KUALA LUMPUR (July 10): There is no question that Media Prima is paying a high premium to repurchase Balai Berita (pictured) at an implied land cost of RM1,000 psf, The Edge Malaysia stated in a report this week.

The publication was reporting on the on the recent announcement that Media Prima Bhd plans to buy back Balai Berita — its headquarters in Bangsar — from PNB Development Sdn Bhd for a total of RM156.4 million.

“While there is no like-for-like comparison available, listings on Edgeprop.my of Menara Mutiara Bangsar, which is within walking distance of Balai Berita, puts its value at around RM590 per sq ft for a 1,000 sq ft office space,” explained the weekly.

Its report said that analysts “are divided on whether the move is wise as Media Prima’s initial reason in 2018 for selling the property, together with another piece of land in Shah Alam, was due to financial constraints”.

It revealed that some observers were “stumped that it [Media Prima] would be prepared to pay an additional 31% for the property in such a short period of time”.

The media group said the purchase would provide long-term security for the group’s operations. Balai Berita currently hosts Media Prima’s corporate HQ and the offices of its subsidiaries.

“The group intends to invest in new studios to cater to growing content production requirements and consolidate Media Prima’s news gathering operations … The new studios will also complement the group’s existing studios,” it said.

Read the full report in this week’s The Edge Malaysia

Get the latest news @ www.EdgeProp.my

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