• Insight into Malaysia Corporate Asset

     

    Office transactions were rather quiet in 2016 with six office buildings sold for a total value of RM818 million. The investment market has been equally inactive in 2017, with only four office building transactions, although these aggregated a higher total investment amount of about RM1.4 billion.

     

    The four transactions recorded during the year concerned the sale of The Ascent @ Paradigm, bought by EPF from Jelas Puri Sdn Bhd for RM321 million, Menara Prudential, bought by KL 33 Sdn Bhd from OCBC Properties (M) Sdn Bhd for RM125 million, Wisma Selangor Dredging, bought by Golden Eagle Realty Sdn Bhd from Selangor Dredging Bhd for RM480 million, and Vista Tower, bought by AmanahRaya REIT from BlackRock Inc. for RM430 million

  • Major Office Building Transactions

    Most of the high-quality office space in KL were transacted in the range of RM1,000-1,200 per sq. ft.. However, there were two prominent office buildings sold for more than RM1,200 per sq. ft., i.e. Integra Tower (in 2015) and Platinum Sentral (in 2014). High-grade office buildings with high occupancy rates in KL are always attracting local buyers, including institutions, REITs and private buyers.

    2007 Major Transactions

    2007 was a landmark year as far as major transactions are concerned. The most significant benchmark cases were the Icon and Menara Glomac transactions which were investment fund-led but without prelets in sight. In each case, it was the Kuwaiti Finance House which inked the deal and the commercial space market is now quoting prices of RM1,120 per sq ft as a result. Yields have been compressed but in the case of the Menara Bumiputra-Commerce we do not see a benchmark as it is below 5% with little built in rental growth. Already 2008 looks like continuing this trend although we are not sure the price of RM1,120 will be surpassed.

    2008 Major Transactions

    There were four major transactions of office buildings in the 2H 2008, namely Menara Citibank, Kenanga International building and Menara Standard Chartered located in Kuala Lumpur, and CP Tower in Petaling Jaya. During the 4Q of 2008, however, two major office transactions were aborted. First of all, the sale of Menara Citibank to IOI Corporation Berhad was cancelled by the purchaser in November with the effect of economic slowdown being given as the reason. Secondly, the sale of the Kenanga International building to Tower REIT was rescinded in December when certain condition precedents were not met. Meanwhile, Menara Standard Chartered was sold by Reco City Sdn Bhd (affiliate of GIC Real Estate Pte Ltd) to ING Insurance Bhd in November. In December, PHBB (Pelaburan Hartanah Bumiputera Bhd) bought CP Tower from CIMB-Mapletree.

    The Malaysian real estate investment market ended 2009 on a strong note with a surge in activity in the final two months of the year. Throughout the year there were a total of 13 major transactions of office buildings in the Klang Valley with a total transaction value of RM1.789 billion. Also significant was the sale and leaseback of the CIMB group’s branches and offices nationwide to the Employee’s Provident Fund for a total consideration of RM302.45 million. By year nd, a number of local and overseas funds had re-entered the market and we foresee continued strong interest in acquiring high quality office assets.

    16 major purpose-built office building transactions were reported in 2010, the majority of which involved acquisition by real estate investment trusts (REITs). Significant deals involving REITs include the sale of Menara UOA Bangsar ower, Wisma UOA Damansara II, Sunway Tower, Menara Sunway, Dana 13, Menara PKNS, and FSBM Plaza.

    11 major purpose-built office building transactions were reported in 2011, with three of the acquisitions involving real estate investment trusts (REITs). Significant deals involving REITs include the transaction of Putra Place via public auction and Prima 9 and Prima 10 office buildings in Cyberjaya. Other transactions included the involvement of foreign companieswith the likes of Wisma Goldhill, Bangkok Bank and U1 Office Tower as well as local corporations.

    The most significant office transaction during the quarter was the sale of MBSB HQ by PJ Sentral Development Sdn Bhd to MBSB for a total consideration of up to RM239 million. The building is located in PJ Sentral Garden City and its 27- to 30- storey office building comprise a total of 281,455 sq ft of net lettable office space. Other transactions included 3 office buildings in Horizon in Bangsar South for a total consideration of RM369.25 million to a different company for each tower.

    The office investment market was active during the review period with 10 recorded transactions worth a total of around RM1.35 billion in value. Significant office transactions include the East Wing of The Icon, Jalan Tun Razak (RM226mil, RM843 per sq ft) and Menara Sapura Kencana, Jalan Dutamas (RM260 mil, RM920 per sq ft) amongst others which are detailed in the table below.

