BASF puts Shah Alam site up for sale

BASF (Malaysia) Sdn Bhd's industrial facility in Bukit Jelutong Business and Technology Centre in Shah Alam, Selangor is up for sale following a strategic evaluation of the 12-acre site. Industry players have estimated the sale may net BASF up to RM150 million. 

"As part of the company's overall real estate strategy, BASF has evaluated the strategic options of its Bukit Jelutong site and decided to offer it up for sale," The Edge quoted BASF managing director. 

Some 3.5 acres of the parcel is empty and available for future expansion. 

"The 12-acre industrial premises was acquired in 1997 and officially opened in 2000. Previously, the premises was also a production site for a polyurethane systems house, which ceased operations at the end of 2015," says Eng, who is also BASF head of the Malaysia-Singapore business area. 

BASF Petronas Chemicals Sdn Bhd (BPS) owns office space at the premises. BPS is a unit of the world's largest chemical producer BASF SE.

The publication reports that Eng says following the sale of the site, BASF and BPS will relocate to a strategic office location that will meet the needs of the businesses and their employees in the long term.

"Moving forward, BASF will continue to maintain and expand its manufacturing sites in Pasir Gudang, Bukit Raja and Kulim, as well as its large-scale integrated verbund production site in Gebeng, Kuantan."

CBRE|WTW has been hired as the exclusive marketing agent for the sale, and the closing date for submissions is Dec 19.

BASF did not speak about the asking price for the facility. The exact built-up is not known. But according to sources cited by the publication, based on recent transactions in nearby premises, the German-owned company may receive from RM100 million to RM150 million. 

Recent transactions in the area include The New Straits Times Press Malaysia Bhd's printing factory in Jalan Astaka U8/88, Taman Industri Bukit Jelutong. PNB development Sdn Bhd acquired the asset for Media Prima Bhd. It is located just 1.5km away from the BASF facility. 

Another transaction involved UMW Holdings Bhd, who disposed 38.8 acres of leasehold industrial land (10 km from Bukit Jelutong) for RM287.7 million. 

An industry experts back-of-the-envelope calculation values the Bukit Jelutong land at RM100 million, while another valuer estimates it is closer to RM160 psf, which amounts to RM84 million for the asset.