RM3.6b The Paragon@KL Northgate to be reviewed again

It’s back to the drawing board for KL Northgate Sdn Bhd’s RM3.6 billion project in Gombak—The Paragon@KL Northgate—amid oversupply in the property market, as reported by The Sun Daily.

Anzo Holdings Bhd, which was supposed to bid for the project together with MCC Overseas (M) Sdn Bhd, told Bursa Malaysia that KL Northgate had decided to review the whole development concept and components in view of the current real estate glut.

“Anzo Construction Sdn Bhd (ACSB) was further informed that the whole process will take at least another six to nine months before the bidding and tendering exercise can be carried out.”

Anzo said it is only able to submit the tender documents upon KL Northgate finalising the contract document and pricing for the project, estimated by October 2018, as the project’s progress is solely dependent on KL Northgate.

The 18-acre project was initially designed to include a shopping mall, shop offices, hotels, residences and serviced suites, as well as the redevelopment of the long-abandoned Selayang Springs Condominium project.

KL Northgate later revised the project design to focus on residential development instead of a shopping mall due to current market conditions.

In April 2017, KL Northgate issued a letter of intent inviting Anzo’s unit ACSB, formerly known as Harvest Court Construction Sdn Bhd, to jointly undertake the construction of the project with MCC Overseas for up to RM1.21 billion. The contract document was supposed to be finalised by December 2017.

Datuk Eddie Chai Woon Chet is the common shareholder of Anzo and KL Northgate. MCC Overseas is a subsidiary of China Metallurgical Group Corp. — Construction+ Online


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