Dreams of City...
1) Government land measuring 3.674 acre - meant for public utilities and infrastructure - is sourced FOC (free of charge), from Developer A.
2) The same piece of land is alienated to SPV (Developer C) at below RM31.24 per sq ft circa January 2015, or land premium set at RM5m nett.
3) Never mind the market value circa January 2015 of RM400.00-RM500.00 per sq ft at the material time for that 3.674 acre of sea-fronting prime land. Let’s go for the kill.
4) Secure the agreement of the LandComm/PTG/State Government to buy the land at a premium of RM5 million (I.e. around RM31.24 per sq. ft). Paid swiftly before the 3-month grace period expired.
5) Once done, revalue the land at around RM1300.00 per sq ft (a whooping 41x) and use it as bank collateral, calculate some nice GDV of RM800 million for condo blocks built on it, and split between Developer B and Developer D, 40:60 equity. Caveat by Republic Bank Berhad, Bagan Ayam Brand, February 2015.
6) You may ask, what’s the role of Developer B? And the three bypass roads it’s tasked? OK, add an undersea tunnel if you want.
Answer: Who cares when the sugar daddy doesn’t even care? Go ask Doraemon!
In the end, it’s Pinangites of the Betelnut Republic who get short-changed.
BTW... The above is just a silly giggle during the Month of the Hungry Ghosts. Hear no evil, say no evil.
All characters are fictitious. Any resemblance is sheer coincidence.