PJ industrial zone to see more sales as companies relocate

PETALING JAYA (April 28): The latest two properties on Jalan 225 and Jalan 51A put on the market may signal the beginning of further disposals within the industrial zone here, triggered by rising land values and industries seeking lower costs to stay competitive, reported The Edge weekly.

Jebsen & Jessen Logistic Services Sdn Bhd is seeking RM35 million-RM40 million for its property on 16, Jalan 51A/225 which comprises three 3-storey blocks, each with an office area and a warehouse or workshop.

The office space gross floor area (GFA) totals 55,540 sq ft, while the warehouse or workshop GFA totals 31,566 sq ft.

The properties are located on 2.1 acres of leasehold land, with the lease expiring on 2072.

The sale is being conducted via an expression of interest and the joint exclusive marketing agents of the property are VPC Alliance (M) Sdn Bhd and Grants & Leases Real Estate Solutions.

According to VPC Alliance managing director James Wong, Jebsen & Jessen Logistic Services had moved to an office building in UOA Business Park in Section U1 Shah Alam, Selangor, so that it can run a more centralised and efficient operation.

“It is also a tendency for many old trading offices to be asset-light,” he said.

Meanwhile, Sime Darby Bhd is selling its Mecomb office building at 20, Jalan 225, with sources saying the building could fetch as much as RM20 million.

The 35-year-old leasehold building is sitting on 1.02 acres of land and has 62 years left on the lease.

CBRE|WTW is the exclusive marketing agent of the property and had invited tenders last month with the closing date for submission of bids on April 5.

Wong observed that old trading and manufacturing houses in general are moving out of Petaling Jaya’s industrial area as it is no longer suitable for manufacturing and warehousing — the old factories have become semi-commercial, becoming car showrooms and offices.

In addition, some of these businesses have outgrown the smaller factories in the area, and production costs have also risen compared to industrial areas in Klang and Shah Alam.

Meanwhile, Savills Malaysia senior director of capital markets Nabeel Hussain expects further departures from the area as it transforms into a residential zone.

Prices in the area have increased by five times since the 1990s, from RM45 to RM50 psf to RM230 to RM260 psf for land with at least 50 years left on its lease.