Daunting obstacles face abandoned project

The Sun 21/3/2005

KUALA LUMPUR: Mas Kiara. That was the name of the abandoned condominium in Sungei Penchala just next to Taman Tun Dr Ismail.

According to the Ministry of Housing and Local Government, the developer, Pinggir Kiara  Sdn Bhd folded up in February 2003 and a liquidator for the project was appointed last August.

Believed to be abandoned in 1998, the project on Malay Reserve land was to comprise 218  units pegged from RM187,800 for the intermediate units. The penthouse units were said to cost  more than RM600,000. The landowner is believed to be a member of a royal family.

The sight of the abandoned project comprising two blocks is visible as one travels on the  Penchala Link. It is also obvious to those traveling on the end of Jalan Datuk Sulaiman nearer  to the Penchala Link.

theSun had earlier reported about the difficulties in reviving the project (see flashback), given  the protracted delay which will translate into a huge quantum of late delivery charges. Apparently, some 75 % or of the units have been sold.

The project was near 50 % completed before work stopped. Assuming that the units should have been handed over to buyers seven years ago and on the basis that a unit cost RM180,000, the late delivery charges due to each buyer would work out to RM50 a day or about a whopping RMI26,000 for the seven years.

A source who owns a one-acre plot near the abandoned project site dispels any notion that the project had failed because of its "Malay Reserve" status.

The source says that people had been speculating that the project failed because the developer  was unable to get buyers. "Such speculation is not true. 1 believe most of the units were sold.

Problems came about because of some payment issues between the landowner and contractor." In fact, the owner is so confident about the address that he also plans to build a condominium on his Malay Reserve land. "I believe it will do well, given the location and the area's new accessibility appeal with the Penchala link," he says.

The landowner has a suggestion: In view of the greater development plans that he expects to unfold there, a joint committee comprising land-owners, developers and the government should be formed to draw a proper development master plan so as to avoid haphazard building.

Food for thought indeed.