UDA Holdings Bhd plans to further negotiate with the Government to provide funding for the build-and-sell housing initiative.

Chairman Datuk Nur Jazlan Mohamed argued that if the company was to develop property based on the build-and-sell concept without any aid from the Government, it would tremendously hurt its cashflow.

“Discussions are ongoing but we must find a middle ground where we will not be adversely impacted by our participation in this project.

“The issue here is risk and rewards. For many developers here, it is not a popular concept although it is a norm in countries like Australia and Canada,” he told reporters after a media briefing on UDA’s initiative in the commercial development of Seetee Aisah tanah wakaf (endowment land) – the first in the country.

UDA was among the four government-linked companies that had agreed to adopt the build-and-sell housing concept as part of efforts to counter the problem of abandoned housing projects.

On the update on the redevelopment of Pudu Jail, Nur Jazlan said UDA viewed that the Finance Ministry’s (MOF) plan was not attractive in terms of returns according to preliminary reports by its special committee.

“Our committee will finish the report on the redevelopment of the area in a few months’ time that would suggest a lower risk and better returns.

“We will present the report to our board for approval which then will be handed over to the MOF” he said.

Nur Jazlan said the redevelopment of the Pudu Jail seemed attractive a few years go but now with the Tun Razak Exchange project in the picture, it would pose stiff competition.

UDA is wholly-owned by the MOF.

Source: The Star