KUALA LUMPUR, Oct 24 — The federal government announced today its best and final offer of RM1,000 per square foot (psf) for land in the Kampung Baru Malay enclave here, up from RM850 previously.
Federal Territories Minister Khalid Samad said landowners who accept the offer are also eligible for a 15 per cent discount when buying property that will be developed on the acquired land.
“I had the opportunity to discuss the matter with Prime Minister Tun Dr Mahathir Mohamad and he has subsequently endorsed the new offer,” he said during a press conference at Kuala Lumpur City Hall (DBKL) today.
According to Khalid, 85 per cent of the price will be paid in cash or other means of the seller’s choosing while the addition announced today will come in the form of shares in a special purpose vehicle (SPV) that will be established in the future.
As for the 15 per cent discount, Khalid said landowners who opt for this offer must finalise their choice at the point of agreement. Any changes after that will not be entertained.
Elaborating further on the SPV shares, Khalid said existing landowners will still have a 15 per cent stake in the landownership which will allow the latter to voice their suggestions on the proposed redevelopment structure such as building design.
“This does not equate to relinquishing their ownership fully and they do not lose total control.
“When the redevelopment is completed, they will get a share of revenue according to their ownership percentage,” he added.
Khalid also urged landowners to submit their feedback forms to the Kampung Baru Development Corporation (PKB) by the November 30 deadline that was fixed after a town hall meeting in September.
“We are urging all Kampung Baru landowners who are involved to submit their feedback forms on their agreement to the redevelopment plans, inclusive of those who previously voiced their disagreement.
“Those who have already submitted and stated their agreement need not resubmit as the government will take into account their agreement on the new offer automatically,” he said.
According to Khalid, the latest land buyout offer of RM1,000 psf for a total of 153 acres will cost the government around RM6.7 billion.
He said, however, this was not the final price, as the nature of the structures to be built on each lot might add further value to the land.
When asked how the government will fund the RM6.7 billion for the land purchase, Khalid said a special allocation will be raised through other financial means and not from federal funding.
Khalid also dismissed rumours alleging the government’s forceful eviction of residents for the sake of development, saying the government was sincere in its offer to relocate existing landowners back to Kampung Baru after it is redeveloped.
“We want to encourage these people to continue to remain a Kampung Baru resident and be involved in the redevelopment plans even though there are changes.
“If possible, we want the original residents to take up at least half of the redeveloped residence units in the future,” he added.
Following today’s announcement, Khalid said PKB officers will meet each affected lot’s owner and explain the government’s latest land acquisition offer.
“If possible, we expect June 2020 to finalise everything including the agreement of all affected landowners,” he said.
On October 6, Dr Mahathir said the land acquired in Kampung Baru, Kuala Lumpur would be alienated exclusively to a government agency for development, in a bid to allay concerns it will go to private interests.
He said that the government agency will help landowners develop Kampung Baru without neglecting the original features of the location.
On September 21, Khalid said the government was offering to buy land in Kampung Baru here at the rate of RM850 per square foot, as compensation to landowners and heirs, in return for the redevelopment of the area.
However, most residents felt the offer was unreasonable given the strategic location of the settlement and asked the government to review it.
Kampung Baru sits on 220 acres of premium land in the heart of the capital city. Right next to it is the iconic Petronas Twin Towers, where the land is valued at RM3,000 per square foot.