According to a report based on sources by The Edge Malaysia, tycoon Tan Sri Desmond Lim Siew Choon “bought Plaza Batai in Damansara Heights”, while Datuk Vinod Shekar, chairman and group CEO of Petra Group “purchased a sizeable office space at Senada at the TPC Golf & Country Club”.
The report revealed that Lim paid RM100 million to Selangor Properties Bhd (SPB) for Plaza Batai and Vinod purchased the top 10 floors of office space totalling 100,000 sq ft at Senada.
“Industry observers believe” Lim paid for the land rather than the building. The Edge wrote that as “Plaza Batai sits on a 96,900 sq ft freehold site… This means, at RM100 million, Lim paid about RM1,030 psf for the land”. Vinod “paid about RM85 million or RM850 psf for the office space”.
Plaza Batai is a 48-year-old building comprising 16 units of two-storey terraced shoplots. The units on the ground floor have a net lettable area (NLA) of 21,760 sq ft while the units on the first floor have 25,400 sq ft of NLA.
Meanwhile, Senada Residences comprises one 22-storey block of office tower and two blocks of serviced apartments (22 and 21 storeys) built atop a four-level retail podium. The mixed-use development sits on a 4.3-acre site and the NLA for the office component is 195,024 sq ft.
“The pricing of RM800 to RM1,000 psf would be a fair price for the area. At RM1,000 psf, it would not be a steal, mainly because of the low plot ratio, but it can be considered a trophy asset,” valuer Stanley Toh of LaurelCap Sdn Bhd said about the Plaza Batai purchase. He also added that “he is unsure whether the land has much redevelopment potential as its plot ratio is two”.
As for the Senada deal, Adzman Shah Mohd Ariffin, CEO and chief real estate consultant at ExaStrata Solutions Sdn Bhd said that “while there is an oversupply of office space in Kuala Lumpur, there is still take-up on the outskirts”. He added that the acquisition was not surprising.
Read the full report in this week’s The Edge Malaysia
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