THE revival of an abandoned integrated development in the heart of Kuala Lumpur’s shopping belt should erase a decade-long eyesore in the federal capital.
The former Menara Li Foong, just a stone’s throw from one of the nation’s biggest shopping centres, the Berjaya Times Square, is being rescued by Bluestone Group Malaysia (BGM) and Allco Funds Management (Singapore) Ltd (Allco FMSL).
BGM through its wholly-owned subsidiary Taragon Capital Malaysia (TCM) recently signed a development agreement with Allco FMSL to revive and develop the uncompleted building into a RM200mil commercial project called Puteri KL.
Allco FMSL manages a suite of private equity and mezzanine funds. It is a subsidiary of Allco Finance Group Ltd, one of Australia’s leading financial services companies that specialises in asset-based structured financing and fund management activities principally in the aviation, property, rail, shipping and infrastructure sectors.
BGM will provide project management, development and real estate management services, while Allco FMSL will provide finance structuring and funding through equity investment in the project.
“We are working with a local bank to structure a blended financial facility, combining a mezzanine facility with senior debts. Once finalised, this blended financial facility amounting to RM60mil will be the first of its kind in Malaysia,” BGM managing director Sim Kay Huan told StarBiz.
He said the project would be re-designed to meet current market needs. Menara Li Foong was originally planned as a six-storey shopping centre with two 28-storey towers – one tower for a hotel and the other for offices.
Sim said the shopping centre plan would be scrapped, as there were already many such centres in the area.
“We’ve not finalised our plans but are still fine tuning them. It will be commercial with a small retail component. The cost of completing the project is estimated to be in the region of RM100mil to RM120mil,” he said.
Why did BGM pick this particular project?
Sim said BGM had done a due diligence study of the project’s viability and among the selection criteria was that it must be of a reasonable size and one that BGM could make money out of.
As such, the project with its excellent location is considered a good choice.
“We are talking to some potential investors who may just take up a block. We intend to change the design, knock off some parts of the building and bring the swimming pool down from level 7 as per its original design,” Sim said, adding that construction was expected to begin next year and targeted for completion at the end of 2009.
Puteri KL upon completion will have a net area of more than 42,000 sq metres.
Sim said Puteri KL’s small retail component could have a “Little China” theme specialising in China-made products. He said the joint-venture agreement with Allco FMSL was an important milestone for BGM's growth plans.
“We will be the first in this country to secure a working partnership with Allco FMSL. We have the opportunity to work with a partner, who is part of a reputable group that has an impressive track record in the international arena for innovative asset-based structured financing, particularly in the property sector,” he said.
Allco FMSL director Sheldon Lee said the company was impressed by the level of professionalism demonstrated by BGM team.
“As this is our first entry into the Malaysian market, we can find no better partner than BGM. Their understanding, experience and knowledge of international due diligence requirements and their adoption of international stringent risk management measures will be invaluable in our co-operation,” Lee added.
I am very happy if this project somehow finishes some time in the future!Its right behind my zero bintang at bukit bintang hostel!Jalan thambi dolah might not be so interesting now but give it a few months, its going to be a very busy road because its going to be linked to the putrajaya highway and the smart tunnel!I wish shaw parade owners do something about building too!
+ Niche project
+ Low density
+ Maximum privacy
+ City View
+ Inner-city living
+ 24-hour security
+ Swimming and wading pool
+ Barbeque area
+ Multipurpose hall
+ Superb location – accessible from Jalan Sultan Ismail in March 2007
+ A new 3 in 1 concept. Leisure, hospitality, retail and residences in one building
+ The proposed Building is under negotiation to be managed by an international hotel chain – First of its kind to
ensure quality living and international standard of property management
The tentative planning for the whole building includes:-
Basement : 577 car parking bays
1st Floor – 2nd Floor : 133 car parking bays
3rd Floor : Recreation, Swimming Pool & SPA
Hotel Block Lower Ground / Ground - reception, reception and retail units
Level 4 to Level 27 - 388 hotel suites
Residences Block Level 4 to Level 27 - 193 units of quality serviced condominiums
If they should continue with this project its trully good news! i suspect they will start soon they have finally taken down the tower cranes few weeks ago.
Soon jalan changkat thambi dolah will be link to the kampung pandan roundabout also the smart tunnel from what heard from the guys working on that project they targeting end of march to open up the new sultan ismail link to the kampung pandan roundabout!!
A forum community dedicated to skyscrapers, towers, highrises, construction, and city planning enthusiasts. Come join the discussion about structures, styles, reviews, scale, transportation, skylines, architecture, and more!