A Unique Investment Opportunity to Build Freehold Landmark Development in the City Centre
Leading global commercial real estate services firm, Colliers International Group Inc. (NASDAQ: CIGI; TSX: CIG) is putting up for sale – by private treaty – five adjoining sites located at Jalan Ampang , Kuala Lumpur (KL), Malaysia.
Jalan Ampang is one of the main roads in the Kuala Lumpur City Centre (KLCC) area, which connects to the Petronas Twin Towers. It is supported by a network of public transportation – including LRT trains, buses and taxis. The stretch comprises office buildings, hotels, luxurious condominiums, embassies and popular malls.
The subject property has a combined site area of approximately 113,911 sq ft that forms a rectangular-shaped plot, with a road frontage of 90 m facing Jalan Ampang. There are currently eight two-storey buildings that are vacant on site.
Based on the Development Order granted in December 2013, the subject property had been approved for the development of two mixed commercial 60-storey blocks – one block comprising solely offices, while the other block comprising a combination of offices, service apartments and hotel.
Approval from the relevant authority had also been previously obtained to increase the plot ratio from 1:10.0 to 1:12.0, which potentially increases the total gross floor area to approximately 1,367,613 sq ft.
New development approval will have to be obtained by the new owners.
Mr Terence Tang (邓文杰), Managing Director, Capital Markets and Investment Services, says, “The sale of the subject property presents a unique opportunity for developers or real estate funds with an eye for greenfield development, to acquire a sizeable freehold plot to build an iconic landmark development right in the heart of KLCC. The ringgit’s softening in the last year provides an attractive entry point for investment. Depending on the buyer’s intention, the development can be held for future capital gain or divested via strata unit sales to retail investors.”
He continues, “The area has been witnessing notable investment transactions in the last four years with the land sales along Jalan Ampang – including that from the British High Commission to SP Setia, Executors of Leong Mai Leng estate to Oxley Rising Sdn Bhd, well as the French Embassy to PutraJaya Ventures Sdn Bhd. The area should see urban renewal activities, which will enhance future values in the vicinity.”