Syed Mokhtar eyes RM5 billion KGNS land
(TMI) — Logistics tycoon Tan Sri Syed Mokhtar al-Bukhary has moved to take over 330 acres of land currently leased to Kelab Golf Negara Subang (KGNS), The Edge newspaper reported today, in a development that could raise suspicions about the federal government’s ongoing legal action against the golf club.
The Malaysian Insider reported last November that the federal government has initiated legal action to gain control from KGNS of some 330 acres of prime land worth an estimated RM5 billion.
Today, The Edge reported that Perspective Land, a private investment vehicle controlled by Syed Mokhtar and Sunway City, an arm of property giants Sunway, had submitted a development plan late last year for the land.
The bid comes as the club, which says ex-statesmen, senior generals and former civil servants make up a third of its membership, is fighting a lawsuit by Putrajaya to force KGNS to pay market rates for the asset that sits in the middle of established and rapidly developing Subang Jaya, Ara Damansara, Kelana Jaya and Bandar Sunway.
“We always look at the opportunities that are available to us. If it turns out to be something interesting, we may put in a proposal though most of this is done on a trial-and-error basis,” the financial daily quoted Ho Hong Sang, managing director of Sunway’s property division, as saying.
It also cited other Sunway officials as saying the plan is at an “exploratory stage.”
The issue of ownership of the land has been a source of friction for half a century as the club was set up in the 1960s without clearly defining the ownership of the acreage which is now home to two 18-hole golf courses.
The government and KGNS entered into a 99-year lease in 1971 but several government agencies began demanding a greater say over the management of the club.
The club eventually lodged a private caveat to defend itself in 2004 but a task force chaired by club president Tan Sri Megat Najmuddin Khas on June 17 decided against extending it just six days before it expired.
Minutes of the meeting sighted by The Malaysian Insider showed that the decision was made to preserve Megat Najmuddin’s ties with the Najib administration.
But the official land owner, the Federal Land Commissioner, then went to court in the middle of last year to compel KGNS to buy the land at current market prices.
KGNS members then voted in a November 20 extraordinary general meeting to defend itself against the lawsuit and also that a new task force be established to help negotiate a settlement.
Megat Najmuddin also told The Edge he has yet to be informed of the proposed privatisation but cautioned that it would be “political suicide” for the government.
“It will antagonise a whole generation of people. These people are not just anyone,” he was quoted as saying.
He also dismissed any concerns over conflict of interest as he said he owns no stock in Tradewinds Corp, which is 47 per cent owned by Perspective Lane, despite being chairman and independent non-executive director of the property developer.
The legal suit has also given rise to speculation that the land has been earmarked by the government for sale to developers to build high-end properties.
The move also reinforces perception that Putrajaya is strapped for cash and comes after Second Finance Minister Datuk Seri Husni Hanadzlah said last year it was looking at monetising assets including land to help fund expenditure amid controversy over “land grabs” to build the new Klang Valley Mass Rapid Transit system.
Numerous politically-connected businessmen live in beautiful mansions opposite the iconic institution and could be opposed to any move to intensify development in the area.
