PROPERTY-BASED Jiankun International Bhd has revived its re-development project in Kampong Bharu, Kuala Lumpur that has been terminated previously on grounds of gradual property market recovery following the re-opening of Malaysia’s economy.
Towards this end, the company has inked a joint venture (JV) agreement with Menara Rezeki Sdn Bhd yesterday (June 16) to utilise a company known as Menara Rezeki Properties Sdn Bhd as a JV company to undertake a re-development project.
A filing with Bursa Malaysia shows that Jiankun and Menara Rezeki have concurrently entered into a share sale agreement for the acquisition of 70% stake in Menara Rezeki Properties for RM700,000.00 with the balance owned by the latter.
The sole purpose and business of the JV company is to carry out all aspects of the re-development project.
Under the proposed re-development plan, a 52-storey apartment will be built for all existing owners of the Flat PKNS Jalan Tun Razak in Kampong Bharu. In contrast, the proposed Tower 1, Tower 2, and Tower 3 are mixed development with residential and retail units.
“We are confident that the re-development project will be a success as the re-opening of the economy will benefit the property sector,” commented Jiankun’s executive director and CEO Edwin Silvester Das. “It will also boost the group’s plan to expand its property project (undertakings) while rejuvenating the Kampong Bharu vicinity.”
Above all else, the proposed JV is also consistent with Jiankun’s objective of seeking various strategic alliances and JVs for synergistic benefits such as paving the way for future collaborations between the Jiankun group and Menara Rezeki.
This in a way is aligned with the group’s objective for more collaborative ventures with local government, government-linked entities as well as other property developers.
The current re-development project includes re-locating existing residents into a new apartment alongside a comprehensive compensation scheme to all existing residents.
According to Das, the re-location of existing residents is important to enable the demolition of Flat PKNS Jalan Tun Razak in Kampong Bharu to be done responsibly without affecting residents that are currently occupying the flats and lands.
This is also intended to preserve the identity of the community as the existing residents will continue to stay in the new development.
Given its strategic location, the 3.69-acre site that is bounded by Jalan Tun Razak can be a potential prime site to attract investments and even to boost the growth of small medium enterprises (SMEs) among the local community given its excellent connectivity, existing infrastructure, public transportation and proximity to the central business district.
Das further noted that the re-development project signifies a new milestone for the group as it is by far the largest property development project undertaken by the group.
“We are looking forward to the re-development of this project as it will not only help to rejuvenate the Kampong Bharu vicinity but more so the positive spill-over effect to the local community,” envisages Das.
“This is given the re-development will encourage investment, improve local infrastructure and provide added multiplier effect that benefits the local community.”
At the close of yesterday’s (June 16) trading, Jiankun was up 0.5 sen or 2.27% to 22.5 sen with 678,900 shares traded, thus valuing the company at RM53 mil. – June 17, 2022
