Revival of abandoned RM1.4bil 79-storey Plaza Rakyat near Pudu bus terminal

By CHOONG EN HAN

PETALING JAYA: Interested parties can now submit their proposals for
the rehabilitation of the long abandoned Plaza Rakyat project located
along Jalan Pudu and beside the Pudu bus terminal in Kuala Lumpur.
The receiver and manager of Plaza Rakyat Sdn Bhd,
Adamprimus, has placed an advertisement in several publications calling
for parties with proven track records in integrated property
development and strong financial background to “express their interest”
by submitting proposals for the project, which was abandoned in the
aftermath of the Asian financial crisis of 1997/1998.
The project, spread over 15.3 acres of prime land in the city centre, was first mooted in 1995 by Wembley Industries Holdings Bhd, a company linked to Sarawak-based tycoon Tan Sri Ting Pek Khiing (pic inset), in collaboration with Kuala Lumpur City Hall.
Plaza
Rakyat, which was planned almost at the same time as the iconic Suria
KLCC project, was then envisioned as an RM1.4bil multi-modal transport
terminus and commercial and residential project in the heart of the
capital.
The original plans comprised a 79-storey office tower, 46-storey condominium, 24-storey hotel and 7-storey shopping centre.
Zerin Properties chief executive officer Previndran Singhe told StarBiz
that the project was supposed to transform the area as a transportation
hub with hotel and mall elements. The only reminder of the hub is the
Plaza Rakyat LRT station.
“Generally, when receivers and
managers come into the picture, they would be looking to secure and
realise the assets of the said company in order to manage the affairs
of the company to discharge the debts owning,” Previndran said.
A quick Internet search by StarBiz
revealed almost nothing of Adamprimus, with its website address
directing to a non-functioning site. There were also no other
information on the Internet about the company, a restructuring and
reorganisation specialist, according to the advertisement.
This would not be the first attempt to revive the project as efforts were made in 2003 by a Ting-related company, Global Upline Sdn Bhd, which was appointed as the turnkey contractor, taking over from Daewoo Corp, the original contractor who had completed about 30% of the project.
However,
Global Upline withdrew from the job as it could not accept certain
undisclosed conditions. Ting remains chief adviser of Global Upline.
Since then, the project has gone through a merry-go-round of contractors, as after Global Upline withdrew, it was awarded to PJ Indah Sdn Bhd, a unit of PJ Indah Holdings Bhd, now known as PJI Holdings Bhd and a property-cum-construction outfit but the contract was mutually terminated.
It was then awarded to Jetwork Engineering Sdn Bhd
in 2005 but ended back up with Global Upline in 2007 with plans to
complete the project in five years but nothing has moved since then.
Global
Upline did not come up with a plan to revive the project even after it
was given an ultimatum by the Government in 2009, who also threatened
to hand the project to another developer.
When the Government
eventually terminated the contract for the development on the 6.322
million sq ft leased from City Hall for 88 years, a court injunction
ensued with Global Upline seeking RM1bil in compensation.