KUALA LUMPUR (March 8): Retro Highland Sdn Bhd, the 50:50 joint venture (JV) between S P Setia Bhd and Tradewinds Corp Bhd, has signed a master agreement with the Kuala Lumpur City Hall (DBKL) for the redevelopment of the council’s flats in Cheras.
In a filing with Bursa Malaysia yesterday, S P Setia said the agreement was signed to outline the overall planning, design, construction, completion and commissioning of the project, dubbed the Quality Sustainable People Housing (QSPH) development.
The deal involves 138.25 acres (55.95ha) of DBKL land in Cheras.
Under the agreement, Retro Highland will carry out the QSPH development in four phases comprising the construction and completion of 5,650 units of three-bedroom units measuring about 850 sq ft each, with amenities, on about 60.45 acres of the DBKL land.
In return, Retro Highland will be awarded about 77.8 acres of leasehold land in Cheras — 25.55 acres of which it will acquire — for a mixed development project, which estimated gross development value amounts to RM16.3 billion over a 15-year period.
Retro Highland will undertake the QSPH development at its cost, and also bear the expense of building 112 shops/stalls and a market. It will pay DBKL some RM36 million cash, and in the mixed development pay the council a minimum profit guarantee of RM229.42 million.
S P Setia said the master agreement will allow it to continue to strengthen its presence in the Klang Valley, while providing a rare opportunity for the group to further showcase its expertise in residential and commercial developments within the heart of Kuala Lumpur.
S P Setia gained five sen or 2.28% to RM2.24 yesterday, giving it a market capitalisation of RM8.87 billion.
This article first appeared in The Edge Financial Daily, on March 8, 2019.