    The investment market was fairly active in 2014 recording five notable transactions with a combined value of about RM1.12 billion.

    The investment market was active during 2015 recording nine notable transactions with a combined value of circa RM2.95 billion

    Notes:
    (1) Fitters Building Services Sdn. Bhd., a subsidiary of Fitters Diversified Bhd., has signed a sale and purchase agreement with GCP Tower Sdn. Bhd. to purchase the freehold property, which comes with 70 parcels of office lots and 363 units of car park bays. It intends to redevelop the site into a small office home office (SoHo) concept building.
    (2) Hong Leong Bank Berhad (HLB) has disposed Menara Raja Laut, a 27-storey office building in Jalan Raja Laut, Kuala Lumpur, to Hong Leong Assurance Berhad. As at 18 March 2015, the building has an occupancy rate of 41% (36% of which are being occupied by HLB and its subsidiaries).
    (3) Integra Tower, a 39-storey grade A office building with LEED Platinum certification, forms part of The Intermark development that also comprises Vista Tower, Double Tree by Hilton and the Intermark Mall. The office tower which comes with 850 car park bays is being acquired by Retirement Fund Incorporated (KWAP).
    (4) AmanahRaya Reit has disposed Wisma AmanahRaya, a 15-storey purpose-built office building with two basement levels constructed on two pieces of leasehold land in Jalan Ampang, to Annex Sentral Sdn. Bhd., a wholly-owned subsidiary of AmanahRaya Development Sdn. Bhd. (a wholly-owned subsidiary of Amanah Raya Berhad). As at 27 May 2015, the 48-year-old office building is being fully tenanted by Amanah Raya Berhad and the tenancy agreement will expire in August 2016.
    (5) Menara Hong Leong (Office Tower A) is a 33-storey purpose-built stratified office building (71% completed as at May 2015) within the on-going integrated commercial development of Damansara City Kuala Lumpur. The indicative cash consideration for the entire issued and paid-up share capital of DC Tower Sdn. Bhd. is RM189,333,000. The value of Office Tower A is calculated based on RM1,150 per sq. ft.
    (6) Malaysian Resources Corp Bhd. (MRCB) has proposed to sell Menara Shell together with a five-storey podium and a four-storey basement car park in the locality of Kuala Lumpur Sentral to MRCB-Quill REIT (MQ REIT) for RM640 million.
    (7) AmFIRST Real Estate Investment Trust (REIT) is disposing of a 13-storey office building known as AmBank Group Leadership Centre at Jalan P. Ramlee for RM36 million. The freehold building comprises a 10-storey office block, a penthouse and a three-level car park.
    (8) The purchase consideration of RM540 million includes the retail component, namely Tropicana City Mall, which has a NLA of 448,248 sq. ft. and is about 89.2% occupied while the office tower is fully occupied. The apportionment of the two different components, however, is not available.
    (9) Block N, known as the Iconic Office, at Empire City Damansara is a 45-storey corporate office tower which is physically completed (as at December 2015). The Certificate of Completion and Compliance (CCC) of the office building is expected in early 2016.

    Most of the high-quality office space in KL were transacted in the range of RM1,000-1,200 per sq. ft. However, there were two prominent office buildings sold for more than RM1,200 per sq. ft., i.e. Integra Tower (in 2015) and Platinum Sentral (in 2014). High-grade office buildings with high occupancy rates in KL are always attracting local buyers, including institutions, REITs and private buyers.

  • Corporate Investment Asset

    A)The Horizon @ Bangsar South
    B)The Vertical @ Bangsar South
    C)Bangsar Boutique Office Tower @ Bangsar
    D)Mutiara Damansara Corporate Office @ Mutiara Damansara
    E)Boutique Office Tower @ KL Eco City
    F)Boutique Office Tower @ UOA Business Park
    G)PJ New Office Block @ Along Federal Highway
    H)Q Sentral Penthouse @ KL Sentral
    I)7 Storey Retail Office @ Jalan Tun Razak
    J)KL Metropolis Office Tower @ KL MEtropolis
    K)KLCC Tun Razak Corporate Building @ KLCC
    L)KLCC Sultan Ismail Corporate Building @ KLCC
    M)Bukit Ceylon Corporate Building @ KLCC
    N)KLCC Tun Razak Corporate Building @ KLCC
    O)Cyberjaya Corporate Building @ Cyberjaya

