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Corporate Announcement
SMTrack is a frontrunner as PMC in RM1.2b redevelopment project in Kampong Bharu
Published:  Feb 28, 2022 8:00 AM
Updated: 8:00 AM

Bursa Malaysia listed radio frequency identification (“RFID”) solution provider, SMTrack Berhad (“SMTrack”) is in an advanced stage of discussion with the relevant parties for its involvement in the RM1.2 billion redevelopment project in Kampong Bharu.

On 26th January 2022, Jiankun International Berhad (“Jiankun” or “Group”) has entered into a joint venture (“JV”) agreement with Menara Rezeki Sdn Bhd (“Menara Rezeki”) and Menara Rezeki Properties Sdn Bhd (“Menara Rezeki Properties”) to undertake the proposed redevelopment of the existing Flat PKNS Jalan Tun Razak in Kampong Bharu.

SMTrack’s Deputy Executive Chairman, Azmi bin Osman, said, “The high-level negotiations with Jiankun on the potential bid to be the project management consultant (“PMC”) for the redevelopment project has entered into advanced stages, and we are excited and thrilled with the prospect of such an opportunity. We bid for this role due to the project's strategic location, size, and job scope. Given our expertise and efficient project management experience, we believe this will be a win-win collaboration for both companies.”

The proposed redevelopment project includes relocating existing residents into a new apartment with a comprehensive compensation package. Once the relocation has been completed, the demolition of the Flat PKNS will be conducted responsibly without affecting the local communities in the area. This would then be followed by the redevelopment and construction works. 

According to Azmi, the redevelopment project is a promising prospect for the Group given SMTrack’s expertise and track record in project management.

“This is a good opportunity for us to utilise our expertise and healthy financial position through value-accretive efforts such as this to enhance the earnings visibility of the Group going forward,” Azmi said. 

Aside from the potential return of earnings to SMTrack, the Group is also relishing the opportunity to contribute to the community through this redevelopment project. 

Given the positive impact of this project, which includes the encouragement of new investment, improves local infrastructure and provide multiplier effects that benefit the local communities, the Group is excited as it fits into SMTrack’s philosophy. 

“I wish to reiterate that while the advanced talks with the relevant parties have been promising, nothing is confirmed at this point in time. A detailed announcement will be made in due course pursuant to the listing requirements of Bursa Malaysia once the Company has obtained further information,” Azmi added.  

On 26th February 2022, Jiankun International Berhad (“Jiankun” or “Group”), a Main Market-listed company primarily involved in the property development business, and Menara Rezeki Sdn Bhd (“Menara Rezeki”), meets up with the existing residents of Flat PKNS to discuss the details of the redevelopment project. 

The redevelopment project with a gross development value (“GDV”) of RM1.2 billion will be undertaken by Menara Rezeki Properties Sdn Bhd (“Menara Rezeki Properties”). Jiankun and Menara Rezeki have 70% and 30% stake in Menara Rezeki Properties respectively and will be the core developers of the redevelopment project.

The event was attended by the Mayor of Kuala Lumpur, Yang Bahagia, Datuk Seri Mahadi Che Ngah, Puan Norafiza Jamaluddin from Bank Rakyat, who is representing the CEO of Bank Rakyat, Dato Syed Abdul Aziz Syed Hassan, and Mr. Lyu En, Managing Director of China State Construction Engineering (M) Sdn Bhd, who is the potential main contractor for the redevelopment project.

It was launched by Dato’ Saiful Nizam Mohd Yusoff, Managing Director ofMenara Rezeki Properties, Che Zul, General Manager of Menara Rezeki Properties, and Encik Azmi bin Osman, Executive Director Jiankun.

This content is provided by Aegis Communication Sdn Bhd.

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