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Discussion Starter · #1 ·
TAK awarded 2 Pakistan deals worth US$11b

March 26 2005

MALAYSIA’S TAK Management Consultants Sdn Bhd has been awarded two mammoth property development contracts worth US$11 billion (US$1 = RM3.80) by Pakistan property tycoon Malik Riaz Hussain.

TAK, its strongest resume being the designer of Malaysia’s administrative centre Putrajaya, will design and build Phase 7 (US$6 billion), and Phases 8 and 9 (US$5 billion) of Bahria Town — a 4,860ha township in Rawalpindi, Pakistan.

The project is expected to take between 24 and 30 months to complete, with TAK as its sole designer. The company will, however, have to partner several local construction companies to undertake the project.

“We want more Malaysian companies to come and work with us. Pakistan needs about 700,000 houses a year, but the Government and the private sector can manage to churn out only about 300,000 ... we have a lot of work to do,” Malik, chairman of the Bahria group of companies, said.

He told Business Times that the Bahria group has enough cash reserves to pay the contractors on a “progressive payment” basis, thus minimising their risk. Bahria may also be willing to provide a mobilisation fee to the contractors.

Bahria has gained a reputation of being able to build high-quality houses, thus positioning Malik as the premier developer in Pakistan.

In his last property launch, Malik collected US$800 million (US$1 = RM3.80) in sales in the first five hours, and expects the same for its subsequent property projects.

Malik did not provide specific details of the contractual terms with TAK, but TAK managing director Teo Ah Khing said the contract was awarded to the company and that the Bahria group had given it the mandate to source for between 20 and 30 Malaysian construction firms to undertake the job.

“The contract has been signed and time is running. We will pick only companies that are capable of delivering,” Teo said, adding that TAK is already in negotiations with 10 listed construction companies and one privately-held construction firm.

“We want to work with committed companies,” Teo said.

He said the Bahria group is cash-rich and, as such, even the funding mechanism could be worked out.

The proposed Phase seven of Bahria Town covers an area of 880 acres. It will be developed into an integrated residential and golf and country resort.

This low-density housing development — which comprises about 3,000 units of semi-detached houses, 600 units of detached houses and 800 condominium units — is aspired to provide a quality living environment to the residents with quality public amenities and recreational facilities.

Phase eight and nine, on the converse, cover a site of 9,200 acres. The area will be transformed into a modern and sustainable city.

TAK said one of the major features of this town is a boulevard which forms a significant central axis and focal point along the commercial and institutional corridor.

“Our contract also includes building a monorail system. We are negotiating with KL Infrastructure Group Bhd (KLIG), Bombardier Inc and Hitachi Ltd for the job,” Teo said.

The first phase of the proposed monorail system will be 6km long and consist of four two-car trains. It will be built at an estimated cost of US$40 million per kilometre.

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Discussion Starter · #2 ·
Maxcorp-led group to develop RM3.2b Pakistan golf city

ISLAMABAD, 25 MARCH: Maxcorp Development Sdn Bhd is leading a consortium of Malaysian companies to design, build and manage the RM3.2 billion Bahria Golf City at Muree Expressway in Islamabad, Pakistan.

Besides Maxcorp, the Malaysian consortium comprises Ranhill Bersekutu Sdn Bhd, a wholly-owned subsidiary of Ranhill Bhd, which will offer its expertise in total engineering solutions, and Akitek Jururancang Malaysia (master planning and design).

Pakistan-based Bahria Town (Pvt) Ltd is the developer of the project while Pakistan-based Mansoor Mazhar and Associates is the architect.

The Malaysian consortium and Bahria Town (Pvt) Ltd signed an agreement on the project in Kuala Lumpur yesterday

The two-year project involves the development of 323.7ha at Murree Expressway. A total of 1,700 bungalows, a hotel, apartments, schools, a hospital, a commercial centre and an 18-hole golf course with a clubhouse will be built there.

Backed by strong house purchasing power in Pakistan, project returns are expected to be between US$10 billion and US$12 billion (US1 = RM3.80).

The project is also said to be the largest private sector initiative in real estate in Pakistan.

Maxcorp’s chief executive officer Anuar Adam, however, remained tight-lipped when asked on the source of funding for the massive project.

Ranhill Bersekutu and Akitek Jururancang will be paid RM50 million each in professional fees.

“The funding is being worked out. It is not a small amount. A lot of legal expertise and framework are being worked out between the Pakistan Government and Maxcorp,” he said after the signing.

Anuar said Maxcorp has no plans to float its shares on Bursa Malaysia Bhd for project funding, as it will be self-financed.

Maxcorp has been involved in projects in Pakistan since 1999 and has successfully completed the Royal Palm Golf Course in Lahore. Its current projects include DA Country and Golf Club in Karachi, Jacaranda Club for Defence Housing in Islamabad and Mangla View Resort.

The total investment value for the three projects is RM1 billion.

Meanwhile, Bahria Town chairman Malik Riaz Hussain is inviting more Malaysian companies to undertake development projects in Pakistan.

Bahria Town, which is said to be the single largest developer in Pakistan, has four other projects in the pipeline. They are Bahria Lake City in Lahore; Bahria Margalla City, Bahria University and Bahria Twin Towers in Islamabad. The total project value is about US$35 billion.

“Based on our track record and the severe shortage of houses in Pakistan, we are convinced that Bahria Golf City will be a success,” Malik said.

In his last property launch, Malik collected US$800 million in the first five hours of the launch, and expects the same for its subsequent development projects.

“There is demand for about 700,000 houses a year, but the Government and private sector can only manage to churn out about 300,000. This is why I am so confident,” Malik said.

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Discussion Starter · #4 ·
The same company is also developing the GHQ (General Headquarters) in the capital (Islamabad). The GHQ would be the exact same copy of the Putrajaya city, but on a smaller scale, but it'll still be huge, would cover 2,800 acres of land.

TAK is doing big business in Pakistan.
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