Urban Renewal: KL Eco City

Contents 1.0

Introduction ..................................................................................................................... 2

2.0

Literature Review on Urban Renewal .............................................................................. 5

2.1

Main approaches to urban renewal .............................................................................. 7

2.2

Issues in urban renewal ............................................................................................... 8

3.0

Case study - KL Eco City (KLEC) ...................................................................................11

3.1

Background.................................................................................................................11

3.1.1

Location ...............................................................................................................11

3.1.2

Accessibility and public transportation .................................................................12

3.1.3

Site ......................................................................................................................13

3.1.4

History .................................................................................................................14

3.1.5

Revitalization Strategy .........................................................................................16

3.2

Proposed and Current Project .....................................................................................18

3.3

Issues on the development .........................................................................................22

3.4

Preliminary Evaluation of the Project ..........................................................................23

4.0

Conclusion .....................................................................................................................25

5.0

References .....................................................................................................................26

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1.0

Introduction Urbanization is a process of development that is not only occurring in Malaysia,

but has been widely adopted throughout the world. General knew, the supply of land for development is very much limited. Arguably, no other large area can be developed due to the growing population today. In line with this, Malaysia has started to identify areas that can be redeveloped and able to give positive impact on certain areas. A study was carried out in 2003 and found the population increased to 62.5% as a result of the movement of population growth in urban areas and the expansion of the boundaries of the city administration (Ragayah, 2008). The origin of modern incarnation was started in the late 19th century in developed nations and experienced an intense phase in the late 1940s - under the heading of reconstruction. This process has a major impact on many urban landscapes, and has played an important role in the history and demographic of cities around the world.With the rapid growth of urban areas, more lands that were once dedicated for agricultural purposes hasbeen affected when these areas were no longer used for agriculture. In Klang Valley for example, vast areas of land estates have been converted into housing estates and new towns to address development pressures. Given the example of Sime Darby estate land in Sungai Buloh, the land that previously oil palm land has been developed into residential area where the price of two-storey terrace houses had reached RM300,000 per unit. Somewhere in 2002, the suburban areas were developed to be used as preferred alternative residential due to home prices in major cities soar dramatically. At the same time, the commercial and industrial parks of the existing area in the inner city has become old and gradually less utilized while some are left abandoned.

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Urban renewal is one of the government moves in reconstruction efforts to temperate land for high density urban land use. The results of these reforms have been encouraging, however, it also experienced times of failure. Many urban renewal involving the removal and relocation of residential and commercial areas, where old structures demolished disfiguring development. The process of urban renewal is not just concentrated in the large cities, but it has been extended to the suburbs as well. Any less developed or prone to decay areas will be addressed. Urban renewal is the driving force of the economic structure of some areas where reforms are carried out with the aim to promote the area. But now, urban renewal is not only considering relocation. Many factors are appropriately addressed such as infrastructure, public facilities and commercial growth improved to make it a complete renewal area. The implementation of urban renewal must take into account several important factors such as the following: i.

Reformation Strategy: New urban renewal refers to the restructuring of the central business district (CBD) area expansion and growth strategy

ii.

Administrative: The development of urban renewal is a complex involving global inclusion, federal, and local factors.Yet, national authorities have a greater role in the restructuring of the old city.

iii.

Community prosperity: The reason why new urban renewal implemented is that it will not monopolize by one race or group. The renewal often refers to ease the interaction between race and class.

iv.

Poverty: New urban renewal is expected to be able to dispose of outdated façade and the 'nucleus point' can eradicate poverty. When the area being developed, it will create a new phase of life where job opportunities will exist. This will provide an opportunity for a better life.

