Revival of abandoned RM1.4bil 79-storey Plaza Rakyat near Pudu bus terminal

Revival of abandoned RM1.4bil 79-storey Plaza Rakyat near Pudu bus terminal


The abandoned Plaza Rakyat construction site along Jalan Pudu in KL. Sarawak-based tycoon Tan Sri Ting Pek Khiing (pic inset) — BRIAN MOH/ The Star

PETALING JAYA: Interested parties can now submit their proposals for the rehabilitation of the long abandoned Plaza Rakyat project located along Jalan Pudu and beside the Pudu bus terminal in Kuala Lumpur.

The receiver and manager of Plaza Rakyat Sdn Bhd, Adamprimus, has placed an advertisement in several publications calling for parties with proven track records in integrated property development and strong financial background to “express their interest” by submitting proposals for the project, which was abandoned in the aftermath of the Asian financial crisis of 1997/1998.

The project, spread over 15.3 acres of prime land in the city centre, was first mooted in 1995 by Wembley Industries Holdings Bhd, a company linked to Sarawak-based tycoon Tan Sri Ting Pek Khiing (pic inset), in collaboration with Kuala Lumpur City Hall.

Plaza Rakyat, which was planned almost at the same time as the iconic Suria KLCC project, was then envisioned as an RM1.4bil multi-modal transport terminus and commercial and residential project in the heart of the capital.

The original plans comprised a 79-storey office tower, 46-storey condominium, 24-storey hotel and 7-storey shopping centre.

Zerin Properties chief executive officer Previndran Singhe told StarBiz that the project was supposed to transform the area as a transportation hub with hotel and mall elements. The only reminder of the hub is the Plaza Rakyat LRT station.

“Generally, when receivers and managers come into the picture, they would be looking to secure and realise the assets of the said company in order to manage the affairs of the company to discharge the debts owning,” Previndran said.

A quick Internet search by StarBiz revealed almost nothing of Adamprimus, with its website address directing to a non-functioning site. There were also no other information on the Internet about the company, a restructuring and reorganisation specialist, according to the advertisement.

This would not be the first attempt to revive the project as efforts were made in 2003 by a Ting-related company, Global Upline Sdn Bhd, which was appointed as the turnkey contractor, taking over from Daewoo Corp, the original contractor who had completed about 30% of the project.

However, Global Upline withdrew from the job as it could not accept certain undisclosed conditions. Ting remains chief adviser of Global Upline.

Since then, the project has gone through a merry-go-round of contractors, as after Global Upline withdrew, it was awarded to PJ Indah Sdn Bhd, a unit of PJ Indah Holdings Bhd, now known as PJI Holdings Bhd and a property-cum-construction outfit but the contract was mutually terminated.

It was then awarded to Jetwork Engineering Sdn Bhd in 2005 but ended back up with Global Upline in 2007 with plans to complete the project in five years but nothing has moved since then.

Global Upline did not come up with a plan to revive the project even after it was given an ultimatum by the Government in 2009, who also threatened to hand the project to another developer.

When the Government eventually terminated the contract for the development on the 6.322 million sq ft leased from City Hall for 88 years, a court injunction ensued with Global Upline seeking RM1bil in compensation.

Source : The Star

Date : 21 May 2013

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