By Khairie Hisyam
Naza Group has inked a development rights agreement for a 12.7-acre leasehold plot in Employees Provident Fund’s (EPF) Kwasa Damansara township development in a deal worth RM400 million in gross development value (GDV).
In a statement today, EPF unit Kwasa Land, the master developer of the 2,330-acre township project, said the development by Naza will offer 278 residential units and some 1.8 acres of the plot area have been set aside for a vehicular-free zone called the Central Park.
“Upon completion, Kwasa Land’s financial return based on nett present value (NPV) will be RM88 million which is equivalents to RM160 per square foot (psf) inclusive of the revenue guarantee,” said Kwasa Land managing director Mohd Lofty Mohd Noh.
The development is expected to launch by the third quarter of 2016, said Naza group managing director-cum-deputy executive chairman SM Faliq SM Nasimuddin. The 278 units will range between 1,200 square feet and 2,800 square feet in built-up area and is planned to be a gated-and-guarded community, according to Kwasa Land’s statement.
According to Kwasa Land, the R2-1 plot is situated next to the Kwasa Damansara central business district, MX-1, as well as two mass rapid transit (MRT) stations. In addition, the 1.8-acre Central Park will have green connectivity to a bigger, 42-acre Urban Park within the Kwasa Damansara township, it said.
The R2-1 announcement, the fifth award for the township, comes less than a month after Kwasa Land awarded two residential projects in the township to two bumiputera developers in a bidding process that saw the duo edge out 19 other pre-qualified bumiputera companies.
In a statement released Nov 12, it said Ahmad Zaki Resources Bhd was awarded the R3-4 project worth some RM257 million in GDV, while Getrahome Sdn Bhd bagged the R3-3 project worth RM215 million in GDV. The estimated present values of the total returns to Kwasa Land from the projects are RM44.9 million and RM43.5 million respectively.
In end-September, Kwasa Land announced that it has awarded the main town centre development job worth RM127 million, coded MX-1, to infrastructure player WCT Holdings.
This was followed by the award of the R2-1 residential development to Naza TTDI Sdn Bhd, a proposed residential development on a 12.7-acre land area. For this project, Kwasa Land expects a nett present value of return of RM88 million or roughly RM160 psf.
The MX-1 job was awarded under the Tier 1 category, which comprises large-scale companies with shareholders’ funds or paid-up capital of RM1 billion and above. Meanwhile, the R2-1 project was awarded under the Tier 2 category, meaning for companies with shareholders’ funds or paid-up capital of RM200 million and above.
Tier 3, under which AZRB and Getrahome won the bidding process for R3-4 and R3-3 respectively, is for bumiputera companies with shareholders’ funds or paid-up capital of RM1 million and above.
Apart from R3-4 and R3-3 Kwasa Land had also awarded another project under Tier 3, namely the R3-2 development, to Impiana Land & Development Sdn Bhd. The project has a GDV of RM400 million and will see 436 residential units built over 8.79 acres.
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