KUALA LUMPUR, Oct 25 — Felcra Bhd needs to sell its incomplete Menara Felcra and related mixed development along Jalan Semarak to ensure its cash flow and finances are adequate to pay dividends and cost of living assistance to its members, said Datuk Seri Azmin Ali.
The economic affairs minister told the Dewan Rakyat today that this was also a strategy to preserve Felcra’s financial health as it no longer has money to continue funding the project.
“The project must be saved so it will not impact Felcra’s 96,137 members and their dividends and cost of living assistance.
“The 4.02 acres land is valued only at RM115 million, we cannot allow the land to remain without increasing its value,” said Azmin during Question Time.
The total gross development value of the project is estimated at RM1.1 billion. Upon completion, there will be a 35-storey office tower, a 40-storey serviced apartment block with 480 units, and a six-storey commercial centre with a two-storey convention hall.
Originally, the project’s contractor was to design, build and finance it, before handing over the convention hall and the office tower to Felcra.
However, after completing 41.22 per cent, the project was delayed by 96 days and the contractor requested to mortgage the land, but Felcra did not agree.
In order to continue with the project, the concept for the contractor was changed to design and build while Felcra had to provide financing for the project to the tune of an additional RM400 million on top of the RM200 million already invested.
Azmin said Felcra was still open to the best offers and might even retain the office block while selling the rest of the assets on the land if it received the right offer.