[sustran] Re: Transportation investments and real estate values

Tony Barry tjb at pc.jaring.my
Mon Aug 9 21:13:00 JST 1999


Just catching up with my unread email:

At 10:16 19/6/99 +0800, you wrote:
>At 18:25 18/06/99 -0400, Tony Plumbe wrote:
>>The Light Rail Transit new lines in Kuala Lumpur are 
>>partly financed I understand by allowing the private 
>>companies developing the lines also to develop shopping 
>>centres at selected stations and recoup their costs 
>>through rental of the shops. The same principles are 
>>used in many BOT type contracts in Asia.
>


snipped

>I don't know if the second LRT system, PUTRA LRT, has rights to develop
>real-estate around stations. It may be so, at least indirectly, since PUTRA
>is owned by a large business conglomerate called Renong. There are at least
>two major new developments that have been begun since the line began to be
>constructed (at the Taman Jaya station and the huge KL Sentral development)
>but I don't know their ownership situation. 

I'm not familiar with Taman Jaya - but the KLCC Station site is a JV
development between PUTRA and another party, and I believe the working site
to the west of Jalan Sultan Ismail is also a building development. The
Masjid Jamek site has - or is intended to have) first floor retail
development also (I forget the neme of the development but have it on file
somewhere).


>A third system, the PRT monorail, the CBD phase of which is under
>construction, was going to be associated with a MAJOR real-estate
>development, namely the Linear City development which was to have straddled
>the Klang River over several kilometres. Maybe this is the example that you
>were referring to? I believe the same corporation was involved in both.
>However, I beleive that the Linear City project is either cancelled or
>postponed indefinitely. 

Yes to both those. And no land development on the PRT route which is
essentially totally along public highway.


>
>The Malaysian Railways (Keratapi Tanah Melayu - KTM) has operated electric
>commuter trains (suburban heavy rail) here since 1995 and does have
>extensive land holdings apparently. I don't know how many of the land
>holdings are at appropriate stations. The KL Sentral development must be
>directly helping KTM to some extent, since it is going up where their old
>marshalling yards and warehouses used to be. There is at least one other
>development taking place along this system (in southern Petaling Jaya) with
>a major shopping centre to be built over and around a new station. This one
>is certainly an example. 

Well KTM is now (did it actually go through?) owned by Renong and Bolton
Properties who intended to develop railway land - including the notorious
Kenny Hills site.


>
>A rail line to the new airport is under construction (express rail link
>ERL). I have not heard of any joint-development arrangements. The city
>terminus is at the huge KL Sentral development and one station will be in
>central Putrajaya (the new administrative centre for Malaysia) and there
>should be enormous development potential there. I have no knowledge if the
>company is actually involved in such joint developments however. There have
>been no explicit announcements on it as far as I know.

The YTL/Siemens JV is dealing solely with the rail link - but knowing YTL's
business acumen they will not miss the opportunities to capitalise on the
route development.


You missed the KL elevated pedestrian network - but that's another story :)
------------
Tony Barry  FICE
EValue Engineering Sdn Bhd
www.evalueco.com

Kuala Lumpur



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