TRANSIT-oriented development (TOD) is expected to be the new revenue generator for Prasarana Malaysia Bhd, chairman Datuk Seri Tajuddin Abdul Rahman (picture) said.
Following a site visit to Prasarana’s TOD project Ara Sentral in Ara Damansara, Selangor, Tajuddin said the group needs to diversify to gain revenue to keep on operating.
“Each of these TOD development projects is expected to generate an estimated gross development value (GDV) of between RM600 million and up to RM3.5 billion, that is our forecast.
“Besides that, Prasarana will enjoy property appreciation and regular income over time,” he said in a press conference in Kuala Lumpur (KL) yesterday.
Prasarana currently has eight TOD projects including Ara Sentral which is directly linked to the Ara Damansara LRT Station with an estimated GDV of RM1.1 billion.
Perla, located within Ara Sentral, is a mixed development comprising commercial, office, hotel and serviced apartments, slated to be completed in the first quarter of 2022. This is the first TOD project in Selangor between Prasarana and ADS Projek Sdn Bhd, a subsidiary of TRC Synergy Bhd.
Seven other projects in Selangor are in IOI Puchong, Kelana Jaya, Glenmarie, and Taman Tun Dr Ismail, Dang Wangi, Awan Besar and Brickfields (adjacent to the Tun Sambanthan monorail station) in KL.
Additionally, there is also the redevelopment of two former bus depots in Old Klang Road and Melawati in Selangor into a mixed development with a GDV worth RM410.68 million and RM653.88 million respectively.
TOD is defined as a high-density mixed-use development built near a transit station preferably within a 400m radius, a concept which is popular in Japan and Hong Kong.
As Prasarana relies heavily on revenue from fares contributed by rail and bus operations, Tajuddin said TOD is one of the new strategies used by the group to increase its non-fare revenue segment, as well as through advertising and other commercial activities.
Venturing into TOD will enable Prasarana to optimise its land usage and convert underutilised station land into a mixed-use development.
It also aims to encourage the public to use its transit system and indirectly reduce private vehicle usage on the road and to create recurring income through property ownership.
Tajuddin said the service for the people will not stop because there will always be a need for public transportation.
“We are hopeful post-Covid-19, things will get back to normal and then we will proceed with what we have planned before.
“Although we are facing economic challenges, Covid-19 and global economic recession, we are confident there will be a recovery,” he added.
Sumber: The Malaysian Reserve