KUALA LUMPUR, Nov 17 : UDA Holdings Bhd has made a final decision to proceed with the redevelopment of Kompleks Niaga Utama in Bangsar, despite protests by a few of its tenants.
The property is to be redeveloped to fully furnished service apartments with a gross development value of RM250 million.
Director Datuk Rizuan Ab Hamid said it has also further extended the deadline for the tenants to move out, from end of November, to now, end of December.
“Out of the total 68 commercial lots available, only 18 lots are occupied by 13 tenants,” he told reporters at a briefing today.
Rizuan said the company has been facing operational losses due to the low occupancy and rental rates. From 2011 until now, UDA recorded an operational loss of RM675,000.
Rental rates at the complex start at RM636 per month for the smallest lot, which measures about 250 sq ft, and the rental rate has not been increased since 2011.
Rizuan said UDA also rejected the tenants’ demand for RM100,000 compensation per lot, which he said is an unfair demand. However, it will provide compensation of up to RM50,000 per tenant to cover the tenants’ cost of storage and moving.