• 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

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  • Kuala Lumpur Half Floor Office

    Comprising Kuala Lumpur best sought after from 2000sq.ft to 5000sq.ft Office

  • Kuala Lumpur Full Floor Office

    Comprising Kuala Lumpur best sought after Full Floor Office

  • En-Bloc Building

    Quick Summary of En-Bloc Building In The Market And Latest Transaction

  • KL Sentral RM 3.6million Cash Flow Asset?

    3 Tempting Reasons to own this

    • A)Under market value RM230psf (RM1150psf-RM920psf) (Making RM899,530 immediately)
    • B)Positive Cash Flow Commercial with ROI 6.51% (based on RM920psf with RM5.00psf) and ROI 7.30% (based on RM920psf with RM5.60psf) upon renewal.
    • C)Collection of investment portfolio with multinational tenant with good payment record

  • KL Sentral RM 25million Cash Flow Asset?

    3 Tempting Reasons to own this

    • A)Boutique investment per floor basis, able to provide substantial amount of space to multinational yet 10%-20% more affordable compare to commercial enbloc building in KL Sentral such as 1 Sentral, Menara CIMB, Axiata Tower.
    • B)Great ROI 6.00% in one of the most accessible address in KL CBD.
    • C)Collection of investment portfolio with multinational tenant with good payment record

  • Bangsar South RM 30million Cash Flow Asset?

    For this, what do investors get in return?

     

    A)The asset price total of RM30,259,200 able to generate annual of RM1,512,000 with an average of ROI 5.00%.
    B)As of 2018, Bangsar South development stood at 50%, another 50% mostly residential still in progress namely, Southlink, The Novum, The Bangsar Estate while IGB and UOA still holding several landbank in Bangsar South.
    C)Surrounding by MSC Status Fintech company and Finance Institution.
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  • Major Office Building Transactions

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    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.

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    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.

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    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.

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    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.

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    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.

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    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.

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

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    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.

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    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

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