CDL to sell prime land in KL shopping belt

Property developer City Developments Limited (CDL) is in talks to sell a land site in shopping belt Jalan Bukit Bintang for a price tag of more than RM3,000 ($1,282) per square feet (psf), a fee that could become Malaysia’s most expensive land deal, according to the Malaysian newspaper Business Times.

The sale of the land parcel in downtown Kuala Lumpur could top Malaysian developer Sunrise Berhad’s acquisition of nearby Wisma Angkasa Raya in Jalan Ampang at RM2,588 psf.

In May, Malaysian conglomerates FFM Bhd and Kuok Brothers Sdn Bhd sold a piece of land in Jalan Perak, Kuala Lumpur, for RM2,200 psf.

With a size of 32,000 square feet, CDL’s land could be worth about RM96 million.

The prime land is situated between Grand Millennium Kuala Lumpur hotel and the Pavilion Kuala Lumpur shopping centre.

Bidders for the site are said to be the owner of Pavilion Kuala Lumpur and the YTL Group, which own prime assets along Jalan Bukit Bintang, said the newspaper.

When contacted by MediaCorp, a CDL spokesperson declined to comment.

Pavilion Kuala Lumpur is wholly owned by Malaysian developer Urusharta Cemerlang, which in turn is 51 per cent owned by Urusharta Cemerlang Development Sdn Bhd and 49 per cent by the Qatar Investment Authority.

The RM500 million Millennium Residences was planned for the site and was launched in 2007. But development of the 42-storey luxury condominium was apparently aborted after construction started in 2008, the newspaper wrote.

A Hong Leong Singapore spokesperson did not confirm whether the Millennium Residences project was scrapped, the paper added, but a check on the site found that the project sign and temporary fencing for Millennium Residences have been removed.

Source : Today – 5 Aug 2010

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