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In the case of Kuala Lumpur, the city started sometime in the late 18th century with a small mining area. Later, Kuala Lumpur became home to the world's largest reserves of tin. As time flies, the city of 'small' become 'home' to a large number of people resulting inadequate of land to offer for the housing development in the urban area. What options do we have? How to provide a ‘home’ to these people? How do they live if it is too congested? Reported in the news in 2009, Dewan Bandaraya Kuala Lumpur (DBKL) has identified 35 potential site which encompassing 547.92 hectares of land for urban renewal and this include Kampung Haji Abdullah Hukum which is now experiencing a construction of renewal. Redevelopment is not an easy task, but Dewan Bandaraya Kuala Lumpur (DBKL) believes that the strategy will succeed and the government will keep do the expansion for the public goods and need.

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2.0

Literature Review on Urban Renewal According to UN Habitat (2000), more than 38% of people are living in urban areas

by 1995 and projected to increase to 57% in 2020. In view to that, developing countries are facing rapid urbanization and set a huge pressure to the city structure. With this kind of situation, urban renewal will be one of the best options to correct the structure in the cities, driving the cities to function as they were designed. Urban renewal generally used as a process to transform urban environment to make urban centre attractive for residents and businesses (Collins & Shester, 2010). Treister (1987) articulates that transformation always in action to rejuvenate city constantly in a natural way. This statement is supporting Miller (1959) who sees urban renewal as a result of urban structures revitalization,when cities are not functioning the way it was designed through several principles application. Historically, Hou in Conzen (1986) identified that urban renewal had started since the early settlement as the old cities keep undergo the metamorphosis as in have to face the continuous regeneration demand. Later in 19thand 20thcenturies only the awareness arose and coordinated efforts emerged in governmental sector and other private groups to eliminate urban decay (Holcomb & Beauregard, 1981). United States was among the first countries addressed the urban renewal program to offset the deteriorating neighborhood and city’s portion (Grebler, 1964). Urban Renewal in the United States In order to response to the environmental degradation due to urbanization and industrialization process, the effort started with American Park Movement and City Beautiful movement focus mainly on urban parks and monumental public buildings formation (Holcomb & Beauregard, 1981). Later, Nelson (1988) identified it has been continued with the clearance of slums and blighted areas and transformed those into apartments. However, after some time, urban renewal process being criticized and labelled as ‘bulldozer approach’ (Santiago, 1975) as it leads to displacement of 5

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minorities, the poor and small businesses to be replaced with luxury housing. Holcomb & Beauregard (1981) argues that in 1954 the program has become a profit making medium instead of slums improvement. This was done by clearing blighted area near to existing central business districts and replaced with high-class land use profile. But later, the program funds slowly re-shifted rehabilitation to recognize the cost of economic, human and social instead of demolition and construction. Urban Renewal in Europe The first involvement by state in Britain was to counter unsanitary conditions by clearing slums area in mid-19thcentury (Couch, 1990) and the most extensive renewal was in 1920s that involve war-damaged cities. Grebler (1964) revealed that the rehabilitation and conservation of historical towns has gained more attention after World War II. Same as United Stated, Europe has also started to shift the paradigm of urban renewal towards rehabilitation and area improvement instead of clearance in 1960s (Couch, 1990). Urban Renewal in Asia Given the example in Hong Kong and Singapore, they also evolved from clearance of slums area towards inner-city renewal and public housing redevelopment. In Hong Kong, it was initially dominated by private sector where the first large scale clearance of slum took place in 1954 (Castells et al. 1990). The affected people were resettled in public or temporary housing and compensation made to the small business owners.While in Singapore, the program started a bit late compared to Hong Kong that is in early 1960s. It involved the inner city redevelopment and large-scale slum systematic clearance. It has begun with the Urban Renewal Program for the Central China Town (Lim, 1983). In Singapore, Siew-Eng (1989) stated that the trauma of resettlement been reduced through the policy provision in which alternative accommodations

must

be

made

available

before

any

building

demolished.

Compensation and additional incentives also have been given to the business owner to re-open business in new housing area. 6

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2.1

Main approaches to urban renewal

Miller (1959) stated that three principles outlined in International Seminar on Urban Renewal 1958 were redevelopment, rehabilitation and conservation. Yet for neighborhood

area,

Colborn

(1963)

identified

the

possible

approaches

are‘redevelopment’ where the neighborhood to be newly rebuilt, ‘rehabilitation’ that involves preservation and upgrading structures, and ‘integration’ that combines both approaches. Some of the explanations are as follows: i.

