KUALA LUMPUR (Feb 23): Kelana Ventures Sdn Bhd (KVSB), a company owned by tycoon Tan Sri Syed Mokhtar Albukhary, has confirmed a report by The... [...]
by TMR / Photo credit http://mod.gov.my
Developer Kelana Ventures Sdn Bhd has clarified its position in a land swap for construction deal that was said to value a Ministry of Defence property known as Kem Kinrara at a discount.
The property developer, which was supposed to receive land in Kinrara in return to financing and building three facilities for the Ministry costing a total of nearly RM500 million in a deal with the ministry, said the land known as Kem Kinrara was valued based on current situation and did not include future costs that will be incurred to develop the land commercially.
News reports said the Kinrara land was valued at RM500 million by the developer at a discount compared to a value of RM728 million assessed by the Government’s own valuers.
In a statement late Friday, the company said the Kinrara land was valued at RM500 million with a mind that there will be costs to convert the use of land for Residential and Retail.
KVSB said it entered into an arrangement with the Ministry of Defence where it will construct three facilities for Mindef in return for the Kem Kinrara land.
The facilities are a new Army Camp at Kem Paloh, Kluang Johor at a cost of RM280.7 million, a new Pusat Latihan Pengurusan Logistik at Sendayan, Negeri Sembilan costing RM137.3 million and a new Air Force headquarters Markas at Mindef, Kuala Lumpur for RM81.9 million.
“All of these construction development projects are estimated to cost KVSB RM499.9 million in total,” it said.
“In consideration of KVSB agreeing to finance, construct and transfer the above facilities to Mindef, Mindef has agreed to swap the Royal Malaysian Air Force land in Kinrara (“Kem Kinrara”) with KVSB upon its completion.”
The company said it valued the Kem Kinrara land at RM500 million “based on its existing condition without taking into account the future Conversion Premium that need to be paid (for Commercial and Residential status) and other restrictions and conditions that may be imposed by the Selangor State Government for our future development.”
KVSB said it had not signed any agreement with Mindef for the land swap nor for the construction of the three facilities but has begun construction for Kem Paloh at the request of the Ministry.
KVSB was named as the developer involved in a report by the Financial Daily on Friday.
KVSB said said the report did not reflect the true nature of the arrangement between KVSB and the Ministry of Defence and was “erroneous and misleading.”
On Thursday, an aide to the Defence Minister told reporters that the land had been swapped for RM500 million although it had been valued at RM758 million by the Valuation and Property Services Department (JPPH) in 2015.
Last week, Mindef said the Government could have lost as much as RM500 million from 16 of the Ministry’s land swap deals. – TMR
The post Developer says Mindef land RM500m valuation did not include conversion and other cost appeared first on The Malaysian Reserve. [...]
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