KUALA LUMPUR, Jan 20 — The development of the Federal Land Development Authority (Felda) and Encorp Bhd’s RM3.2 billion integrated township project in Melaka will be carried out in three phases and completed in 14 years.
Felda and Encorp Chairman Tan Sri Mohd Isa Abdul Samad said the project’s initial gross development value was RM4.9 billion but it depreciated given the weak property market.
“Each phase of the project will take up to three years to complete given the lacklustre property market, however, we believe this is a normal cycle,” he told a press conference after witnessing the signing of a memorandum of agreement between Felda Director-General Datuk Hanapi Suhada and Encorp Executive Committee Chairman Datuk Zakaria Nordin.
The agreement will facilitate the nomination of Encorp Bukit Katil Sdn Bhd as the master developer to develop the township comprising residential and commercial projects on a leasehold land measuring 259.4 hectares.
Mohd Isa said the state government was supportive of the project which would begin construction in the first quarter of next year.
“The land value of the project is RM12.58 per sq ft and we are looking at a minimum return on investments of 18%,” he said.
He also indicated Felda’s interest in the property business and that it had identified several areas to be developed into residential properties.