Redevelopment It is the re-use of cleared land for new projects after the removal of existing buildings

where this approach is applicable to areas with badly deteriorated buildings, no preservation value or the arrangement of buildings are not providing satisfactory living (Miller, 1959). For developers, this approach can maximize their profits and for local government, it can maximize the use of land, introduce commercial activity which can increase tax revenue and later leads to services and infrastructures improvement and higher density (Zhu Zixuan, 1989). However this process will cost the environment and social aspect as mentioned by Frieden (1964), the clearance would affect the functional social system as it is however will have impact on the psychology of the affected people. The biggest concern is redevelopment in any ways would not be able to avoid slums from reappearing in the parts of city. Most developed countries have not using this method however developing countries still consider this approach is viable to modernize city areas. ii.

Rehabilitation Rehabilitation is the other side of redevelopment for it is usually twinned with

conservation or preservation. It is applicable to the area with structurally in fairly good condition but lack of maintenance (Miller, 1959) because it is principally to preserve, repair and restore the man-made environments. Zhu Zixuan (1989) supported this by pointed out that this process is taking the benefit of existing housing stock and 7

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transform those into acceptable standard with modern facilities. Undeniably, it recognizes the value of old neighborhood by preserving the uniqueness. But in the other hand, complexity and time-consuming are always associated with rehabilitation make it more difficult to implement compared to redevelopment. This is because this process will demand high degree of social responsibility and organization for housing reorganization process. Holcomb & Beauregard (1981) indicated that developers sometimes refused to proceed with this approach as it is a hindrance to a large scale redevelopment. iii.

Integration Integration consists of both combination; redevelopment and rehabilitation. It is the

stage where save the parts that realistically can be saved and reconstruct of those beyond possible of rehabilitation (Yu Qingkang, 1988). It is the most acceptable way in old neighborhoods regeneration for it allows project to be implemented flexibly while preserving traditional urban environment. This approach will later create a rich environment by integrating new buildings with the existing and allows a new form of architecture, enriching the old cities without diminishing the characteristics and identity. But still, it is seen as time-consuming process and less profitable in the eyes of developers and local authorities when it comes to mass housing development. 2.2 i.

Issues in urban renewal

Urban identity It is a big challenge to preserve the visible structure and identity of one city

throughout the process of renewal because Holcomb & Beauregard (1981) noted that urban renewal would not only modify the physical but also the way it is perceived and experienced, and also the emotional relationship between people and urban space. Mumford (1956), Lynch (1960) and Jacobs (1961) advised the most important elements in urban environment are diversity and continuity.

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Diversity must be encouraged through urban renewal so that people can develop their society and civilization. In addition, continuity with many distinctive parts interconnected also must be promoted. According to Lynch (1960), urban renewal must set maintaining the continuity of community and the history as the aim of renewal. Holcomb & Beauregard (1981) and Nozick (1992) both suggested the preservation of city’s identity to save it from “placelessness” of homogenous values and contemporary architecture. ii.

Environmental aspect The environmental preservation be it natural or man-made must be considered

throughout the process as alleged by Holcomb & Beauregard (1981) and Van der Ryn&Calthorpe (1986) that unique character of old structures and patterns of the city must be maintained for its vitality. Wang (1992) acknowledged the importance of historical preservation for future generations to know and uphold their cultural heritage amid modern cities’ life. For Van der Ryn&Calthorpe (1986), in the making of modern city, all past, present and future are equally important. iii.

