpg
The abandoned Plaza Rakyat site in Jalan Pudu was once filled up with rainwater before it was drained two years ago for health and safety reasons.
PLAZA Rakyat unit buyers want to meet with Federal Territories Minister Khalid Abdul Samad to find an amicable solution to “pending issues, ” including compensation for the late delivery of the project.
This proposed meeting was mooted in light of reports on the revival of two white elephants in Kuala Lumpur, namely Plaza Rakyat and the Grand Duta Hyatt hotel project, to reduce the eyesore of abandoned buildings despite a slowdown in overall development in the capital city.
Plaza Rakyat purchasers group spokesman Ng Peng Wah, 60, said the affected buyers wanted to get a fair compensation as well as to find out more about possible renewed plans for Plaza Rakyat.
“We still want our units back and also a better compensation package because we purchased the property 20 years ago.
“The value is not the same.
“We would also like to have a new copy of the sales and purchase agreement from Kuala Lumpur mayor Datuk Nor Hisham Ahmad Dahlan and the developer due to some new criteria for the project, ” he said.
He added that he was looking at the government plans on the revival of Plaza Rakyat optimistically.
Plaza Rakyat was abandoned in 1997 after just 30% of it was built as Plaza Rakyat Sdn Bhd (PRSB) ran into financial difficulties during the 1997/1998 Asian financial crisis.
The Government decided to terminate PRSB’s contract in 2010,12 years after the company abandoned the mixed-development project.
A new company, Profit Consor-tium Sdn Bhd had then applied for planning permission for the RM1.4bil development project.
The development plan is for a 96-storey tower comprising 10 storeys of office space, 50 storeys for service apartments and a 26-storey hotel.
Another Plaza Rakyat buyer Danny Gan, in his early 70s, also said there should be some form of compensation.
“We have been waiting for so long and we want compensation to cover lost opportunity costs.
“The project has dragged on for so long and it has affected our investment, ” he said.
Construction of both Plaza Rakyat and Grand Duta Hyatt hotel, which was also stalled since the 1990s, is expected to restart this year after Kuala Lumpur City Hall (DBKL) issues Development Orders (DO) to the respective projects.
Khalid had been previously quoted as saying that these projects were eyesores in the city and reviving them would benefit both DBKL and the public.
“For Plaza Rakyat, we were able to help get a new contractor to resume the project, which now has more than 200 buyers for its apartment units.
“Meanwhile, the Hyatt Hotel had several amendments to its DO in 1998,2003 and 2013, but construction is also expected to start this year, ” he said at a press conference held at Menara Seri Wilayah in Putrajaya.
He said the government had given multiple incentives to any developer willing to pick up the abandoned projects, such as giving 50% discount on development charges, just to ensure those two projects would be revived.
Khalid also gave assurance that construction would not begin without the issuance of DO so that safety was not compromised.
“For Plaza Rakyat, the developer will only be clearing the site in the meantime as they have to settle a fee of RM5mil for the DO to be issued.
“Both projects are estimated to take between 36 and 50 months until completion.
“A grand launch will be held to announce the start of construction work on those projects, because we see it as a major success to be able to save these two stalled projects, ” he added.
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The abandoned Plaza Rakyat site in Jalan Pudu was once filled up with rainwater before it was drained two years ago for health and safety reasons.
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