Pudu jail redevelopment partners chosen on mega projects exposure : UDA

KUALA LUMPUR: UDA Holdings Bhd, which will partner both Eco World Development Group Bhd and the Employees Provident Fund (EPF) to develop the RM10 billion Pudu jail redevelopment project, evaluated proposals from three companies and identified its partners based on financial performance and experience in mega projects, Bernama reported.
Eco World and UDA will have a 40% stake each in the project, while the EPF will own the remaining 20%.
"The EPF is involved in the Battersea Power Station Development Project in London, and the same goes with Eco World, which has also participated in a consortium project before.
"We cannot afford to fail in this project, and that is also the reason why we took a number of years to conduct a study before starting the project," the news agency quoted chairman Datuk Johari Abdul Ghani as saying.
He refuted news of direct negotiations between UDA and Eco World, saying that local companies had submitted proposals, but Eco World was selected based on the specific requirements and its ability in handling huge projects.
The 5 million sq ft development will comprise retail malls, an entertainment hub, strata offices, a super skyscraper signature tower and serviced apartments.
Asked on the impact on UDA's business, Johari said the rental income would be one of the major contributors to the group's earnings.
"The income from Bukit Bintang City Centre (BBCC) will be channelled to build affordable houses in Kampung Baru," he said.
The project's timeline is expected to be about five to seven years and, upon completion, the recurring income from space rental is projected to come to about RM160 million annually.
According to Johari, BBCC will have 50% participation by bumiputra contractors, in line with the Economic Transformation Programme agenda, which seeks to have more bumiputras involved in mega projects.
"However, we will ensure that only qualified bumiputras are involved in the project and it is not handed over to a third party," he told a media briefing yesterday.
The cost of the project to redevelop the former Pudu Jail site is estimated at RM5 billion.