Social aspect The well-being of individual and community in the aspect of physical and

psychological are essential whether the renewal is to place the affected population on the site or other part through relocation. The relocation area must be appropriate for the people where they can easily access to city centre and facilities and not in isolated environment as mentioned by Kazemian (1991). Holcomb & Beauregard (1981) believed that the renewal activities may lead to a loss contact of familiar environment with people who have developed strong emotional attachment with it. Jacobs (1961) referred the attachment as the security being part of home, familiar environment and a security from physical fear in literal form.

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iv.

Cultural aspect

The preservation of urban unique culture also another issue in this process because of the disappearance of physical and social aspect in a place that been renewed. Culture is formed through its architecture, planning and urban design combining the community way of life (Van der Ryn, 1986). It is important to ensure urban culture is not demolished within the process but promoted because it defines what is unique about the people and the place simultaneously creating the identity of that place (Nozick, 1992).

From the above, a brief approaches and issues in urban renewal have been shared to show how it evolves and how essential it is for the people and local government in order to ensure the cities function correctly. It is understood that cities have been the centre of various civilizations and activities for centuries (Spates &Macionis, 1987) and the number of population keep increasing year by year. It is a set of lifestyle where each element is interrelated and cannot be viewed in isolation (Sepe, 2006). Having these characters, cities are ineluctable to experience the process of urban decay such as buildings deterioration, poor maintenance and increase in property crime. Some responsible factors for such situation can be rapid urbanization, decay in urban infrastructure and negligence of housing property (World Bank, 2005). Ergo, urban renewal seems to be appropriate method to redo the blighted areas in the cities simultaneously can be a strategy to achieve sustainable development agenda and to reduce or eliminate decaying areas within cities.

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3.0

Case study - KL Eco City (KLEC) 3.1

Background

3.1.1 Location KL Eco City (KLEC) is the latest and greatest development in Kuala Lumpur. It is located at the site formerly known as Kampung Haji Abdullah Hukum. Kampung Haji Abdullah Hukum was situated further south along Jalan Bangsar which is approximately 2.5 kilometer due southwest from Kuala Lumpur City Center

and about 7.5 kilometer due north east of Petaling Jaya.

Surrounding development of KL Eco City include Bangsar, Mid Valley Megamall, The Gardens and Bangsar South (see Photo 1). Photo 1: Location of KLEC

(Source: www.klecocity.com.my)

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3.1.2 Accessibility and public transportation KL Eco City is located in a strategic location that is between Bangsar and Mid Valley City. The site is easily accessible from Kuala Lumpur City Centre through Jalan Damansara, Jalan Travers and finally onto Jalan Bangsar where the site is located. Besides, the site also is accessible from Petaling Jaya through the Federal Highway, Jalan Pantai Baru and finally onto Jalan Bangsar (see Photo 2). In addition, KL Eco city is just a stone’s throw away distance from Mid Valley City and is approximately 15 minutes away on a brisk walk speed. The site is accessible by public transportation such as LRT, KTM, bus and taxis. The site is strategic located as there is LRT station nearby known as the Abdullah Hukum station and further down the road there is another KTM station known as Angkasapuri station. In addition, KL Eco City is situated near to KL Sentral that serves as the major transportation hub catering both intercity and international travelers. Therefore it is more convenient and easy to reach KL Sentral from the site.

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Photo 2: Map of KLEC

(Source: www.klecocity.com.my)

3.1.3 Site The development site of KL Eco City is approximately 24.88 acres of land in Kampung Haji Abdullah Hukum and it is a leasehold property with a 99-year lease term expiring on 5thDecember 2109. The site is irregular in shape and has frontage towards Jalan Bangsar and Federal Highway. The ownership of the development land are made up between SP Setia Bhd Group (Private Lands) and the Dewan Bandaraya Kuala Lumpur (DBKL Lands). The detail of the ownership of land is shown in Photo 3.

