KUALA LUMPUR: Eco World Development Group Bhd is expected to start construction of the RM8.7bil Bukit Bintang City Centre (BBCC) project by the first quarter of next year. Chief executive officer Datuk Chang Khim Wah said upon getting the development approval from the Kuala Lumpur City Hall, the company would prepare the pre-marketing for the launch of the project by year-end.

"We remain confident about achieving our RM3bil sales target this year, due to the number of projects that we are doing in the township currently. We have the flexibility to have a broader marketing spectrum of products.

"Whatever challenges thrown at us this year or next year, we are quite confident that the sales target would be met," Chang told reporters after the company's EGM here yesterday.

The former Pudu Jail site has been approved for a mixed residential and commercial development comprising a retail mall, an entertainment block, strata offices, an office tower, two hotels and serviced residences and apartments.

The development period is expected to be about eight to 10 years.

During the EGM, shareholders approved the company's proposal to subscribe for two million new ordinary shares in BBCC Development Sdn Bhd, representing a 40% stake in the enlarged issued and paid-up share capital of BBCC Development, according to Bernama.

BBCC Development is a special-purpose vehicle jointly set up by Eco World, UDA Holdings Bhd and the Employees Provident Fund (EPF) for the purpose of developing the BBCC project.

Eco World had on Feb 4, 2015, entered into a shareholders' agreement with UDA Holdings and the EPF to jointly invest and fund BBCC Development as the vehicle to undertake the development of the project.

The redevelopment of Pudu Jail spans over 21 acres and is among the last tracts of land left in the city centre.

The area is slated to house some of the mega-development projects in Kuala Lumpur. Permodalan Nasional Bhd is building a 100-storey tower called Menara Warisan in an area close to the Pudu Jail site. Nearby the Pudu Jail, the 72-acre Tun Razak Exchange is being developed.

UDA Holdings has been trying to develop the site for more than 10 years now. Previously, when the urban development authority was under Datuk Nur Jazlan Mohamed, he had proposed a redevelopment tying up with developers from China. However, this was opposed by certain quarters, especially bumiputra groups.

The latest joint venture between Eco World, the EPF and UDA Holdings was mooted last year when Datuk Johari Abdul Ghani, the deputy Finance Minister now, was the chairman of UDA Holdings.