By Sharina Ahmad
THE Selangor State Development Corporation (PKNS) will be launching properties with a gross development value (GDV) of RM26 bil over 5-10 years and has also changed its business model, says its CEO Datuk Mohd Azizi Mohd Zain.
In an exclusive interview with FocusM, he said PKNS will be launching a total of nine projects, to be developed on a joint-venture concept with local developers across Selangor.
“We have changed our business model from the build-and-sell to sell-and-build concept for the first time since I took the helm last year. The old business model has been practised for the last 56 years.
“For this year, we are not building houses on our own but we will be looking to privatisation and collaborate with other private developers. We are the one that would give them the land and we would then jointly develop it.
“We expect them to give (part of) the returns to PKNS. This is the kind of business model we will use going forward,” he points out.
Mohd Azizi explains that because PKNS does not receive grants from the government to subsidise these projects, the state body has to create profits which can only come from its medium- to high-end residential and commercial developments that command a respectable profit margin.
The collaborations, Mohd Azizi says, will not only help to accelerate real estate development activities in Selangor but also provide a wide variety of property products to buyers.
“To this end, PKNS has identified nine properties that are proposed to be developed through the privatisation method. We need to identify our strategic development partners by asking them to submit their requests for proposal (RFP),” he notes.
Among the projects PKNS will be undertaking this year is North Lake in Cyber Valley, Selangor (RFP for site privatisation) which is slated to bring in anchor tenants like AEON.
Others include Selangor Business Capital (development partner) which will develop a convention centre, hotel and office tower in Shah Alam and Broga Land Development in Semenyih which will identify privatisation partners for 897 acres of land. There are more projects in the pipeline.
RFP is a business document that announces and provides details about a project, as well as solicits bids from contractors who will help complete the project. Most organisations prefer using RFPs and, in many cases, governments only use requests for proposal.
He said the state government would consider giving incentives to developers who wanted to implement the concept, but cautioned that pricing was an important issue that needed to be thrashed out with the Housing and Local Government Ministry. – Jan 29, 2020
