Sunday, January 6, 2013

Prasarana to be property developer

MRT firm goes big on property

Syarikat Prasarana plans to step up developments around its train stations
By Pauline Ng

Public transport in the Klang Valley and some of the country's bigger cities has become a priority for Putrajaya after decades of neglect as Malaysians decry every attempt to increase fuel prices as unreasonable given the lamentable rail and bus services - Photo: Bloomberg

TO defray some of the massive costs incurred in public transport infrastructure projects, Syarikat Prasarana Nasional Bhd is planning to step up real estate development around its train stations and list its rail operations in 2018, after the first Klang Valley mass rapid transit (MRT) line is completed in 2017.

The state-owned transport operator is looking at real estate with an estimated gross development value (GDV) of over RM3 billion (S$1.2 billion) to be undertaken in a joint venture with developers.

"We are going big into property and commercial," group managing director Shahril Mokhtar said at a press briefing yesterday.

Prasarana derives 8 per cent of its revenue from non-fares - 92 per cent comes from fares - but aims to increase the share to 20-30 per cent by 2017 without incurring "a single sen" since its partners would be building on land owned by the Federal Land Commissioner.

Latest property projects involved mixed-developments in
> Brickfields and Ara Damansara worth RM1.2bil and RM700mil in gross development value (GDV) respectively.

> Ara Damansara development last year to Trans Resources Corp Sdn Bhd in a joint venture and will announce the contract owner for the Brickfields project by the end of next month.

>joint venture with Crest Builder and Detik Utuh Sdn Bhd to develop RM1.04bil of retail, offices and serviced residences adjacent to the Dang Wangi LRT station.

It expected to gain RM220mil from its 21.2% share in the project.

Another JV is with Naza TTDI Ventures to build RM155.3mil of residences in Taman Tun Dr Ismail, Kuala Lumpur.

A woman walks past the MRT Information Truck in Kuala Lumpur. Prasarana is keen to list its rail business on the stock market by 2018 when the Sungai Buloh-Kajang MRT system is completed.