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Photo 3: Details of private lands and DBKL lands

DBKL Lands

Private Lands

3.1.4 History Photo 4: Kampung Haji Abdullah Hukum

Kampung Haji Abdullah Hukum was an early Malay settlement in Kuala Lumpur with a 200 years old history. The village was named after Haji Abdullah Hukum from Indonesia who moved to Malaya. His real name was Muhammad Rukun. Abdullah Hukum was a title granted by Sultan of Selangor and referred to 14

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someone who was given the power to punish those who committed crime because there were no policemen or judges back then. According to Sager Ahmad from the Malaya Historical Group, Haji Abdullah Hukum, who played a pivotal role in the Kuala Lumpur's economic growth in 1850s had opened Kampung Haji Abdullah Hukum inhabited by about 1,000 people and made up mostly by Malays as well as Chinese and Indians. The Prime Minister Tun Razak in 1960s has encouraged the rural Malays to migrate and work in the big cities, especially in Kuala Lumpur. This had influenced the rural people to live in slum areas scattered at the edge of Kuala Lumpur downtown because they could not afford to buy a house. From time to time as a result of the rapid development of Kuala Lumpur, slum areas had finally located in the middle area of 'urban' municipalities and it happens in Kampung Haji Abdullah Hukum and its surrounding. The rapid growth in the population size, the industrialization and urbanization processes have led to the increasing housing and other development in forested area and agricultural lands (Jamduddin& Sham, 1982). In 21st February 1984, New Straits Times reported that DBKL had planned to convert Kampung Haji Abdullah Hukum, a flood prone squatter area into a minitown costing RM427 million butbeing protested strongly by 3,500 residents, 90% of whom are Bumiputera and most of them are low-income earners. They wanted the Government to review the project and instead building something compatible to their income level. Later, DBKL had planned to develop a comprehensive six years plan for the 12.8 hectares squatter area. It envisaged a self-contained town with 10 high rise medium and low cost flats, a 20,000 spectator stadium, 64 shophouses and four office blocks but the plan has failed to progress. The rapid development in the past 20 years has resulted in the high spread of squatter in Kampung Haji Abdullah Hukum. It is overwhelming and this causes basic facilities and infrastructure insufficiency to support the number of 15

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squatters. Living in slums is very unhealthy because people neglect the cleanliness and their drains are blocked, toilets are sub-standards and their houses are fire hazards. Today, Kampung Haji Abdullah Hukum exist as an urban village lying approximately two kilometers south from the city centre on the opposite side of a river from the signature Mid-Valley Shopping Megamall (Md Nasir Daud, et al.). Due to rapid development in Kuala Lumpur, the village has now located in the hot spot to be redeveloped to complement its surrounding development. 3.1.5 Revitalization Strategy In Kuala Lumpur Structure Plan 2020, Kuala Lumpur has set a goal to be A World-Class City as an international commercial and financial centre by 2020 (City Hall of Kuala Lumpur, 2004). There are still 570.63 hectare of land in Kuala Lumpur is being use as squatters in 2000 (City Hall of Kuala Lumpur, 2004). The squatter’s population has reduced drastically due to action taken by the government agencies to build more low cost housing through privatization and redevelopment program. However, there still some squatters whose presence in the City are marring the image of the city and causing river pollution as there are located close or along strategic routes or beside river. In additional to that, this area are exposed to high fire risks, lack of hygiene and bad environmental condition. DBKL has planned and implemented various program eliminated all the squatter settlement in the City by providing more housing for the resettlement of squatter that shall be in place before 2005.

The DBKL has planned to develop the whole area with a mixed development. It had entered into joint venture with SP Setia Berhad to develop and eliminate the squatter’s settlement in the area. SP Setia Berhad with the help of DBKL, have managed to resettle the 600 squatter families previously residing in Kampung Haji Abdullah Hukum. The problem solved by building new apartment for the relocation of the squatter families. Apart from that, SP Setia 16

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Berhad has also entered into a memorandum of understanding (MoU) with Datuk Bandar Kuala Lumpur to pay a compensation of RM3.6 million compensation to the 600 squatter family occupying state and private land in the area (The Edge, 2007).

