SPB denies GLC offer to acquire assets in Damansara Heights

PETALING JAYA (Sept 28): Selangor Properties Bhd (SPB) dismissed market speculation that one of the government-linked companies has approached them to show the interest in purchasing Menara Milenium, reported The Edge.

Located in Damansara Heights, Kuala Lumpur, Menara Millenium and Plaza Batai, which are owned by SPB are believed to have attracted investors’ attention to acquire the properties at current time with the expectation that prices will reduce due to weak economic condition.

However, SPB chief operating officer Chong Koon San told the weekly that there is “no deal on the table”.

Earlier, sources said although the assets are not officially in the market, the property developer will consider letting go of these two assets if the offers are above market value.

Another source tells The Edge that SPB had carried out a valuation of certain assets after receiving offers for them and may want to dispose of some surplus land parcels.

According to the report, one estate agent had described SPB as a developer that would seek a “post Covid-19 price and 20% premium over it” should it consider a sale. But this is not surprising as the group is cash rich, and the investment assets have been contributing a substantial portion to its bottom line.

Menara Milenium, which was completed in 2000, is a Grade A, 25-storey office building with 555,000 sq ft in net lettable area (NLA) on a 163,579 sq ft plot. Tenants include Ernst & Young, Zico Law and a HSBC Bank Malaysia Bhd branch.

A source says the building had previously been put up for sale and estimates its value at RM800 psf or RM444 million, although SPB’s FY2018 annual report pegs its net book value at RM341.84 million.

As for Plaza Batai, it is a boutique commercial centre comprising 16 units of two-storey terraced shoplots along Jalan Batai. The units have 21,760 sq ft of NLA on the ground level and 25,400 sq ft on the first floor.

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