Federal Republic of Germany land up for sale

KUALA LUMPUR: Two parcels of land owned by the Federal Republic of Germany in the city centre are being sold via tender by Rahim & Co Chartered Surveyors Sdn Bhd.

The plots are in Jalan Kia Peng and Jalan Tun Razak, measuring 1.87 acres (0.75ha) and 0.38 acres, respectively.

The Jalan Kia Peng land is a freehold mixed-use residential plot, and is next to the KL Convention Centre. It currently houses a vacant mansion with staff quarters and swimming pool, and was the former residence of the German ambassador. The land has a guide price of RM2,300 per sq ft (psf).

The Jalan Tun Razak plot is next to the Brazil embassy and has two vacant detached buildings. It is a freehold commercial land and used to house the Goethe-Institut, a cultural centre. The land has a guide price of RM1,500 psf.

According to Rahim & Co head of investments, James Goh, the guide prices are based on a plot ratio of six as indicated by the Kuala Lumpur City Hall. The Federal Republic of Germany has vacated both plots more than 10 years ago.

Federal_9Jan15_theedgemarketsThe tender exercise opened on Dec 15, 2014 and will conclude on Jan 26, 2015, said Goh.

“Based on our experience with the British High Commission, which put its land up for sale two years ago, we can expect buyers to place higher bids for the land.”

The 3.07-acre British High Commission plot was sold to S P Setia Bhd for RM2,200 psf — higher than the guide price of RM1,500 psf.

He noted that it’s a trend for embassies to sell their land as part of an exercise to trim their countries’ budgets.

Most embassies prefer to move into green-certified office buildings or those that have green features.  

“Moving into office buildings [reduces] management costs compared with managing large tracts of land,” Goh said.

This article first appeared in The Edge Financial Daily, on January 9, 2015.

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