Press statement by Teresa Kok, Exco of Selangor & State Assemblyman for Kinrara on 27 November 2012 at Shah Alam
Explanation on 9 acres of land to Bukit Hitam Development Sdn Bhd & 1.8 acres land given to SJKC Sin Ming at Bukit Puchong
1) SJKC Sin Ming faces an increase of student numbers since 10 years ago. They faced difficulties to get land from it’s neighbouring land owner, i.e. Bukit Hitam Development Sdn Bhd (BHDSB) due to various reasons. SJKC Sin Ming then sought the assistance of MCA leaders but to no avail, the school was then forced to decline more than one hundred students per year in the past few years, who could have been admitted if they had secured the neighbouring land.
2) On 22ndFebruary 2009, Pakatan leaders including Dato’ Seri Anwar Ibrahim, MB of Selangor Tan Sri Khalid Ibrahim, excos and MPs attended a Chinese New Year event organized by the SJKC Sin Ming school board at the school. The MB of Selangor promised to assist the school to acquire the land for SJKC Sin Ming should Bukit Hitam Development Sdn Bhd refused to give/sell land to the school.
3) After that, we found out that BHDSB has converted the neighbouring lot of SJKC Sin Ming to commercial land since year 2007. So even if the Selangor state government acquired the land for SJKC Sin Ming, the school board would not have been able to pay the acquisition cost.
4) In 2011, after discussing with BHDC, state government, MPSJ and SJKC Sin Ming then worked out a win-win solution for the school, that is BHDSB gives 1.8 acres of land to SJKC Sin Ming (at current market rate of RM95 psf : total market price is RM7,448,760), in exchange for BHDSB to get 9 acres of industrial land elsewhere and to contribute RM25 million to MPSJ to build a stadium next to the said land.
5) The said 9 acres of industrial land is located at Bandar Bukit Puchong. The original land owner is BHDSB, the land was then surrendered to the state to build a sports complex pursuant to the Development Order. However, no development took place as the state was short of funds.
6) The market value of the unconverted land is valued at RM63.76 psf by private valuer. Based on this cost breakdown, the developer’s cost to complete the high tech industrial land isRM136.31 psf.
7) In view of the fact that the 9 acres of land is state land, the Selangor state government, and not MPSJ, has the right or power to alienate the said land to BHDSB. The Selangor state exco approved the land swap exercise on 2 November 2011 at MTES meeting and subsequently endorsed by exco meeting on 30th November 2011, as a measure to assist SJKC Sin Ming to resolve the acute congestion at the school.
8) The land deal above is based on valuation done by TD Aziz Sdn Bhd dated 6 September 2011. No open tender was called due to the urgency of the matter as SJKC Sin Ming was in pressing and urgent need to start construction of it’s school hall and classrooms at that material time. As mentioned earlier, the school has requested for the neighbouring land since year 2001, and the MB has promised to acquire the land for the school since February 2009.
9) The cost breakdown of development of the 9 acres of industrial land show that BHDSB has to pay a much higher price than RM25 million to develop the said land, i.e. RM53,437,760. This include conversion premium, consultant’s fees, legal fees, stamp duties etc. The cost breakdown of the 9 acres of industrial land is as follow:
BUKIT HITAM DELOPMENT SDN BHD
Proposed Sports Complex and Industrial Land
– Detail Cost Breakdown
|
Item |
Descriptions |
RM (Million) |
|
1 |
9 acres of land to Bukit Hitam Development S/B |
25,000,000.00 |
| (Valuation RM63.77 psf – unconverted land | ||
| TD Aziz report V/002/0911/MV) | ||
|
2 |
1.8 acres of land to SJK (C) Sin Ming |
7,448,760.00 |
| (1.8acres @RM95psf Commercial & Petro land | ||
| TD Aziz report VI/014/MY10 & VI/015 MY10) | ||
|
3 |
Conversion premium |
6,250,000.00 |
| (25Million x 25%) | ||
|
4 |
Infra works |
6,750,000.00 |
|
5 |
Legal fees |
250,000.00 |
|
6 |
Consultant fees |
3,375,000.00 |
|
7 |
Authority contribution (20% of item 4 above) |
1,350,000.00 |
|
8 |
Stamp duty on transfer |
744,000.00 |
|
9 |
Quit rent + assessment (overpaid by BHD) |
2,270,000.00 |
|
10 |
Total Estimated cost for the above transaction |
53,437,760.00 |
|
11 |
Total per sq. feet for 9 acre of land |
136.31 |
Please see the related news reports:-
Puchong Land Swap Deal Raises Concerns Over Valuations