- Projected GDV of RM50b to be generated over the next 20 years
- State to reap economic benefits
PETALING JAYA — The Employees Provident Fund’s wholly-owned subsidiary Kwasa Land Sdn Bhd, tasked with the development of 2,330 acres in Sungai Buloh as master developer, is projected to generate RM50 billion in Gross Development Value (GDV) over the next 20 years.
As a first step, the master plan for the proposed township of Kwasa Damansara has been presented to the State government for their evaluation and approval. With this massive projected GDV, the state of Selangor is expected to prosper as more than 150,000 people move in to live, earn and thrive in this new iconic township.
The vast tract of land has received overwhelming response from developers making it a challenge for the Kwasa Land Pre-Qualification committee to limit the qualifying number to only 60 of the best. Over 150 developers had submitted their credentials and applied for the opportunity to work alongside Kwasa Land during the Pre-Qualification exercise. Tenders for the development of Phase I will be called in February 2014.
“We intend to work with the best and most experienced developers who are required to comply with our urban design guidelines as well as our high standards for creativity and promoting a safe city concept,” said Mohd Lotfy Mohd Noh, managing director of Kwasa Land Sdn Bhd.
As master developer, Kwasa Land will initiate development through experienced partners and collaborators to deliver a township with a difference. It has been positioned as a transport oriented development with three tiers of developers set up to exercise the widest range of development opportunities.
Tier 1 developers are classified as large scale companies with a paid up share capital or shareholders’ fund of at least RM1 billion; Tier 2 developers are medium scale companies with a paid up capital or shareholders’ fund of at least RM300 million, and Tier 3 developers are Bumiputera companies with a paid up capital or shareholders fund of RM1 million and above.
Upon obtaining the necessary approvals from the State authorities, the first parcel of 64 acres will be developed into a modern state-of-the-art town centre and transport hub in a partnership with Tier 1 developers. The town centre shall comprise 70 per cent commercial and 30 per cent residential components, with the added advantage of having two MRT stations built within its confines for the benefit of residents and commuters within Klang Valley. The successful partner in developing this town centre will be based on the merits of their design proposal and financial consideration.
In addition to the town centre, residential developments of approximately 10 – 20 acres each will also on a similar basis, be tendered out to Tier 2 and Tier 3 Bumiputera developers. These parcel sizes are maintained to ensure that the supply and demand for the properties are kept in control to match market conditions.
Although the 2,330 acres of this township development falls under the jurisdiction of two local councils, the State government through its State Planning Committee has agreed that one integrated master plan for the entire development be considered for approval.
The first three developments which will take place within the first two years come under the jurisdiction of the Majlis Bandaraya Shah Alam (MBSA).
“An additional allocation of 30 acres will be considered by the EPF to build a corporate park in a garden setting with the first phase for its corporate office. The goal is to spark a catalytic project to attract other corporate players and government agencies to locate or relocate their offices here in our development.”
Kwasa Land’s proposed land distribution “formula” shows the following percentage breakdown: 42 per cent for residential, 11 per cent for commercial, 7 per cent for mixed use, 11 per cent for green and open space, 23 per cent for infrastructure and 6 per cent for community facilities
The entire township project would be developed into eight precincts, each to have its own urban design guidelines. Based on this structural division of land, Kwasa Land is projecting land sales revenue of approximately RM11 billion for 1,350 acres to public limited companies, government-linked companies, private developers as well as Bumiputera developers. In addition, Kwasa Land is likely to invest in equity participation in most of the precinct areas to generate greater returns and to ensure conformance of the urban design guidelines.
Acquired at RM2.28 billion in 2012 from Lembaga Getah Malaysia, Kwasa Land aims to build a township that has a unique concept. Top of the urban design guidelines list is the preference for a three-pronged approach: Green, Connectivity and Inclusiveness or GCI for short. This is a clear indication of how urban design and building plans will achieve a tangible and sustainable trademark for the new township.
A compelling factor that drives the uniqueness of the township lies in the fact that it has multiple MRT stations, four highways that connect the development including the future DASH Highway that will traverse the township and future connections to the KTM Komuter service. In addition, the Subang SkyPark air terminal is located nearby at the South-West fringe. All these make the new township’s connectivity unparalleled.
To date, the MRT has started their construction, a plus point for the Kwasa Land planners as seldom do transport companies establish such a prior commitment, that is, before a township gets built and developed.
“In our case, this development will evolve naturally around the two MRT stations that have been planned,” added Mohd Lotfy.
Kwasa Land has earmarked and will undertake provisions for all ‘backbone’ infrastructure, common facilities and centralized amenities, and eight thematic landscaped parks to be enjoyed, green buildings, community facilities, a proposed common utility tunnel (CUT) that encourages a no-digging policy, central command centre and efficient sewage and disposal systems for both residential areas and commercial hub centres.
“People want a great list of things in their neighbourhood – green space, efficiently managed facilities and amenities, close radius to basic vendors and suppliers, accessibility, minimal pollution, all round safety, 24/7 security, centralised buildings for community use and more.
“We aim to consider all these needs and have in fact, incorporated them in the master plan including a 5.5 km linear park, in our effort to provide an improved quality of life and elements of liveability in our neighbourhoods. It is not a wish list but a feasible agenda as we have worked it out on our drawing board. It is all about achieving the right balance – as will be prompted in our planning and designs.
“The thrust is to provide a holistic and integrated development, which will require us to closely build and manage the development from start to finish or from drawing board to drawing room in the home. There is a high level of developer compliance, which will be spelled clearly in the developers’ urban design guidelines,” added Lotfy.
Kwasa Land aims to provide homes and residences totaling 28,000, comprising all types. This is translated into the township supporting about a 150,000 people who live and work in Kwasa Damansara. Its land distribution also shows that close to 50 million sq feet of commercial space will be created – an entrepreneur’s delight.