Selangor Properties, MRT Corp to finalise land issues
Apr 26, 2013
Selangor Properties Bhd (SPB) is in the middle of finalising negotiations with Mass Rapid Transit Corp Sdn Bhd (MRT Corp) to integrate its property projects with the current Sungai Buloh-Kajang MRT project.
SPB CEO Chong Koon San said the company expects positive outcome from the negotiations that have been ongoing since last year.
“I do not want to comment further as the matter is still under final negotiations. Definitely we are not going to sell the land. We are looking to integrate the projects as both parties can benefit out of it,” Chong said after SPB’s AGM held at its education arm Help University, managed by Help International Corp Bhd, in Pusat Bandar Damansara on 24 April.
In March 2012, SPB’s subsidiary Bungsar Hill Holdings Sdn Bhd (BHH) received notices of acquisition for its land from MRT Corp.
Since then both parties have been negotiating to seek a solution about MRT intention to buy the land. It may involve the outright sale of the land or a deal that may involve some form of joint venture development between the parties.
The Line 1 MRT project connects Sungai Buloh to Kajang via a track that runs through the city centre, and is made up of two phases.
The first phase is from Sungai Buloh to Semantan, while the second is from Kajang to Taman Maluri. The first phase is expected to be operational by December 2016, and the second by June 2017.
The MRT project will have two train stations located next to the group’s properties in Damansara Heights.
Moving forward, SPB, which was incorporated in 1963, is looking to develop its landbank for future residential and mix development projects.
SPB financial controller Lee Boon Kian, who was also present at the AGM, said a total of 265 acres comprising 150 acres in Hulu Langat, 34 acres in Damansara area, 60 acres for Selayang Mulia development project and the remaining for Bukit Permata housing projects will be developed in stages this year.
“We are drafting replanning for our property development projects to optimise our return,” Lee said, adding that a comprehensive blueprint for the group’s future developments will help to strengthen the company’s future earnings.
SPB’s current investment properties includes Menara Milenium, Wisma Damansara, Kompleks Pejabat Damansara, 16-Shop Batai, SPB Towers and Taman Tunku apartments all of which are located within Damansara Heights.
“Our main profit contributor is property investment followed by property development and education. About 60% of our business is transacted locally whereby the remaining 40% are from overseas,” he added.
Help International, listed on the second board, is SPB’s investment in education in which it has a 51% stake.
SPB owns 50% stake in Claremont Shopping Centre project in Australia, managed by Hawaiian Pte Ltd which owns and manages commercial, retail and hospitality portfolio.
For financial year 2012, SPB posted RM75.7 million net profit, less RM41.5 million from the previous year due to deferred taxes and the earnings per share is 20.1 sen.