Bandar Malaysia in the limelight

THE most anticipated property deal is the sale of Bandar Malaysia — the 486-acre township planned at the site of the old Sungai Besi airport. 1Malaysia Development Bhd (1MDB) is selling 60% of project with an estimated gross development value of RM40 billion.

It was officially announced that two parties had made it to the final stage of the bidding and it was reported that the names include Tan Sri Lim Kang Ho’s Iskandar Waterfront Holdings Sdn Bhd in partnership with China Railway Construction Corp Ltd.

The Edge learnt that Tan Sri Desmond Lim and a Qatari-backed consortium had also put in a bid after the close of the tender. Yet another name that has surfaced is that of Permodalan Nasional Bhd. 1MDB hopes to make an announcement by Dec 31.

Given the monumental size of the project, everyone is eagerly awaiting the announcement of the winning bidder. Stanley Toh, director of LaurelCap Sdn Bhd, is of the view that Bandar Malaysia will be very exciting because it is one of the largest pieces of land in Kuala Lumpur city available for redevelopment.

“Surrounded by controversy, it will be very interesting to know who will be the winner of the tender,” Toh says.

Likewise, Robert Ang, managing director of real estate firm Rahim & Co, thinks Bandar Malaysia will make a huge impact. He notes that the sheer size of this project will shape the city for decades to come.

The other top anticipated deal in 2016 is the sale of the site of SRJK (Cina) Lai Meng in Jalan Ampang by Magna Prima. Magna Prima purchased the parcel in 2010 but the transaction was only completed in May 2014. Magna Prima paid RM148.2 million, or around RM1,350 psf, for the 113,926.6 sq ft parcel. It has obtained a development order for the site with an approved plot ratio of 12.

Talk of Magna Prima’s plans to sell the land has been ongoing from the beginning of this year. In August, the company hired an exclusive agent to carry out the tender exercise.

“The sale of this landmark site will likely usher in a high-end mixed development in a section of Jalan Ampang already becoming synonymous with some of the biggest names in luxury real estate,” Ang says of the potential of this site.

Other highly anticipated deals include the sale of Hotel Maya, the parcel in Jalan Tun Razak that has been put up for sale by Bukit Kiara Properties Sdn Bhd and Vista Tower at The Intermark. Exclusive agents have been hired to seek buyers for these assets.

Real estate agents are also keen to see some developments related to 1MDB’s other assets. Sarkunan Subramanim, managing director of Knight Frank Malaysia, is waiting to see if the sale of 1MDB’s Air Itam land in Penang will materialise in 2016.

Meanwhile, Nabeel Hussain, associate director at Savills Malaysia, would like to see the sale of the remaining parcels held by 1MDB since it is looking at selling land as part of its rationalisation plan.

This article first appeared in The Edge Malaysia on Dec 21, 2015. Subscribe here for your personal copy.