HCK Capital Group Berhad is back again as the white knight following a series of negotiations and agreements between the landowners, creditors, contractors, liquidators and financiers of Remix 1 located at Subang Jaya.
More than 2500 earlier buyers, will hopefully soon see the light at the end of the tunnel after more than 13 years of waiting for their property which was abandoned by the original developer, True Renaissance Development Sdn Bhd (TRDSB).
This waiting was also made worse by the payment of bank interests for a property that never materialised since their end financing had been drawn down by TRDSB by as much as 90%.
The proposed white knight has indicated that it will complete the project without any additional costs to the buyers, even though there is only a balance of 10% to 15% payment to be drawn down from the buyers’ end financiers, and the cost of construction has risen drastically over the years.
The units which were purchased at an average of RM450 to RM550 psf 13 years ago has now greatly appreciated, based on current valuations.
The re-commencement of the project now should be a great relief for the purchasers, who can then recoup their investments and make good capital gains.
It is understood that the purchasers have collectively paid to the previous developer an estimated RM500 mil (excluding downpayments and monthly interests). Many of them are facing difficulties paying their monthly instalments despite not having delivery of the properties they have purchased.
It is estimated that the white knight has to now fork out more than RM450 mil to subsidise the completion of those over 3000 units which have been sold.
White knight all ready to move in
HCK is seen to have proven its capability by completing the abandoned Remix 2 within the stipulated timeframe with Kerjaya Prospek Group Berhad as the main contractor.
It is understood that HCK will this time again work with one of the top public listed contractors to revive the Remix 1 project.
An agreement for the construction award is expected to be signed very shortly. It is understood that the project will be completed in four phases, with those sold units in the early phases.
It is understood that Remix 1 will be renamed as “Subang Sentral” as part of HCK’s portfolio of current and upcoming development projects, which has a combined gross development value of about RM15 billion and are mostly located in the Klang Valley.
Revival can upgrade Subang area
HCK says its efforts, despite the challenges and risks involved in reviving a long-abandoned project with very low possible margins, are driven by a desire to help clear the area of an eyesore, health hazard, and alleviate the hardships of those whose hard-earned money has been deprived of.
It is understood several top-tier and big-name developers have earlier been approached to revive the project, but all have declined due to the high risks involved in undertaking a massive project that has been deserted for more than a decade.
The project is right beside Kesas Highway and the few incompleted towers could be seen from a distance.
edumetro, which HCK completed and handed over in 2024, is thriving with its high foothold of residents and an educational institution (SEGi College) occupying one of its towers.
All 1500 units have been handed over to the purchasers, many of whom had earlier also paid up to 90% of their purchase price to TRDSB. The original condo units are now being transacted at up to RM920 psf, almost double their original purchase price. —Jan 16, 2025
Main image: HCK Capital
