Embassy land may fetch RM700m


MOST EXPENSIVE DEAL: 3.2ha site has potential to generate GDV of about RM3.5b, say sources the 3.2ha land in Jalan Ampang, here, owned by the French Embassy is expected to sell for about RM700 million, making it the most expensive deal in the Golden Triangle for land owned by foreign missions, sources said.

According to the sources, the site has the potential to generate a gross development value (GDV) of about RM3.5 billion.

“It could be higher if the developer undertakes an integrated commercial development featuring three to four residential and office towers, a signature mall and hotel,” a source told Business Times.

The deal may attract big property players such as Eco World Development Group Bhd, Mah Sing Group Bhd, UOA Development Bhd and TSR Capital Bhd, which are looking for small parcels of prime land for expansion.

In late 2012, SP Setia Bhd paid RM294.97 million, or RM2,200 per square feet, for the 1.22ha British High Commission land opposite the French Embassy.

SP Setia plans to redevelop the site, which currently houses a three-storey building, a clubhouse and a swimming pool, into an integrated commercial development with a GDV of RM1.04 billion.

In the following year, the German ambassador’s 0.7ha residence in Jalan Kia Peng, here, was put on sale with an indicative price of about RM2,500 per sq ft, valuing the site at about RM200 million.

“The French Embassy land has more development opportunities and frontage from both Jalan Ampang and Jalan Sejahtera. It is a rectangular site, so there is more flexibility in planning the development,” a source said.

The freehold land houses the ambassador’s residence, two bungalows and the embassy office built more than 40 years ago.

It is next to Intermark, which houses Doubletree by Hilton, offices and retail lots. The Ampang Park light rail transit station is within walking distance.

“If you study the location, there is a lot of potential value for the 3.2ha site,” added the source.

The land sale will be handled by CB Richard Ellis (CBRE) via an exclusive tender that opened yesterday.

CBRE associate director Nabeel Hussain said the tender will close on February 12.

He said the embassy will have a year to vacate the premises after the tender is concluded around July next year.

“It will take about five months to complete the transaction after the tender closes, and the site will be sold as it is.”

French ambassador to Malaysia Christophe Penot said in a statement yesterday the embassy had undertaken detailed studies over the past year before reaching the decision to sell the land.


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