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KUALA LUMPUR: Hap Seng Consolidated Bhd plans to build an office block on its newly acquired 1.1-acre freehold tract located adjacent to Menara Hap Seng on Jalan P Ramlee, Kuala Lumpur.
Hap Seng’s group managing director, Datuk Edward Lee Ming Foo said the construction of the office block will commence in 4Q2010 and will be completed within the next two-and-a-half years. Construction cost is estimated at more than RM300 million.
“We are in the process of amending the building plan,” he told reporters after the group’s annual and extraordinary general meetings on May 27.
On Dec 21, 2009, the group, through its wholly owned subsidiary Menara Hap Seng Sdn Bhd, entered into a sale and purchase agreement with the Eastern & Oriental Bhd’s wholly-owned subsidiary Radiant Kiara Sdn Bhd to acquire the land at the purchase price of RM103 million.
With the completion of the acquisition on March 29, 2010, the group is currently the proprietor of all three commercial properties from the intersection of Jalan P Ramlee and Jalan Tengah to the intersection of Jalan Sultan Ismail and Jalan P Ramlee.
The three commercial properties include the Menara Hap Seng and the Hap Seng Star Mercedes-Benz showroom.
Besides Menara Hap Seng, the company also owns a 50% stake in Menara Citibank in Kuala Lumpur’s Jalan Ampang. It paid RM310 million for the building in August 2009.
“We will consider [acquiring another 50% stake in Menara Citibank]. We are always looking at enhancing the value [of properties] but at the right price,” he said.
Menara Citibank, previously known as Menara Lion, is parked under Inverfin Sdn Bhd, which is 50% held by US lender Citigroup. Singapore’s CapitaLand Ltd has 30% and Amsteel Corp Bhd holds 20%.
Asked on the group’s plans to acquire more buildings, Lee said: “We are looking at opportunities but we are not in a hurry.”
