News: Plaza Rakyat Buyers Seek Better Compensation Package

Nov 26, 2019

Unit buyers at the abandoned Plaza Rakyat project would like to meet with Federal Territories Minister Khalid Abdul Samad to explore an amicable solution to issues, which include compensation for the project’s late delivery. 

The meeting was proposed following reports of plans to revive two abandoned projects in Kuala Lumpur, namely the Grand Duta Hyatt hotel and Plaza Rakyat.

Ng Peng Wah, group spokesman for Plaza Rakyat purchasers, shared that affected buyers want a fair compensation and to know more about the renewed plans for Plaza Rakyat, reported The Star.

“We still want our units back and also a better compensation package because we purchased the property 20 years ago…The value is not the same,” he said.

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“We would also like to have a new copy of the sales and purchase agreement from Kuala Lumpur mayor Datuk Nor Hisham Ahmad Dahlan and the developer due to some new criteria for the project.”

Abandoned in 1997, Plaza Rakyat was only 30 percent completed when Plaza Rakyat Sdn Bhd (PRSB) faced financial troubles during the 1997/1998 Asian financial crisis.

With PRSB’s contract terminated by the government in 2010, Profit Consortium Sdn Bhd applied for planning permission for the RM1.4 billion project, which includes a 96-storey tower with 50 storeys of serviced apartments, a 26-storey hotel and 10 storeys of office space.

Danny Gan, a Plaza Rakyat buyer in his early 70s, said buyers should be given some form of compensation.

“We have been waiting for so long and we want compensation to cover lost opportunity costs…The project has dragged on for so long and it has affected our investment,“ he said.

Plaza Rakyat’s construction is slated to restart this year, following the release by Kuala Lumpur City Hall (DBKL) of Development Order (DO).

“For Plaza Rakyat, we were able to help get a new contractor to resume the project, which now has more than 200 buyers for its apartment units,” said Khalid.

“Meanwhile, the Hyatt Hotel had several amendments to its DO in 1998,2003 and 2013, but construction is also expected to start this year,” he added.

To ensure the revival of the two projects, the government offered multiple incentives to developers, such as a 50 percent discount on development charges, revealed Khalid.

“For Plaza Rakyat, the developer will only be clearing the site in the meantime as they have to settle a fee of RM5 million for the DO to be issued,” he said.

“Both projects are estimated to take between 36 and 50 months until completion.”

“A grand launch will be held to announce the start of construction work on those projects because we see it as a major success to be able to save these two stalled projects,” he added.

 

Image source from The Star

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