The Employees Provident Fund (EPF) will be calling for tenders for the development of the first phase of the 943ha in Sungai Buloh, which has a projected gross development value (GDV) of RM50bil over the next 20 years, next month, acording to a statement from EPF’s Kwasa Land Sdn Bhd.
The pension fund’s wholly-owned subsidiary, Kwasa Land, which has been tasked to be the master developer of this land, will get the ball rolling again after a hiatus of more than a year since it called for a pre-qualification bid in September 2012.
Over 150 developers had submitted their credentials, which was subsequently narrowed down to 60 players.
“Upon obtaining the necessary approvals from the state authorities, the first parcel of 26ha will be developed into a modern state-of-the-art town centre and transport hub in a partnership with Tier 1 developers,” the master developer said in a statement.
A Tier 1 developer is defined as a company with a paid-up share capital or shareholders’ fund of at least RM1bil.
Kwasa Land managing director Mohd Lotfy Mohd Noh said: “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.”
The town centre will comprise 70% commercial and 30% residential components.
It said EPF would consider allocating another 12ha for a corporate park in a garden setting, with the first phase for its corporate office to attract corporate players to relocate to the development.
The concept includes green, connectivity and inclusiveness.
It also said the master plan for the proposed township of Kwasa Damansara had been presented to the state government for evaluation and approval.
Due to the huge land size, the township would be developed into eight precincts, each to have its own urban design guidelines, it added.
“The first three developments, which will take place within the first two years, come under the jurisdiction of the Majlis Bandaraya Shah Alam.”
In addition to the town centre, residential developments of about 4.5ha to 9ha each will be tendered out to Tier 2 and Tier 3 bumiputra developers.
“These parcel sizes are maintained to ensure that the supply and demand for the properties are kept in control to match market conditions,” it said.
The land was bought from the Rubber Research Institute in 2012 for RM2.28bil.
Alliance Research head Bernard Ching said take-up depended on the property players’ appetite, given that the property market outlook had turned more subdued.
That said, big boys with healthy balance sheets who were confident of pushing sales could be the potential candidates, he added.
Based on the RM11bil for the 546.3ha it would sell to developers, the indicative land price would work out to an average of RM186.4 per sq ft.
Analysts noted that the properties that would be rolled out would not be cheap, considering the land cost, which is at about market price although that would depend on how the land is distributed.
As the largest development in terms of GDV in recent times, various developers have expressed interest to participate in the development, which is situated in a strategic location.
Analysts StarBiz spoke to suggested that some of the possible property players that could take part in the development include SP Setia Bhd, UEM Land Bhd, Sunway Bhd, Mah Sing Group Bhd, Malaysian Resources Corp Bhd (MRCB) and IJM Land Bhd.
Potential candidates for the infrastructure works could be WCT Holdings Bhd, IJM Corp Bhd and MRCB.
MRCB group managing director Datuk Mohamad Salim Fateh Din said it was still preliminary to comment, as it would have to study the terms and conditions of the tender.
A Mah Sing spokesperson said: “With the existing success of our D’sara Sentral project, which is diagonally across the road from the MRT Station 2 next to Kwasa Damansara, we will certainly look for opportunities to extend our presence in this area.
“As we fall under Tier 1 under Kwasa Land’s definition, we are looking forward to participating in the tender for the development of Phase 1, once the tender is called in February.”
