PROPERTY-BASED Jiankun International Bhd will be undertaking the proposed re-development of existing Flat PKNS Jalan Tun Razak in Kampong Bharu which boasts a gross development value (GDV) of RM1.2 bil.
Yesterday (Jan 26), the company inked a joint venture (JV) agreement with Menara Rezeki Sdn Bhd and Menara Rezeki Properties Sdn Bhd for the purpose.
“The proposed re-development project includes re-locating existing residents into a new apartment that we will build with a comprehensive compensation offered,” commented Jiankun’s new executive director Azmi Osman.
“This will enable the demolition of Flat PKNS Jalan Tun Razak in Kampong Bharu to be done responsibly without affecting residents who are currently occupying the flats and surrounding area.”
Under the proposed re-development plan, there will be 52-storey apartment towers built for the existing owners of the Flat PKNS Jalan Tun Razak. In contrast, Tower 1, Tower 2 and Tower 3 are mixed development with residential and retail units.
The 3.69-acre site is also located strategically, bounded on the side by Jalan Tun Razak. As a result, it is a prime site for re-development given its excellent connectivity, infrastructure, public transport and proximity to Kuala Lumpur’s central business district.
According to Menara Rezeki’s managing director Datuk Saiful Nizam Mohd Yusoff, the re-development project is the largest property development project undertaken by the Jiankun group.
“I’m excited to see how this will bring Jiankun to the next level,” noted Saiful Nizam who is also an independent non-executive director of Jiankun. “The project’s multiplier effect will also bring added value towards the re-development of Kampong Bharu thus benefitting the local community.”
Aside from rejuvenating the Kampong Bharu area, Jiankun’s executive director/CEO Edwin Silvester Das expects the project to spur the company’s growth. “This is given the re-developme
nt will encourage investment, improve local infrastructure and provide added multiplier effect that benefits the local community,” he added.
Thus far, Jiankun has already taken the initiative to obtain a letter of support from a local bank for a credit facility to finance the re-development project based on the project’s preliminary scope.
This puts Jiankun in a position to start the year strongly. Aside from that, the recovery of the property sector amid the gradual re-opening of the economy and a shift towards normalisation in the post-COVID world will also benefit the group in the long run.
At the close of yesterday’s (Jan 26) trading, Jiankun was up 0.5 sen or 2.5% to 20.5 sen with 894,000 shares traded, thus valuing the company at RM44 mil. – Jan 27, 2022
