SP Setia, Tradewinds to develop housing project for City Hall

Last update: 07/05/2018

KUALA LUMPUR, May 7 (Bernama)== Retro Highland Sdn Bhd, a special purpose vehicle jointly owned by SP Setia Bhd and Tradewinds Corporation Bhd, will undertake a housing privatisation project for the Kuala Lumpur City Hall (DBKL) in exchange for a 21.14-hectare land in Cheras, Kuala Lumpur.

In a filing with Bursa Malaysia today, SP Setia said the Quality Sustainable People Housing (QSPH) project involved the construction of 3,971 residential units, 112 units of shops/stalls, a market and other public facilities.

In return, DBKL would transfer the leasehold land in Cheras (exchange land), valued at RM1.19 billion, to Retro Land, free from encumbrances.

Both the QSPH development land and exchange land are located southeast of the Chan Sow Lin area in Kuala Lumpur and immediately east of the Cheras LRT Station.

Retro Highland  today inked the privatisation agreement with DBKL for the planning, design, construction, completion and commissioning of the QSPH project.

SP Setia said the QSPH development would comprise two phases of four years each.

The first phase would consist of 1,192 residential units while 2,779 residential units, 112 shops/stalls, a 244-lots market and public facilities would be developed in phase two.

Meanwhile, Retro Highland? planned to undertake a mixed development project on the exchange land with an estimated gross development value of RM11.03 billion over 11 years.

The QSPH development and the proposed development of the exchange land are expected to be funded via bank borrowings and/or internally generated funds.

"This agreement is in the best interest of the company. Subject to the fulfilment of the condition precedents and the QSPH development, the privatisation agreement is expected to be completed by 2028," SP Setia said.