183 Ampang up for sale

TWO prominent businessmen are looking at divesting 183 Ampang, a six-year-old residential project located close to two major roads in Kuala Lumpur — Jalan Ampang and Jalan Tun Razak — possibly for as much as RM2,400 psf or RM317 million. 

The duo, Genting Group chairman Tan Sri Lim Kok Thay and Only World Group Holdings Bhd managing director Datuk Koh Cheng Keong, with another individual, Norlidah Mohd Daud, are believed to be negotiating to sell 183 Ampang, which is located adjacent to a prime parcel that was recently put up for sale by Bukit Kiara Properties Sdn Bhd (see map).

183 Ampang, a low-rise resort-style condominium on a 3.04-acre site off Jalan Ampang, is owned by Awana Goldhill Sdn Bhd, in which Koh holds the majority stake of 55%, Norlidah 30% and Lim 15%.

An advertisement board placed at the site shows that Awana Goldhill has hired WTW Real Estate Sdn Bhd to conduct the sale by tender. Closing date for bids has been set for Sept 8. 

digitaledge Weekly understands that the owners of 183 Ampang are eager to sell the land, hopefully to the same party who may win the bid for BKP’s parcel. Moreover, the sale of the latter’s parcel presents an opportunity for Awana Goldhill to maximise its asking price because it would allow the buyer to have a larger piece of land. BKP’s land measures 39,354 sq ft or roughly 0.9 acre. Should the purchaser buy both parcels, he would have four acres in total for development.

Koh did not respond to digitaledge Weekly’s query on whether the trio were looking to sell 183 Ampang.

In the event the purchaser buys both parcels, any future development may be able to bank on the strategic location of the land, which can offer entrances from both Jalan Ampang and Jalan Tun Razak.

In June, BKP invited bids for its freehold parcel with an approved plot ratio of 9.2. It has also obtained a development order for the construction of luxury serviced apartments on the land. Apart from Jalan Tun Razak, BKP’s rectangular parcel shares a border with an Auto Bavaria showroom and the headquarters of Weststar Maxus Distributors Sdn Bhd. A large portion of its fourth border is shared with 183 Ampang.

A land search at the Federal Territories Director of Lands and Mines office shows that 183 Ampang is on freehold land but it is also spelt out that only condominiums can be built on the site. Nevertheless, industry players reckon that it may be possible to amalgamate both parcels and convert the land use to commercial.

As for the price Awana Goldhill may be able to get for 183 Ampang, it must be noted that the condominium was bought from Boustead Weld Court Sdn Bhd, a 100% subsidiary of Boustead Properties Bhd, in January 2013 for RM118 million. At this price, the 132,309 sq ft asset was purchased for slightly less than RM892 psf.

183 Ampang is also strategically located next to a piece of land previously owned by the British High Commission (see map), which was purchased by S P Setia Bhd. The developer won the bid to buy the land for RM294.97 million or RM2,200 psf in December 2012.

Incidentally, the 134,075 sq ft parcel is almost the same size as the 183 Ampang site. Interestingly, Awana Goldhill is believed to have tried to flip the 183 Ampang asset to S P Setia.

While one source indicates that Awana Goldhill may ask for as much as RM2,400 psf, a valuer who declines to be named gives it a more conservative estimate of RM1,600 psf and that too if both parcels can be amalgamated into a commercial plot. At this price, Awana Goldhill may be able to close a deal at around RM211 million.

Meanwhile, a search on the Companies Commission of Malaysia’s website reveals that the directors of Awana Goldhill are Koh and Datin Chew Lean Hong. In its financial year ended June 30, 2014, the company posted a loss after tax of RM4.14 million compared with a profit after tax of RM7,665 in FY2013. Revenue in FY2014 was RM1.13 million compared with RM37,122 in the previous year. Accumulated losses stood at RM4.97 million. As at June 30, 2014, the company’s total liabilities amounted to RM126.49 million, of which RM83.31 million were current liabilities. 

183 Ampang, which was completed in 2009, is a five-storey condominium with 43 units in four blocks. The built-up of the units ranges from 1,623 to 2,650 sq ft. Based on recent property listings, a 2,073 sq ft fully furnished unit can fetch rent of RM8,000 per month. The party that purchases the asset could retain the units for recurring income until it is ready to redevelop the site at a future date.

It is understood that BKP’s tender has attracted a handful of bids and that the results are expected to be out soon. 

This article first appeared in the digitaledge WEEKLY on Aug 31, 2015. Subscribe here.