Based on the literature previewed, KL Eco City development is using the combination method combining redevelopment and rehabilitation. Besides clearing the land occupied by squatters’ settlement, the developer will restore the first house built in the village in 1800s (see Photo 5). It will be located somewhere in the development area which initially proposed to be placed in front of the future mosque on the site. The house will be dismantled and reassembled.

The restoration is part of the privatization agreement between SP Setia Berhad and DBKL for future tourism purpose and also to honor the contribution of Haji Abdullah Hukum to the development of Kuala Lumpur.

In this joint venture project, DBKL will be SP Setia's partner on a profitsharing basis, taking 20 per cent of the project's net profits. DBKL being the land owner will be offered a 38-storey office tower with NLA of 400,000 sq ft.

Photo 5: The first house built in Kampung Haji Abdullah Hukum

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3.2

Proposed and Current Project

KL Eco City is a world-class city-within-a-city that exudes extraordinary architectural boldness. This new mixed-use landmark development sits on 24.88 acres of prime land and is the first integrated green luxury development anchored by prime commercial offices, high-end retail outlets, world-class serviced apartments and luxury residential towers (see Photo 6). KL Eco City has been designed by world-renowned Jerde Partnership International and boasting first-class infrastructure, KL Eco City is conceived to support and meet every residential, leisure and business need at the highest levels. Photo 6: KL Eco City proposed development rendering

KL Eco City is a joint venture development SP Setia Berhad Group and Dewan Bandaraya Kuala Lumpur (DBKL). SP Setia Berhad Group was incorporated on 8 August 1974 as a construction company and converted to Public Company on 1992. SP Setia first announced its intention to develop the land almost a decade ago, but was reported to have faced squatters problems and has now been settled. KamarulAzhar (2011) from The Edge newspaper reported that SP Setia Berhad had signed a RM460million syndicated Islamic financing with three Islamic financial institutions - HSBC Amanah Malaysia Bhd; Hong Leong Islamic Bank Bhd and Bank Muamalat Malaysia Berhad in conjunction with the official launch of its RM6billion KL Eco City project. According to Tan Sri Liew Kee Sin, president and CEO of SP Setia, 18

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the RM460million syndicated loan will be utilized to provide infrastructure such as ramps and bridges to ensure a smooth flow of traffic in and around the development. SP Setia Berhad will invest more than RM150million to link the project to all major highways surrounding the area. Apart RM460million financing it secured from Islamic Banks, the project will fully funded by internally generated funds and also through the group’s recurring income. After the development fully completed, the 24.88 acres development will consist approximately 30,000 people including residents and office workers. KL Eco City will transform the former Kampung Haji Abdullah Hukum into an inner city haven. This development aims to be the country’s first integrated green development with accreditation from both Malaysian Green Building Index (gold standard) and US-based Leadership in Energy and Environmental Design. With an estimated Gross Development Value (GDV) of RM6.5billion, the development is comprised of residential towers, office towers, service apartment tower, boutique offices, retail podium, strata offices and also including mosque and multi storey car park. This three phase’s development is expected to be completed over the 10 years. SP Setia will develop offices, commercial and retail space in the first phase; service apartments and residential towers in the second phase; and signature offices in the third phase For the residential development, it comprises of 3 residential towers known as Vogue Suites 1, Vogue Suites 2 and Vogue Suites 3. The Vogue Suites 1 is a 60-storey tower comprising 708 residential suite that divided into two blocks that are Block A& Block B with 364 units & 344 units respectively. There are five different types of units with different built-up which are type A, B & C with built up from 657 sqft to 1,119 sq ft and type D & E ranging from 1,647 sq ft to 3,993 sq ft. The numbers of rooms ranging from 1 bedroom to 2 bedrooms and loft are depending on the types of units. The unit comes with a minimum one car park bay per unit and the tower come with luxurious lifestyle facilities that spanned over four levels with a total amenity space of 90,000 sq ft. 19

