01 June 2014

TA Global to develop KLCC land

  01 June 2014

By THE STAR
TA GLOBAL BHD, one of the largest landowners in the KLCC vicinity, is actively looking to embark on projects on some of the prime plots it owns.
According to a source, the company is looking to develop its 2.47-acre car park lot located across from KLCC into a five-star hotel cum serviced apartment project.
“The company is looking to develop a 60-storey building and plans to launch it later this year,” says a source, adding that ground works for the project are expected to commence in September.
The project, tentatively to be known as TA 3 and 4, has in fact been earmarked as a mixed commercial development strategically located along Jalan P Ramlee, Kuala Lumpur, just across the KLCC Twin Towers.
DTZ Nawawi Tie Leung executive director Brian Koh says the serviced apartments will definitely fetch premium prices given its location.
“It would depend how the company will position their products. Some serviced apartments are fetching close to RM2,000 per sq ft.
“The Four Seasons Place, for instance, is close to RM3,000 per sq ft.”
The Four Seasons Place is a 1.5 million sq ft integrated development owned by Venus Assets Sdn Bhd and is located next to the Petronas Twin Towers.
Given its prime location, one industry observer says he expects demand for TA’s proposed development to be good.
“If you look at The Four Seasons Place, around 80% of the residences have been sold since May last year,” he says.
According to reports, The Ritz-Carlton Residences located at the Jalan Sultan Ismail-Jalan Ampang intersection is priced at an average RM2,500 per sq ft.
According to TA Global’s annual report, TA 3 and 4 will comprise twin buildings that will house a five-star hotel and a branded serviced residences with a four-level podium of retail, food and beverage outlets and lifestyle facilities.
“According to the company, the building plans for this project was approved in February 2014 and the earthworks are expected to commence in the third quarter of this year once relevant building construction approval is obtained.
Upon completion, the project is expected to register a gross development value (GDV) of approximately RM1.4bil. The company is currently in negotiation with an international hotel chain to brand and operate the hotel and serviced residences.
TA Global recently also announced its proposal to develop a mixed-use development at the junction of Jalan Imbi and Jalan Bukit Bintang.
Located right in the heart of Kuala Lumpur’s Golden Triangle, to be known as Nova Square, the project is a 3.075 acres freehold mixed development that will consist of three towers of iconic lifestyle residences with the convenience of a retail podium.
Again, given the prestigious location, one industry observer says TA would be able to charge a good premium for the proposed project. “Properties such as Fairlane Residences are going for RM1,300 per sq ft while Pavilion Residences is fetching RM1,800 per sq ft,” she says.
According to TA Global’s annual report, Nova Square is accessible via the Smart Tunnel, Jalan Tun Razak and Jalan Ampang to other parts of Kuala Lumpur and Selangor.
The development order for this project is, however, still pending approval from the local authorities.
“Given the location of these projects, TA is in a good position to unlock the value of the landbanks that it has,” says an observer.
Another project that the company is undertaking is its mixed commercial and residential development, Damansara Avenue, in Petaling Jaya.
The development is sprawled over 48 acres of freehold land comprising of high end residences, retail outlets, lifestyle ofρces and malls which will be inter-connected by covered walkways, underground linkages and surrounded by parks and play areas.
“This integrated development is expected to fetch a GDV of approximately RM3.8bil over the next ten years,” the company says in its annual report. For its financial year ended Jan 31, 2014 (FY14), net profit rose 33% to RM123.90mil from RM93.43mil in the previous corresponding period, while revenue increased to RM692.44mil from RM638.02mil previously. The higher net profit was mainly contributed by finance and related services division due to significant loan recovery from financial receivables.
In its notes accompany its FY14 results, TA Global said it would continue to focus on its Damansara Avenue project and will be launching some new projects in the next financial year to sustain its earnings from the property development.
TA Global also has several projects overseas. It has a mixed development called The Gardens in British Columbia, Canada with a GDV of C$85mil (RM252mil). The project, which is currently under construction, is expected to be completed by the middle of this year.
Its other Canadian project is the Trump International Hotel & Tower in Vancouver.
The project, which has a GDV of C$496mil (RM1.47bil), comprises a 63-storey mixed-use development comprising of a luxury hotel tower with 147 hotel rooms, 218 high-end residential units, a 4-level podium and an eight-level underground car park.
The company is jointly developing the project with Canada’s Birkbeck Trust under a limited partnership arrangement. TA Global’s other hotel projects are the Radisson BLU Hotel in Sydney, Australia; Westin in Melbourne, Australia; Swissotel Merchant Court in Singapore; Aava Whistler Hotel in Whistler, Canada; Swissotel in Kunshan, China; and Moven pick Resort & Spa Karon Beach in Phuket, Thailand.
In its notes accompanying its FY14 earnings, the company said its hospitality business spanning across Singapore, Australia and Thailand is expected to continue to generate a stable recurrent income stream for the group.
“The growth and performance of our hospitality business in China and Canada in the next financial year will be driven and dependent on its country’s economic growth. We will continue to explore and evaluate opportunities to acquire new hotel properties to expand our existing hotels portfolio and to enhance the revenue contribution of our hospitality division,” it says.

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