PLAZA Rakyat lot buyers who did not accept compensation for the abandoned project in Kuala Lumpur still hope to get their units now that a new developer is set to resume construction that stalled more than 20 years ago.

They hope that the Federal Territories Ministry will facilitate a meeting between them and the new developer, said Plaza Rakyat pro tem committee spokesman Ng Pang Wah.

There are more than 60 buyers still waiting for their units or fair compensation from the developer, Ng told The Malaysian Insight.

“We still want to talk to the new developer. If they can give us a unit then we will be happy.

“We have paid for the units and our main aim was to always own lots there.”

The remaining lot owners are those who didn’t accept the compensation offered by Kuala Lumpur City Hall (DBKL).

Bukit Bintang MP Fong Kui Lun recently told The Malaysian Insight that the majority or around 200 of Plaza Rakyat’s long-suffering buyers have been repaid by DBKL. 

Collectively, they had invested close to RM30 million when the project was launched more than two decades ago.

It was reported in May that Guangzhou Xu Zhuo Enterprise Management Co Ltd proposed to buy a 43% stake in project developer Profit Consortium Sdn Bhd.

The China-based firm was reportedly expected to pay off the outstanding debt due to DBKL and recommence work on the project.

“The Plaza Rakyat project is being taken over by a new consortium, which finalised its takeover at the end of March.

“It has contacted DBKL to pay the outstanding amount (by Profit Consortium) and is expected to start work soon,” Federal Territories Minister Khalid Abdul Samad said.

Ng said the remaining lot owners would seek compensation only if the new developer fails to give them units.

“We hope to finally resolve this issue. We have been waiting for many years and we hope for fair compensation.

“This has been an eyesore for many years. It should be developed quickly.”

Plaza Rakyat is a mixed development comprising a 79-storey office tower, 46-storey condominium block, 24-storey hotel and seven-storey shopping centre.

The project in Jalan Pudu was abandoned in 1998, following the 1997 Asian financial crisis.

In 2015, Profit Consortium signed a sales and purchase agreement with DBKL to take over the 6.2ha site for RM740 million.

The group finalised the project’s development plan in 2017 and started repairs. However, due to difficulties with working capital, the repairs were halted.

The history of Plaza Rakyat goes back to 1993, when Sarawak tycoon Ting Pek Khiing’s Plaza Rakyat Sdn Bhd, a subsidiary of Wembley Industries Holdings Bhd, undertook development of the land.

DBKL took vacant possession of the abandoned site in 2014 after repaying a RM150 million loan taken out by Plaza Rakyat Sdn Bhd. – July 12, 2019.