The Star – Warisan Merdeka project will not be at Bandar Malaysia

Published: Saturday March 15, 2014 MYT 12:00:00 AM 
Updated: Saturday March 15, 2014 MYT 12:14:39 PM

BY BK SIDHU

The 118-storey Warisan Merdeka tower project has moved from the drawing board and onto the construction phase after the first contract was awarded to Pintaras Jaya Bhd this week.

This effectively puts an end to speculation that the massive tower was going to be shifted to the old Sungei Besi airport where 1Malaysia Development Bhd (1MDB) is undertaking a mammoth development to create Bandar Malaysia.

The hope was that the tower would be a catalyst for 1MDB’s development there.

Since November last year, market talk was that the tower could be moved to the new location because there is no iconic building at Bandar Malaysia.

But the award to Pintaras Jaya Bhd, which took the market by surprise, underlines Permodalan Nasional Bhd’s (PNB) persistence to keep the location of the tower at its original location.

“There have been several proposals but a lot depended on the feasibility studies.

“What really works for PNB and where it really wants to be and naturally, it does not want to be pushed around,’’ says a source.

1MDB needs an iconic building to attract investors to Bandar Malaysia and prior to that, a lot of infrastructure would also be laid before investors can be enticed.

Pintaras Jaya in an announcement to Bursa Malaysia on Wednesday said its subsidiary Pintaras Geotechnics Sdn Bhd received a commencement date notice dated March 12 this year from PNB Merdeka Ventures Sdn Bhd to undertake foundation works for the proposed building at Warisan Merdeka in Kuala Lumpur.

PNB Merdeka Ventures is a unit of PNB, the developer of Warisan Merdeka.

The contract to Pintaras is worth RM74mil for foundation works.

Those in the know claim that there was a tender bid and Pintaras, given its expertise in foundation works, was selected for the job.

The pre-qualification for the foundation works commenced in March 2012.

But this is just the first of many contracts that will be dished out.

The next step is for further clearance works and within this year the contract for the superstructure will also be tendered out.

Several companies are keen to be part of the development but Merdeka Ventures is not willing to say much on that.

The skyscraper project or Warisan Merdeka, which will house the headquarters of PNB and its group of companies, will be located within the enclave of Merdeka Stadium and Stadium Negara.

It will be developed on 19 acres, and the two stadiums will be retained as national heritage buildings.

The skyscraper project will also consist of a mall and public park and house a luxury hotel and about 20 floors will be rented to tenants.

With 118 floors, the height of the building is expected to exceed 500m, meaning that it will surpass the current tallest building in Malaysia which is the 452m Petronas Twin Towers. It will have gross floor space of 3 million sq ft and 2.2 million sq ft of net floor space and the building will cost RM2.5bil to RM3bil.

The entire development in addition to the tower is projected to cost RM5bil.

As for 1MDB, it is a government-owned master developer for the redevelopment of the 495-acre (196 hectares) Bandar Malaysia in Sungei Besi. The development of Bandar Malaysia will kick start with affordable housing units within the next one to two years.

For Pintaras Jaya, analysts say the new contract will boost the company’s outstanding orderbook to RM224mil and likely boost earnings before interest and tax by RM22.2mil.

Pintaras Jaya said work at the site will commence on March 17 and is expected to be completed within a year’s time.

The Edge – Pintaras wins RM74m PNB Warisan Merdeka tower contract

More Posters from Dinding Merdeka (Merdeka Wall)

From various Fb pages

Posters from Dinding Merdeka (Merdeka Wall)

From various Fb pages

CNBC – Is Malaysia’s property market headed for a Dubai-style crash?

Published: Monday, 16 Sep 2013 | 7:10 PM ET
By: Leslie Shaffer

Malaysia’s office construction boom could lead to a Dubai-style property bust, CIMB warns, but other analysts expect a more muted correction.

Dubai’s early story is similar to Malaysia’s current ambitions, CIMB said, noting both had plans to build iconic “tallest” office towers and other commercial projects to lift industry standards and alleviate Grade-A office space shortages.

