PERMIM LAND DEVELOPMENT UPDATE
CHRONOLOGY OF EVENTS
Land purchased in 1975, Lot PT 4065, 21797sq ft (2025SqM), located in SS6/1 in Kelana Jaya, next to Tabung Haji, ideally suited for HQ/main office functions
Many attempts since then to develop land with money collected from community's fund failed
Lack of commitment and unity are prime reasons but older generation leaders based on sentimental value held opinion doggedly that land must be developed with community's own money
New generation leaders realizing the community's lack of commitment to fund building, decided JV model appeared right choice, PERMIM spent considerable effort and money to mature one JV opportunity in 2000, but it was prevented from being pursued due to disagreement within community leaders
Land Steering Committee comprising community's prominent individuals including the PERMIM trustees was constituted in accordance general member's wish and under TOR endorsed by the Council. The main thrust of TOR was to evaluate the feasibility of undertaking land development through community fund. The Committee did not deliver the expectations as it met only once and it did not report its findings to the PERMIM Council
At 2003 PERMIM AGM, general members decided to dissolve Land Steering committee and revert the land matter responsibility to PERMIM Exco
It was also the sentiment of the members that the land issue should not be politicized to cause disunity of the community. The community must realize and accept that land development is a community project towards realization of twin objective of community's self respect and to make PERMIM economically independent to carry out its community related projects in education, welfare, small business upgrading, religion etc
While community as a whole is wealthy, it lacks the commitment and generosity to make the PERMIM building on its land a reality. At minimum require RM3-4M to put up a two story building comprising a multi-purpose hall and commercial space to generate income to sustain PERMIM socio/economic activities for the community
Based on inputs from the community, PERMIM Council judged it is unrealistic to expect the community to fund the land development even on a minimum scale of two story building. Further, PERMIM Council held view that it is foolhardy to let land idle while the community continues to suffer
At PERMIM Council meeting held on January 11, 2004 attended by some 30 council members, a brainstorming session was held and the following land development resolution was accepted
This PERMIN Council meeting held on January 11, 2004 accepted a proposal to develop PERMIM land through a commercial arrangement that will self finance the development. The conceptual plan includes building some 55 units of apartments for sale to PERMIM members and other interested Muslim brothers, one multi-purpose hall, six shop lots and eleven office lots for PERMIM use and two underground car park lots. The apartments will be sold at market based prices with the 55 prospective apartment owners financing the total construction cost of land development. Financial and legal details will have to be worked by a Land Development Sub-committee and are subject to approval of relevant state land authorities."
This resolution if successfully carried out would add value to PERMIM's idle land, generate income in the region of RM20,000/Month and help create some 55 apartment owners within our community"
Land Development Sub-Committee
PERMIM Exco meeting held on February 22, 2004 decided to appoint a Land Development Sub-Committee to study the financial and legal feasibility of the land development resolution adopted at January 11,2004 PERMIM Council. The Land Development Sub-Committee which will comprise the following brothers
Chairman, Vice President Jasha Khan
Secretary, Deputy President Abdul Kader Razak
Members, PERMIM exco(President,VPs,Treasurer,Gen.Secretary)
Advisors:Legal:Mohd Illias; Financing:Yusoff Hanipah; General
Matters:Dr Syed Ibrahim,Latif Ibrahim, Hishamuddin Ubaidullah
TOR of the Land Development Sub-Committee
Evaluate various self financing development alternatives and recommend the optimum viable alternative for PERMIM Council consideration
Evaluate various financial arrangements prospective apartment buyers would have to undertake in order to secure end financing for their purchase including making contacts with various financial institutions
Evaluate all land and legal aspects for securing strata title to secure financing apartment purchases and land conversion
Communicate with interested community leaders and PERMIM Trustees as plan evolves and matures
Develop Road Map for Implementation of success case results
Final Report to PERMIM Council by end 2004, if success case convene EGM to secure members support
RECENT DEVELOPMENTS
First sub committee meeting March 7, 2004 10AM, PERMIM HQ, Malayan Mansion, Jln Masjid India, reviewed detailed development plan and cost, need to raise some RM10Million to put up a 8 story building, this sum could be raised by outright sale of 55 apartment units with Trustees support, decided to refer to Trustees to solicit inputs before pursuing further to avoid the
2000 debacle.
Held first dialogue with one senior Trustee on March 27, 2004, Trustee accepted self financing model but held view that units must not be sold outright, need to explore with financial institutions to raise funds in exchange for long term lease of commercial space, offered to set up meeting with Bank Rakyat to explore financing.
Full Trustee meeting held on April 24, 2004.
Detailed Power Point presentation to Bank Rakyat (BR) senior management was prepared and presented on June 10, 2004 with presence of one senior Trustee, BR on June 25 wrote to advise rejecting out request for RM10M credit facility for the construction cost.
Soon after, that one senior Trustee resigned.
New Trustee was appointed at a Council meeting held on October 3, 2004 in Penang.
All land development activity suspended until the ratification of the new Trustee at Biannual Delegate Conference(BDC, AGM) and by Registrar of society (ROS) and change in land title to reflect the new Trustees.
FORWARD PLAN
Ratify new Trustees at 15th BDC to be held soon, advise ROS and the send out application to land office to incorporate the new trustee in land title
Concurrently seek land developers for possible JV
arrangement similar to one conceived in 2000.
|
