With the RM1,000 per square foot (psf) price being the highest offered for Malay Reserve Land, the government is confident that Kampung Baru property owners will accept the offer.
Speaking at a press release, Federal Territories Minister Khalid Abdul Samad noted that the offer is equivalent to RM43.5 million per acre, reported Bernama.
The offer comprises RM850 psf, which the property owners can choose to accept in the form of cash, a completed condominium or apartment unit (to be built as part of the government’s redevelopment plans for the area) or a combination of a completed unit and cash.
The remaining RM150 psf will be given in the form of shares in a Special Purpose Vehicle (SPV) company that is set up in connection with the redevelopment project.
Khalid revealed that 1,716 of the 5,359 property owners have already responded to the government’s offer, of which 93.7% had agreed to sell, 6.2% disagreed and 0.1% did not respond clearly.
The minister also dismissed the recent observation made by former Finance Minister II Datuk Seri Johari Abdul Ghani that it was illogical for the government to require a 100% consent among all owners regarding the sale of their property.
“We, the government, urge and appeal to all owners to come back to the original intention behind the establishment of Kampung Baru, which was to ensure there was an appropriate number of Malays in Kuala Lumpur,” said Khalid.
“We need to develop Kampung Baru so that the number of Malay residents in Kuala Lumpur can be increased.”
According to him, it would be prudent for property owners to accept the present offer since it would be difficult in the future to address ownership problems in Kampung Baru given that a property grant may contain various heirs, with some listing up to 150 names each.