Property Hunter Magazine August Issue 2014 | Page 36

/// West Malaysia Property News

S P Setia Seals Deal for Bangsar Land
S P Setia will pay the government RM217.1 million
as minimum guaranteed profit (MGP) for the
planned mixed development at the Bangsar land
to carrying out the 1NIH project.
“In the event 20% of the actual profit before
tax for the relevant phase of the development
is higher than the MGP, SFHSB shall pay the
government the sum representing the difference
thereof,” the company said in its filing in 2012.
S P Setia said it plans to develop luxury residential
apartments and integrated commercial products
such as boutique and strata offices, which will
appeal to buyers seeking upmarket properties
within the affluent Bangsar and Federal Hill areas.

Conditions for a privatisation agreement between
the government and S P Setia Bhd which will see
the latter secure a 21.2ha land in Jalan Bangsar
has been fulfilled, reported The Sun Daily.
SP Setia said its subsidiary Setia Federal Hill Sdn
Bhd (formerly known as Sentosa Jitra Sdn Bhd)
(SFHSB) has satisfied all conditions precedent set
out in the privatisation agreement and that the

effective date of the agreement is on June 17,
2014.
Under the agreement, in exchange for 21.2ha of
land in Bangsar SFHSB will build a new integrated
health and research institute and 1National
Institute of Health (1NIH complex) in Setia Alam,
Selangor. The total contract value for the 1NIH
project is RM845 million.

In the event 20% of the actual profit
before tax for the relevant phase of
the development is higher than the
MGP SFHSB shall pay the government
,
the sum representing the difference
thereof,” the company said in its filing
in 2012.

Ekovest to Get Grant for the Gateway @ KL Bund
The company said in its filing with Bursa Malaysia
that the Government, through the Public
Private Partnership Unit in the Prime Minister’s
Department, would provide its unit, Ekovest
Properties Sdn Bhd a grant of not more than
RM117 million or 5% of the actual construction
costs of the project, whichever is lower.
The grant is to facilitate the development of the
project, which comprises planning, designing,
financing, development, construction, completion,
testing and commissioning of a commercial
development, namely, The Gateway @ KL Bund.
The project will consist of 300 1Malaysia People
Housing Programme affordable homes, 320
units of Riverfront service apartments, hotel
and offices, executive small-office-home-office
suites, a lifestyle shopping mall, and Riverfront
residences.

Mapping of 3 project sites

Ekovest Bhd has entered into a facilitation fund
agreement with the Government and Bank
Pembangunan Malaysia Bhd, which could see
it receiving RM117 million in grant for its The
Gateway @ KL Bund project.

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There are also the necessary facilities and
infrastructure, including water canals and a
central lake plaza, underpass and ramps. “The
grant shall be used solely for the purpose of
funding such costs and expenses relating to or in
connection with the project,” said Ekovest.
The facilitation fund is an initiative provided by
the Government to encourage implementation of
private sector projects.

The grant will only be disbursed once the project
is completed, hence Ekovest does not expect any
immediate effect to the group’s earnings for the
financial year ending June 30, 2014.
“Nonetheless, the overall infrastructure
development cost of the project is expected to
be reduced upon disbursement of the grant
to Ekovest Properties and this is expected to
contribute positively towards the earnings and
net assets of the group,” it said.
The facilitation fund is subject to Ekovest fulfilling
several conditions including proving that it has
the capacity to finance the project. It also has to
show that it