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The Vogue Suites 1 is expected the be completed in January 2017 while the Vogue Suite 2 & 3 are yet to be launch by the developer. There are three type of office are going to be built by the developer in KL Eco City that are 3 blocks of office tower, 3 clusters of boutique offices with 12 quadrant blocks in total and a block of strata office suite. The 3 block of office tower will be known as Corporate office tower, Setia tower and DBKL tower. The developer is planning to keep the Setia tower for investment purpose while the Corporate tower will be sold en bloc. The DBKL tower will be occupied by DBKL itself. The developer also promised that these 3 blocks of corporate tower will provides world class office spaces for business to leverage on the strategic location along with the excellent connectivity of KL Eco City. The boutique offices will be known as The Pillar 12 as it is consist of 12 exclusive tower blocks which organized in three clusters. The offices will be 17 to 19 storeys high and with a gross floor area of 55,000 and 68,000 sq ft. typical floor plate sizes of 4,381 sq ft and 4,489 sq ft. The Pillar 12 are mid size office block which cater of companies seeking to enhance their corporate identity. The final type office that will be built by the developer is the strata office tower which can be known as Signature Offices. The Signature office will be a 35 storey high tower and consist of 235 units with different sizes ranging from 1,035 sq ft to 1,459 sq ft. It is suitable smaller company as it offers a variety of office suites layout. Beside the residential and office tower, the developer plan to build a block of high-end service apartment with will be managed by an international branded operator. The developer also will build four storey retail podiums below the boutique offices and a new mosque with its own parking podium. The overview of the project is illustrated in Photo 7.

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The developer has also invested a huge amount in road and transport infrastructure. They will be built four new ramps to connect with the existing accesses such as the Federal Highway, New Pantai Expressway, JalanBangsar and JalanMaarof which cost more than RM 150 million. Currently, KL Eco City is accessible via the Abdullah Hukum LRT which next to the site and KTM at the Angkasapuri station. To provide more accessibility, the developer will build an integrated rail transportation hub which will bring the LRT, KTM and proposed Mass Rapid Transit (to be built jointly by Gamuda Bhd and MMC Corporation Bhd) under one roof and will be completed by 2015. In order the bring the three line together, the developer will built a new KTM station at a cost of RM25million along the existing KTM commuter line servicing the Port Klang and Sentul route. The new station will be built between the Angkasapuri and Kl Sentral stop and it will be named after the development. SP Setia Berhad will also construct a covered pedestrian bridge linking the development to The Gardens at Mid Valley City to enhance connectivity as portrayed in Photo 6. Photo 7: Conceptual plan of proposed pedestrian linking bridge

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3.3

Issues on the development

The main problem faced in the development is the resettlement of the Kampung Abdullah Hukum communities. As the villagers have been staying there for a few generations, they felt that the land belongs to them and they have the right on the ownership of the land. In addition to that, there are no people in the area have land titles to prove the ownership. Hence the DBKL has the right to vacate the squatter in the area. SP Setia had been working with DBKL to help in dealing with squatters and to resolve all matters related to land ownership and resettlement of squatters previously resident on the land located within the Kampung Haji Abdullah Hukum area. To overcome this matter, DBKL has come up with a plan that was to adopt a public housing project (PPR) model similar to the one used on Putra Ria Apartments for. Previously, this model was used to relocate the squatters on the site where Mid Valley is situated. However, the suggested plan was rejected by the communities. After further negotiation between the authority and the communities, DBKL decided to build a better dwellings compared to Putra Ria Apartments. In 2006, the Abdullah Hukum apartment was completed. The apartment consists of 15 floors with a total of 600 units and a block of multi-storey car park. The apartment was also completed with public amenities such as children playground, grocery shops, guard house and other services. The squatters were given notice under Urgent Situation Act, this notice is to inform them that there need to vacant the land to give way for site clearing. Normally, DBKL will relocate the squatters to PPR and the squatters have to pay monthly rental. In the case of Kampung Haji Abdullah Hukum, the squatters were given opportunity to purchase the house that was built by DBKL instead of renting. Since most of the affected are poor, DBKL has given offer for them to buy the apartment at a discounted price RM51,000. The original price of the apartment was at RM80,000. Besides giving discount price, DBKL also give allowance worth RM6,000 per family as 22