But CIMB noted, Dubai had a “one-up” given demand from Fortune 500 companies already located there and steady occupancy rates around 97 to 99 percent, compared with Malaysian capital Kuala Lumpur’s occupancy in the low to mid 80 percent range.

After years of frenetic development, which included constructing the world’s tallest building, Dubai suffered a massive real-estate crash in the wake of the 2008 financial crisis, with property losing more than 50 percent of its value by 2011 as excessive speculation came home to roost. CIMB noted half-empty buildings continue to plague Dubai’s skyline.

On the slate for the Kuala Lumpur area are the 118-story Warisan Merdeka Tower, targeted as the tallest building in Southeast Asia and part of a huge complex that will include two condominium blocks, a hotel tower and an underground subway station, as well as the 28-building Tun Razak Exchange project targeted as an international financial hub, CIMB noted.

The report estimates around 17 million square feet of gross office floor area will come on-stream between 2015 and 2017, adding that even if demand doubles, it won’t absorb the influx.

It’s not just about empty offices, CIMB said.

“Without the solid backing of fundamental demand, the overbuilding of commercial real estate could result in painful long-term issues, such as a magnified oversupply of office space, depressed rentals and yields, wastage of strategic land resources and knock-on effects on the financial sector as borrowers default on their loans and the industry’s non-performing-loan ratio rises,” it said, adding that if the government offers funding for the projects, any losses will pressure public debt.

But other analysts note that not all of Malaysia’s office vacancies are created equal.

“A lot of the vacancies are found in buildings that are not built to a specification that a multinational tenant would want,” said Alan Cheong, senior director at Savills Research in Singapore.

He noted tenants tend to leave buildings that are 10-15 years old as the maintenance isn’t up to the standards seen in neighboring Singapore.

Overall, “grade-A vacancy rates are quite low,” especially in centrally located buildings, he noted.

Cheong doesn’t expect Malaysia to see an office-market crash as demand is likely to remain constant. “You’d have to scare the daylights out of the supply side,” he said. “Even if it’s down 10 percent, it’s not a crash. It’s just a reaction to greater supply.”

(Watch now: Is Malaysia the next shoe to drop in emerging markets?)

Even the planned Warisan Merdeka Tower, which he calls a “hypothetical building,” could act as “pump priming,” as it may generate temporary office demand for the construction companies and material suppliers in Kuala Lumpur, Cheong said.

The government’s plan to increase the population of the Kuala Lumpur area to 10 million from the current 6 million by 2020 will also spur greater property demand, he said. The population plan is contingent on more Malaysians moving into the Kuala Lumpur area and not on immigration, he noted.

—By CNBC.Com’s Leslie Shaffer

Republished from: http://www.cnbc.com/id/101035981

Forbes – Malaise Is Ahead For Malaysia’s Bubble Economy

“Plans to build the tallest building in Southeast Asia, the 118-story Warisan Merdeka Tower, are a major Skyscraper Index red flag.”

Read more: http://www.forbes.com/sites/jessecolombo/2013/10/15/malaise-is-ahead-for-malaysias-bubble-economy/

The Edge – Has the clearing of Merdeka Park been approved?

Written by Meena Lakshana, fz.com (contributor to theedgemalaysia.com)
Friday, 11 October 2013 10:45

KUALA LUMPUR (Oct 10): Were the necessary approvals obtained from the National Heritage Department for Tunku Park to house the Warisan Merdeka development project?

This was the question posed by Serdang MP Ong Kian Ming and Bukit Bintang MP Fong Kui Lun today during a press conference at the site.

Ong said according to a reply in Parliament from Tourism Minister Datuk Seri Nazri Aziz, Tunku Park, also known as Merdeka Park, is protected as a heritage site under Section 25 (1) of the National Heritage Act as it falls within the 200m buffer zone of Stadium Merdeka and Stadium Negara, both of which are heritage sites.

“Under the section, a site which does not have national heritage or cultural significance can be designated as such due to close proximity to other national heritage sites,” said Ong.

“It is a way to protect the nearby national heritage sites,” he added.

He said Section 40 of the same Act stipulates that the Heritage Commissioner shall coordinate and advise the local planning authority before any planning permission or development order is granted involving a heritage site.

