No changes made to SPA to date with TRX City to develop piece of land into a residential project
By MARK RAO / Pic By AFIF ABD HALIM
WCT Holdings Bhd has maintained that the company intends to develop the land owned by its indirect unit in Tun Razak Exchange (TRX) into a residential development.
The engineering, construction and property group said that its indirect wholly owned unit WCT Precious Development Sdn Bhd (WCTPD), which had acquired the 1.65-acre (0.67ha) plot in TRX, is not involved with China Communications Construction Co Ltd’s (CCCC) plans to set up an Asean hub at the site.
“To date, there has been no change of plan to develop the land into a residential project.
“We wish to clarify that WCTPD is not involved in CCCC’s proposal to set up its regional centre in Kuala Lumpur as reported in the news recently,” said WCT corporate strategy director Ng Chee Kiat in an email reply to The Malaysian Reserve.
He said since entering the sale and purchase agreement (SPA) with TRX City Sdn Bhd (formerly known as 1MDB Real Estate Sdn Bhd) in 2015, there have been no changes made to the agreement to date.
But Ng said, as announced by WCT on Aug 29, 2017, WCT Land Sdn Bhd and WCTPD had entered into a shareholders’ agreement with CCCG Overseas Real Estate Pte Ltd (CORE), for the proposed joint development of the land purchased by WCTPD from TRX City in 2015.
“CORE proposes to nominate CORE (Singapore) TRX Investment Pte Ltd and China Communications Construction Co (M) Sdn Bhd, to hold 65% and 15% in WCTPD respectively,” he said.
In September, CCCC said that the state-owned firm plans to make Kuala Lumpur the hub for its Asean region and the company plans build the commercial building dubbed as “CCCC tower” in TRX.
“We will set up our regional centre in Kuala Lumpur,” CCCC VP Peng Dapeng was reported as saying.
In October 2015, WCT announced that its wholly owned subsidiary, WCT Bhd, (WCTB) was awarded a RM755 million contract for the proposed construction and completion of infrastructure and roadway at TRX.
The company also announced that WCTPD was acquiring a 1.65-acre land in TRX from 1MDB Real Estate for RM223 million, or RM3,098 per sq ft. The company planned to develop a tower block comprising high-end serviced apartments with some retail components.
Payment for the land in TRX, WCT said, will made by “way of set off against the corresponding milestone payment” for infrastructure contract sum payable by 1MDB Real Estate to WCTB.
“Therefore, the land purchase will not have any material impact on the gearing of the WCT Group,” the company had said.