    A1)The Horizon Bangsar South
    Size: 72,000sq.ft
    MSC Grade A Office Tower
    Asking Rental: RM6.00psf
    Asking Sale: RM1055psf @ RM76million
    Feature: MSC Cybercentre, positioning as IT Hub and surrounding by upcoming integrated development
    Train: LRT Kerinchi Station

     

    A2)The Horizon Bangsar South
    Size: 132,000sq.ft
    MSC Grade A Office Tower with 90% occupancy
    Asking Rental: RM6.00psf
    Asking Sale: RM1325psf @ RM175million
    Feature: MSC Cybercentre, positioning as IT Hub and surrounding by upcoming integrated development
    Train: LRT Kerinchi Station

     

    A3)The Horizon Bangsar South
    Size: *247,000sq.ft*
    MSC Grade A MSC Office Tower with 100% occupancy
    Asking Rental: RM6.00psf
    Asking Sale: RM923psf @ RM228million
    Feature: MSC Cybercentre, positioning as IT Hub and surrounding by upcoming integrated development
    Train: LRT Kerinchi Station

     

    B)The Vertical Bangsar South
    Size: 90,000sq.ft (Consisting of 5 floors)
    MSC Grade A Office Tower
    Asking Rental: RM6.20psf
    Asking Sale: RM1200psf @ RM108million
    Feature: MSC Cybercentre, positioning as IT Hub and surrounding by upcoming integrated development
    Train: LRT Kerinchi Station

    C)Bangsar Boutique Office Tower
    Gross Built Up: 67,890sq.ft
    Nett Lettable Area: 44,690sq.ft
    Refurbished Office Tower with 90% occupancy
    Asking Rental: RM5.50psf
    Asking Sale: RM55million
    Feature: Refurbish building in prominent Bangsar vicinity
    Train: LRT Bangsar Station

    HIGHLIGHTS
    •Potential of redevelopment
    •Occupancy rate at 90% (with leaseback)
    •No other similar standalone building in Bangsar
    •Connectivity to Bangsar LRT Station
    •Close to Bangsar Village 1 & 2 shopping malls, KL Sentral Station, hotels namely Hilton, Le Meridien, Aloft

    D)Muatiara Damansara Corporate Office

    Size: 155,285sq.ft
    Grade A Office Tower with 94% occupancy
    Asking Rental:RM5.50psf
    Asking Sale: RM1030psf @ RM160million
    Feature: 4 years new building located in matured Mutiara Damansara Township
    Train: MRT Surian Station

    E)Boutique Office Tower @ KL Eco City
    Size: 60,444sq.ft
    Grade A Office Tower with newly vacant process
    Asking Rental: RM6.00psf
    Asking Sale: RM1600psf @ RM96.7million
    Asking Sale: To be discussed upon meet up with landlord
    Feature: KL Eco City, a 25-acre integrated mixed-use development, is situated along Jalan
    Bangsar, next to Mid Valley City and surrounded by established commercial
    precincts.
    Train: LRT Abdullah Hukum & KTM Abdullah Hukum

    F)Boutique Office Tower @ UOA Business Park
    Size: 116,000sq.ft
    Grade A Office Tower with newly vacant process
    Asking Rental: RM5.50psf
    Asking Sale: RM900psf @ RM104million
    Feature:
    Integrated development with Ingress and egress from Federal Highway
    Direct link bridge to Subang KTM station and the LRT station
    Open air car park beside UOA Business Park and ample surface car park
    Train: LRT Subang Jaya & KTM Subang Jaya

    G) PJ New Office Block @ Along Federal Highway
    Size: 102,566sq.ft
    Grade A Office Tower under construction (Completion by end of 2017)
    Asking Rental: N/A (For Sale Only, we can propose rent to landlord subject to acceptence)
    Asking Sale: RM700psf @ RM71.7million
    Feature: Integrated 3 acres development with direct access from federal highway

    Corporate Investment RM 10-30 Million

    H) Q Sentral @ KL Sentral
    Size: 32,701sq.ft
    Penthouse Duplex Office-Highest Floor and Largest floor plate in KL Sentral
    Asking Rental: RM7.00psf
    Asking Sale: RM1650psf @ RM53.9million
    Feature: Integration between KL Sentral & MRT with link bridge access with Grade A, MSC, GBI (Gold) building certification