Ong said this provision requires local authorities to seek approval from the Heritage Commissioner before any development order is issued on the site.

The clearing work at the park has already taken place, he added.

Meanwhile, Fong said City Hall has set several conditions for developer Permodalan Nasional Berhad (PNB) to fulfil before the development order is issued.

“PNB had all but one condition,” he said, adding the PNB has yet to fulfil the criterion involving the provision of access routes.

Fong said the entire area should be protected from the encroachment of any development as it is an important historical site of the country.

“This was the birthplace of the country. This is where Independence from the British colonial rule was declared,” he said.

“It is a very important site that all Malaysians should cherish and protect. This entire area has witnessed such an important part of our history,” he added.

He said the city already has so many unoccupied office spaces and the project will only be an addition to this.

It was reported in July this year PNB is in the final stages of getting the authorities’ approval for the redevelopment that includes a 118-storey tower Menara Warisan in the historical Stadium Merdeka and Stadium Negara area.

The RM5 billion redevelopment project will not only see the tallest skyscraper in Malaysia once it is completed but also a four star hotel as well as two blocks of 40-storey condominiums.

Several interest groups have criticised the project, arguing the project is a waste of money and would only add to the traffic congestion in the area.

PNB had acquired the 19-acre plot of land from Pengurusan Danaharta Nasional Berhad in 2000 for RM310 million or RM220 per sq feet but has since been estimated to increase in market value to RM800 per sq feet.

The development will sit on the car park and land adjacent to Stadium Negara and Stadium Merdeka.

The Edge Financial Daily had reported in 2010 that PNB group chief executive Tan Sri Hamad Kama Piah said the redevelopment project is a way for PNB to diversify the investment’s group asset portfolio.

He had said PNB expected between 8% to 10% of annual returns from the redevelopment project.

He had also said the government will not be funding the project, and PNB has the capital to finance the project gleaned from profits gained over the past three decades.

PNB has formed the PNB Merdeka Ventures as a wholly-owned unit to undertake the project.

Republished from: http://www.theedgemalaysia.com/in-the-edge-financial-daily-today/258310-has-the-clearing-of-merdeka-park-been-approved.html

The Sun Daily -Taman Merdeka Negara ‘protected’ but demolished

Posted on 10 October 2013 – 10:03pm
Last updated on 10 October 2013 – 10:26pm

KUALA LUMPUR (Oct 10, 2013): The protected status of Taman Merdeka Negara under the National Heritage Act 2005 did not stop its demolition to make way for RM5 billion Warisan Merdeka project, which includes a 118-storey tower.

A puzzled Serdang MP Dr Ong Kian Ming said Tourism Minister Datuk Seri Mohamed Nazri Abdul Aziz confirmed in a written parliamentary reply to the Dewan Rakyat on Sept 30 that the park was protected.

“The Minister told me that Taman Merdeka is in the buffer zone for Stadium Merdeka and Stadium Negara under Section 40(3)(a) of the Act,” Ong said at an in situ press conference accompanied by Bukit Bintang MP Fong Kui Lun.

He added that although the park was not gazetted as a national heritage site, he had been assured by the minister that it was already protected under Section 25(1).

Section 25(1) of the Act states that a site without natural or cultural heritage significance could still be designated as a heritage site by the Commissioner of Heritage because of its proximity and in order to protect and enhance the site.

Ong added that Section 40 of the Act allowed the Commissioner to coordinate and advise the KL City Council before any planning permission or development order is granted involving a heritage site.

Section 40(3)(a) includes any land adjoining within a distance of 200m from the boundary of the site as part of that consideration.

“Since Taman Merdeka Negara is within 200m of Stadium Merdeka and Negara, we want to know if the Commissioner (Prof Emeritus Datin Paduka Siti Zuraina Abdul Majid) has consulted the city council on the possible negative impact,” Ong said.

Fong said the significance of the stadiums would fade if the construction of the tower were to proceed. It was reported that the entire project construction is expected to take 10 years, beginning with the tower.

Republished from: http://www.thesundaily.my/news/852785

Free Malaysia Today – ‘Heritage Commission failed to protect tower site’

K Pragalath | October 10, 2013

A DAP MP asks why the Heritage Commission did not raise any objections over the construction of the Warisan Merdeka Tower.

