Nanyang Siang Pau, 25 June 2014 - Plaza Rakyat agreement has extension

Nanyang Siang Pau, 25 June 2014

Ivory seeks pact extension for Plaza Rakyat project

IVORY Properties Group Bhd is applying for an extension of the conditional acquisition and rehabilitation agreement (ARA) with Plaza Rakyat Sdn Bhd to acquire the leases and development rights of the project land. Ivory Group chief executive officer Datuk Low Eng Hock yesterday said the last extension obtained ended on June 4 and Ivory needs more time to meet the conditions stated in the ARA.

"Our proposal to Datuk Bandar Kuala Lumpur has given special interest of the end-purchasers whose deposits have been tied up by the project during their purchase from the previous developer and we hope to help solve their woes soon," he said after the company's shareholders' meeting.

Last September, Ivory Properties said that its subsidiary, Ivory Place Sdn Bhd, had won an open tender by Plaza Rakyat to revive the Plaza Rakyat mixed-development project in Pudu, Kuala Lumpur, which had been abandoned for 15 years due to the Asian financial crisis.

The company said it planned to redevelop the 6.163ha prime site with properties worth about RMS billion in gross development value over eight years.

On another matter. Low said a joint venture company set up between Ivory and Tropicana Corporation Bhd which has been set up to oversee the Penang World-City development will be rolling out Phase 3A of the development by the end of the year following overwhelming success of Phase 1A sales.

"We managed to achieve over 90 per cent sales for Phase 1A, so we have decided to release the next phase to cater to increasing demand," he said, adding that the market would have sustained demand.