    I)7 Storey Retail Office @ Jalan Tun Razak
    Size: 108,880sq.ft
    Asking Sale: RM596psf @ RM65million
    - As most buildings in KL city centre are high rises, it is indeed rare to find a FREEHOLD 7-storey mid-rise office tower that comes with a gross floor area of approximately 108,880 sq ft.
    Excellent Accessibility
    - located at the main southern gateway of Kuala Lumpur city centre and its strategic location allows easy access via major highways.
    Naming Rights
    - Superb visibility, and with more than half a million passing traffic daily, Southgate is the landmark-status location for establishing corporate headquarters.
    Growth Potential
    - It is an upcoming area for new commercial developments and close to Bandar Malaysia - The urban redevelopment of the old airport in Sungai Besi by 1MDB.
    Public Transportation
    - The Chan Sow Lin LRT station is just a mere 0.7km away, bus and taxi services will be available at the doorstep. There are also upcoming MRT stations to be constructed nearby.
    Smart Investment
    - The Tower has secured about 75% occupancy and the remaining space of approx. 25,000 sq ft that suitable for you to establish a headquarter or expanding your office

    J)KL Metropolis Office Tower

    Size: 159,742sq.ft
    Price: RM1170psf @ RM187million

     

    Highlight Feature:

    1) Having strong branding present in market with maximum exposure overlooking MITEC, MATRADE, MITI and Duta High Court in 75acres masterplan of KL Metropolis
    2) Multiple usage of en-bloc building able to have naming right (Wisma ABC or ABC) and corporate signage.
    3) Investment opportunity to become corporate landlord with scalability (for own used and leasing opportunity)

    K)KLCC Tun Razak Corporate Building
    Net Size: 256,676sq.ft
    Price: RM310million
    Occupancy: 82%

     

    Feature:-
    • An iconic & landmark Grade ‘A’ office building with Freehold Commercial Tittle
    • The first & only office building in Malaysia to be accorded the stringent CONQUAS award
    • Conceptualized by internationally renowned architect – CPG Consultants Pte Ltd
    • The building comprises 4 levels of basement car parks, 3 levels of elevated car parks; retail spaces in ground floor, mezzanine and level 5, 15 levels of office spaces & a roof top

    L)KLCC Sultan Ismail Corporate Building
    Gross size: 342,145sq.ft
    Net size: 175,252sq.ft
    Land Size: 0.50acre
    Price: RM130million

     

    Feature:-
    -Currently building is vacant, great opportunity for redevelopment, Change of building usage
    -Freehold Commercial Tittle
    -268 parking bays

    M)Bukit Ceylon Corporate Building
    Land Area: 0.60 acres or 26,468sq.ft
    Net Lettable Area: 113,163sq.ft
    No of car parks: 92 car park
    Average Rental: RM4.50psf
    Occupancy: 10%
    Investment Value: RM120million

     

    Feature:
    •High Potential for redevelopment for residence or hotel
    •Last renovation RM6million
    •Nearby shopping mall, hotel and tourist district

    N)KLCC Tun Razak Corporate Building
    Land Area: 30,510sq.ft
    Net lettable Area: 171,115sq.ft
    Occupancy Rate: 33%
    Investment Value: RM155million

     

    Feature:
    •Potential become
    •Surrounded by international Five-Star hotels and luxury brand outlets
    •Upmarket and premium neighbourhood such as Tun Razak Exchange(TRX) and TREC entertainment hub.
    •Next to a premiere golf course in Malaysia
    •55-minutes to Singapore via High Speed Rail (2020 completion)
    •Completed Public Transport MRT Station
     

    N)Cyberjaya Corporate Building
    Net Size: 197,987sq.ft
    Occupancy: 45%
    Price: RM632psf @ RM125million
    Rental: RM4.50psf

     

    Feature:
    •MSC Status Certified Building with power back up 99.9% guarantee under 10th bill of guarantee
    •Large Floor area (26,000 sq ft & 19,000 sq ft)
    •Availability of Centralized Facilities – Cafeteria, Gymnasium and Child Care Centre
    •Availability of Multilevel Carpark
    •Building visibility from MEX Highway
    •Availability of Cyberjaya supporting services – Dedicated Transportation System (DTS), Park & Ride, Cyberjaya Club House
    •Ready building and for immediate occupation

  • Contact Us

    Kindly contact the real estate consultant that bringing you the opportunity