UDA has announced that the development of Pudu Prison will be undertaken by a consortium of UDA, Eco World and KWSP. The development would be known as Bukit Bintang City Centre. UDA will hold 40%, Eco World 40% and KWSP 20%. The choice of Eco World was due to its good track record. The development consisting of over 5 million square feet would include commercial, office and residential development. The development will start early next year. This is a good announcement indeed as with Eco World, the project would definitely be of a certain standard and stature. No further details were available on the potential pricing for the residential project though.
I think many potential investors would be waiting for more details of this huge development in such a prime piece of land in the city centre. A check on some of the latest listings for Bukit Bintang in Iproperty revealed that the price per sf is at a minimum of RM1,100 today. Please refer to the image for further details. I do not think the launching price for the residential component would be lesser than this current benchmark. Furthermore, Eco World has many loyal followers and thus there should be queues few days before the project opens? Hmm.. market is supposed to be slow for 2014 but when a good deal comes along, we can see the power of demand.
GDV is RM7 billion and the retail mall would have 1 million sq ft rental space, similar to Suria KLCC. This redevelopment of the Pudu Prison is also part of the Economic Transformation programme to turn Klang Valley into Greater Kuala Lumpur economic district. The role of Eco World is very clear and I think for EPF, it would be supporting the project financially. This is especially due to the huge development cost involved.
Written on 24 June 2014
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