Most lucrative land parcels in KL owned by the government, GLCs

THE EDGE WEEKLY ISSUE#991

THE WEEK OF DECEMBER 2 – DECEMBER 8, 2013

Cover Story @ p74

The last few pockets of vacant prime land and old buildings with high redevelopment potential in the Golden Triangle are now largely in the hands of the government and government-linked corporations.

Entities such as KLCC Property Holdings Bhd, Lembaga Getah Malaysia, Permodalan Nasional Bhd (PNB), the Ministry of Information, Communication and Culture, and the Malaysian Investment Development Authority (MIDA) all have parcels of more than five acres each in strategic locations in the area.

The government perhaps has the biggest of these tracts – one in Jalan Ampang, which houses the Malaysian Tourism Information Centre (MaTIC), and another in Jalan Conlay, where Kompleks Kraftangan Malaysia is located.

The Conlay plot is owned by the Ministry of Information, Communication and Culture through Perbadanan Kemajuan Kraftangan Malaysia.  This piece of land sits next to the Royale Chulan Hotel and is just a stone’s throw from the proposed Harrods Hotel.

As land prices continue to rise in the city, this plot is potentially worth more than RM800 million or RM1,880 psf based on the price paid for the land purchased for Harrods Hotel last year. 

The other potentially lucrative plot for the government is the site of MaTIC in Jalan Ampang.  This part of the street is buzzing with activity now with several prominent ongoing projects, such as Tropicana Corp Bhd’s W Kuala Lumpur Hotels & Residences and Berjaya Corp Bhd’s Berjaya Central Park.

Magna Prima Bhd also recently took over the site of the Lai Meng School and plans a development with a GDV of RM1.8 billion on the 2.6-acre site.

It is also rumoured that the adjacent Zouk Club will be relocated and its site used for a new development.

Tucked away in the leafy Jalan Eaton is a 4.75-acre parcel that is owned by Lembaga Getah Malaysia.  This vacant site is opposite the Perlis and Siraj Palaces.

Not too far from Jalan Eaton, in Jalan Kia Peng and facing IJM Land Bhd’s Ampersand and MRCB’s soon-to-be-built RM300 million GDV project, is a 3.35-acre tract that is owned by the Federal Land Development Authority.

Up till several years ago, the land used to house The Centre for Advanced Design, but now, the Malaysian Design Development Centre occupies the space.  Based on a land transaction by YTL Corp Bhd in the area, FELDA could get up to RM2,000 psf or about RM290 million for the parcel.

Further down Jalan Kia Peng, in the corner before Jalan Conlay, sits the old and rundown Kelantan Palace.  Although there is a large “for sale” sign on the site, checks reveal that the site is now owned by Eastern & Oriental  (E&O) Bhd.

A source familiar with the matter tells The Edge that the group had wanted to sell the site for RM3,200 psf, but could not find a buyer.  So, it is planning to put up a development there.

Lembaga Getah also owns Bangunan Getah Malaysia, which is located directly opposite the Petronas Twin Towers.  Valuers note that this site could potentially be worth between RM3,000 and RM4,000 psf, which poses an interesting proposition to the board should it decide to unlock the value of the land.

Another piece of land with high redevelopment potential is Mida’s site in Jalan Ampang.  Located between OSK Plaza and Corus Hotel, the land, which comprises two plots, is now being used as an open-air car park.  Valuers say OSK Plaza’s redevelopment derive could nudge Mida into developing the land.