By Sharen Kaur
KUALA LUMPUR: Property developers from China have expressed interest to bid for government land here which has a reserve price of RM750.3 million, or RM900 per square feet.
The Minister of Finance Inc (MOF Inc) is selling 7.74ha of land in Jalan Lembah Ledang (fronting Jalan Tuanku Abdul Halim, previously known as Jalan Duta).
The land will be developed into a commercial development.
According to property experts, the proposed commercial development is expected to generate between RM5 billion and RM8 billion in gross development value (GDV). This is based on a plot ratio of 1:5.
"If you look at the current market value, the land should fetch more than RM5 billion in GDV, depending on product type. I believe we are looking at office towers, hotels, a mall and, possibly, serviced apartments. This is prime freehold land in a mature area," one of them told Business Times.
Within 5km radius is Istana Negara, Publika Shopping Gallery, Matrade Exhibition and Convention Centre and the Kuala Lumpur Courts Complex.
The land is some 10km to the city centre and Bangsar.
Sources said MOF Inc will target not only the highest bidder for the land but also one which could sustain the vibrant atmosphere with new and exciting concepts.
"Once the tender closes and the proposals go through the final selection, it will be brought to the cabinet for approval," said the source.
Malaysia has been the darling of Chinese developers since 2013 when they actively started to buy land in the Klang Valley and southern Johor.
It started with Guangdong-based Country Garden, a top 10 Chinese developer, which bought land in Iskandar Malaysia.
The Iskandar hot spot then attracted R&F Properties and Greenland Group, where the firms invested nearly 50 billion yuan (RM30 billion).
Meanwhile, Hong Kong-listed Agile Property Holdings Ltd has partnered PJ Development Holdings Bhd to acquire land in Mont Kiara for RM186 million.
They are building Agile Mont Kiara, which has 11 residential towers worth RM1.2 billion.
It is understood that apart from the Chinese developers, there are also Malaysian builders and other foreign firms which are interested in the MOF Inc land.
They had attended a briefing on Tuesday in Putrajaya.
Tender documents for the land can be purchased until May 6.
The closing date for the tender is at noon on May 9.
KUALA LUMPUR: Property developers from China have expressed interest to bid for government land here which has a reserve price of RM750.3 million, or RM900 per square feet.
The Minister of Finance Inc (MOF Inc) is selling 7.74ha of land in Jalan Lembah Ledang (fronting Jalan Tuanku Abdul Halim, previously known as Jalan Duta).
The land will be developed into a commercial development.
According to property experts, the proposed commercial development is expected to generate between RM5 billion and RM8 billion in gross development value (GDV). This is based on a plot ratio of 1:5.
"If you look at the current market value, the land should fetch more than RM5 billion in GDV, depending on product type. I believe we are looking at office towers, hotels, a mall and, possibly, serviced apartments. This is prime freehold land in a mature area," one of them told Business Times.
Within 5km radius is Istana Negara, Publika Shopping Gallery, Matrade Exhibition and Convention Centre and the Kuala Lumpur Courts Complex.
The land is some 10km to the city centre and Bangsar.
Sources said MOF Inc will target not only the highest bidder for the land but also one which could sustain the vibrant atmosphere with new and exciting concepts.
"Once the tender closes and the proposals go through the final selection, it will be brought to the cabinet for approval," said the source.
Malaysia has been the darling of Chinese developers since 2013 when they actively started to buy land in the Klang Valley and southern Johor.
It started with Guangdong-based Country Garden, a top 10 Chinese developer, which bought land in Iskandar Malaysia.
The Iskandar hot spot then attracted R&F Properties and Greenland Group, where the firms invested nearly 50 billion yuan (RM30 billion).
Meanwhile, Hong Kong-listed Agile Property Holdings Ltd has partnered PJ Development Holdings Bhd to acquire land in Mont Kiara for RM186 million.
They are building Agile Mont Kiara, which has 11 residential towers worth RM1.2 billion.
It is understood that apart from the Chinese developers, there are also Malaysian builders and other foreign firms which are interested in the MOF Inc land.
They had attended a briefing on Tuesday in Putrajaya.
Tender documents for the land can be purchased until May 6.
The closing date for the tender is at noon on May 9.
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