http://www.selangortimes.com/index.php?section=news&permalink=kelab-syabas-rental-rates-not-high
PETALING JAYA: The private operator of PJ Palms Sports Centre has refuted claims it charges high rental rates.
The new management of former Kelab Syabas said the rental is to recoup the RM4.2 million investment that was spent to refurbish the iconic club.
“We created a new look for the place to make it more family-oriented. We’ve placed new signages, installed new canopies and laid new flooring for our tenants,” said co-director David Solomon.
Solomon was clearing the air over allegations that his company, Sepang Mekar, is charging his tenants high rental since it took over PJ Palms early this year.
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| The swimming pool that was upgraded by Sepang Mekar at a cost of RM1.2 million. |
Solomon pointed out that he had offered to renegotiate a lower amount after hearing their complaints.
Two tenants, Waikiki Bar, a pub, and a barbershop called Barber Joe, have complained that the new management’s policy to charge RM4.50 per sq ft rental space has caused a threefold increase in rental.
Waikiki Bar has to pay over RM19,000 instead of the usual RM5,000, and Joe, which used to pay RM500 monthly rent, now has to pay RM1,800.
They brought up the matter to Bukit Gasing assemblyperson Edward Lee, who says rental at PJ Palms is too high.
Lee also claimed that MBPJ was leasing the 30-year-old club to Sepang Mekar at 11 sen per sq foot.
Solomon said he had offered to lower Barber Joe’s rental to RM1,500 a month.
“He asked for 24 hours to consider it. But he never responded to the offer after that,” said Solomon.
He said Waikiki currently occupies the largest floor space in PJ Palms, and after consideration, was given a discount over non-rent generating space.
Solomon said he did not charge rent for some 1,000 sq ft as a result.
“I measured the storage room area and other utility spaces and did not charge them for the area,” he said.
Solomon said he still wants to extend the olive branch to Waikiki and Barber Joe by offering instalment plans for them to pay their rental.
“We can still sit down and discuss terms,” he said.
Meanwhile, MBPJ councillor Richard Yeoh said Sepang Mekar is guaranteed a tenancy of 12 years made up of four three-year terms based on the council’s appraisal of Sepang Mekar’s performance.
Yeoh also said the rent was based on a set figure of RM15,000 per month and not at “11 sen per sq ft” as alleged.
He also said Sepang Mekar investors had to recoup the capital investment of RM4.2 million.
Yeoh explained that MBPJ would get to keep the upgraded facilities consisting of a swimming pool, squash courts, indoor cricket hall and other amenities at the end of the tenancy agreement period.
He said it is not feasible for the sub-tenants to pay the same rental as it had done in the past as rental prices in the city had increased.
He further said that the terms and conditions of the tenancy agreements had been recommended by the city council’s committee on privatisation and investment.
He pointed out that out of six bids for the open tender, Sepang Mekar was chosen as it offered to turn the club into a “family-friendly” club.
“The tender process was carried out in an open and transparent process. It was also vetted by councillors during the full board meetings here at MBPJ,” he said.
He said previous operators had failed to maintain the eight-lane Olympic-size swimming pool, and also turned the premises into a gambling den.
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