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moving cost to their new home. By 2007, all the squatters have successfully been relocated to Abdullah Hukum apartment. It takes almost ten years for SP Setia Berhad to successfully acquire the area of Kampung Haji Abdullah Hukum. This is because there are many squatters on this land and it should be dealt with before the land can be acquired and submitted to the development

3.4

Preliminary Evaluation of the Project

The development is expected to be successful and attract more investors in the country or outside Malaysia as it is located in a prime area and developer has a strong brand name and a good record in property development in Malaysia. KL Eco City development is to complement the development in Mid Valley. This development also has the support from the government and Islamic banks in Malaysia and it will not fail because it has been well planned. In the development pipeline, it has been designed to overcome and ease the problem of traffic congestion surrounding its area by improving and increasing road infrastructure in and out from the project and build bridges and ramps. To further reduce traffic congestion, the existing Putra LRT (Abdullah Hukum Station), the new of KTM station and new MRT line (KL Eco City) will help to reduce the congestion here. According to Thean Lee Cheng from The Star newspaper on 29 November 2012 which reported that SP Setia Bhd has achieved total sales of RM2.5bil for its RM6bil Kuala Lumpur Eco City project which it launched a year ago with Kuala Lumpur's City Hall as joint venture partner. SP Setia president and chief executive officer Tan Sri Liew Kee Sin said the results should be good and that next year's forecasts should be even better despite the global uncertainties and the general perception that the property market was showing signs of slowing down.

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On the progress of its KL Eco City located strategically across from the MidValley Mega Mall, the sales have been good, with 90% of its Vogue Suites One comprising 708 units sold since its launch a year ago. Eight out of 12 boutique office towers, which offer a floor space of between 55,000 and 68,000 sq ft per block and 100% of its strata office block have also been sold. The company will retain a retail space of about 300,000 sq ft, a residence and hotel block and a 40-storey office tower with net lettable area (NLA) of about 750,000 sq ft for recurring income. KL Eco City will have total net lettable/sellable space of 5.7 million sq ft when completed. Beside the success of the KL Eco City Development itself, the development also has helped the government to eradicate the squatters’ problem in this area. The squatters eradication has reduce the eyesore of the city and it has also reduce the social problems arise from the area.

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4.0

Conclusion Effects of urban regeneration and renewal can be seen as a turning point for an

area. In the past, before urban renewal, the condition in Kampung Haji Abdullah Hukum is very compact and irregular with all development mixed at one place. Eventhough it is near to the largest shopping mall in Asia, Mid Valley, Kampung Abdullah Hukum and the surrounding were in painful scene and dilapidating. However, relocation of squatters was once an issue to the redevelopment process Prior to its strategic location, the rejuvenation and renewal of this area has a big potential for future commercial and residential market. Therefore, government found that the previous atmosphere was unable to stimulate the potential due to its current condition; numerous social problems and retarded area. To diminish the situation, KL Eco City identified as the remedy and its development taking into account the essential aspects needed. KL Eco City's strategic location is expected to be able to give a real revitalization, better life with a better infrastructure. For the proponents, the main argument is that urban regeneration would cut the tendency to urban sprawl, reduce pressure to extend development on green-field sites, prompt the rehabilitation of dilapidated properties and bring vacant properties back to the market. It would also remove an imperfect perception in the current land market that forcing people and businesses out of the inner city, sometimes unwillingly. Best of all, the communities in which these ’future brownfield sites’ reside are benefited by the obvious and instant community and environmental benefits associated with the cleanup of a polluted site. The concept of urban renewal has shown that the redevelopment will experience a 360-degree change in terms of development appearance, infrastructure, and facilities for the public which are all organized and in order.

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5.0

References

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Website: http://www.klecocity.com.my/ www.spsetia.com.my

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