KUALA LUMPUR: DAP MP Ong Kian Ming questioned today whether the Heritage Commission had played its role in protecting heritage sites that are endangered as a result of the construction of Warisan Merdeka Tower.

“Did Heritage Commissioner Professor Zuraina Abdul Majid raise objections against the construction of Warisan Merdeka Tower to the Kuala Lumpur City Hall (DBKL)? Ong asked during a press conference held near Stadium Merdeka.

“Since Taman Merdeka Negara is within 200m from Stadium Merdeka, we want to know if she has consulted the DBKL on the negative impact of the tower on heritage sites,” he said.

Ong said section 40 of the National Heritage Act empowered the heritage commissioner to coordinate and advise DBKL before a development order is given on plots involving heritage sites.

Construction of Warisan Merdeka Tower is expected to start this month and completed in 2015.

In July, Permodalan Nasional Berhad (PNB) president and chief executive officer Hamad Kama Piah Md Othman announced that PNB had obtained the development order from DBKL to construct the 118-storey skyscraper costing RM5 billion.

The project was announced by Prime Minister Najib Tun Razak as part of Budget 2012 and the contract was given to PNB.

A group of 30 non-governmental organisations have formed a coalition called Pertahankan Taman Merdeka Negara (PTMN) to oppose the project.

The project will involve the demolition of historical landmarks such as Merdeka Park, Chin Woo Stadium, Stadium Merdeka and Stadium Negara.

Taman Merdeka Negara, which is also known as Tunku Park, has been demolished.

‘DBKL is stupid’

Ong raised this issue today based on a written parliamentary reply he obtained from Tourism Minister Nazri Aziz on Sept 30.

Nazri in his reply stated that TMN served as a buffer zone to both the stadiums under section 40(3)a of the National Heritage Act.

Ong also questioned why there were no efforts by the Heritage Commission to designate Taman Merdeka Negara as a heritage site.

Section 25(1) of the National Heritage Act 2005 states that a site without natural or cultural heritage significance can be designated as a heritage site by the commission since Taman Merdeka Negara was within 200m from both the stadiums.

Section 40 (3) of the same Act empowers heritage commissioners to protect areas within the 200m.

Bukit Bintang MP Fong Kui Lun called upon DBKL to provide a social, traffic and environment impact assessment study since the tower would include a 90ft antenna.

“There are five schools in the area and the significance of these stadiums will diminish if the tower is built. DBKL is stupid to approve the project,” he said.

PTMN vice-chairman Ser Chon Ing questioned the legal implication of the Heritage Act against the construction of tower.

He said the area from Dataran Merdeka to the Kuala Lumpur Selangor Chinese Assembly Hall should be considered as national heritage.

Republished from: http://www.freemalaysiatoday.com/category/nation/2013/10/10/heritage-commission-failed-to-protect-tower-site/

Malaysiakini – MPs claim heritage under siege by Menara Warisan

4:29PM Oct 10, 2013

The government needs to halt the construction of the 118-storey Menara Warisan as its current construction site close to Stadium Merdeka may disturb an area that should be preserved under a national heritage rule, opposition parliamentarians have said.

DAP’s Bukit Bintang MP Fong Kui Lun and Serdang MP Ong Kian Ming (from left, in photo) questioned why the project has persisted even though it was on Tunku Park, situated within 200 metres of Stadium Merdeka and Stadium Negara, both protected under the National Heritage Act (2005).

“We want to know if the Commissioner of Heritage, Professor Siti Zuraina Abdul Majid, has consulted KL City Hall (DBKL) on the possible negative impact of the building of Menara Warisan on these two  national heritage sites,” Ong and Fong said in a statement.

They noted that Tourism and Culture Minister Mohd Nazri Abdul Aziz had replied in Parliament last month that the Tunku Park was in fact within the buffer zone of the two stadiums.

“We also urge the commissioner, with the full support of the tourism minister, to designate Taman Merdeka Negara as a Heritage Site,” the MPs said in a statement today.

Republished from: http://www.malaysiakini.com/news/243541