Malaysian Resources Corporation Bhd (MRCB) is selling a piece of prime freehold land along Jalan Kia Peng measuring 1.866 acres to the Social Security Organisation (Socso) for RM323 million (RM3,973 psf). MRCB bought the land from the Government of Germany for RM259,155,708 (RM3,188 psf) in Apr 2015. The land was used as the official residence of the German Ambassador to Malaysia before the tender sale in 2015.
MRCB is expected to realise a profit of RM56 million from the sale. Its market value of RM323 million is based on the valuation appraised by IM Global Property Consultants on February 19, 2018.
The land sale comes together with an approved Development Order of plot ratio 1:12 to build a 78-storey commercial building comprises of Serviced Apartment & Hotel. On completion of the transaction, Socso shall also reimburse MRCB the development charges amounting to RM27,637,234.61 (RM340 psf). Together with the cost of development charges, the land price is RM4,313 psf.
MRCB added the proceeds from the sale would be used for the group’s working capital (including defraying expenses in connection with the proposed disposal) and property development activities within 12 months from receiving the purchase price.
Lot no: Lot 94, Seksyen 58, Jalan Kia Peng, Bandar Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur
Land area: 1.8661-acre
Category of Land Use: Nil
Land Price: RM323 million (RM3,973 psf)
Date of transaction: 19 March 2018
Vendor: Legasi Azam Sdn Bhd (company of MRCB Land) [“LASB”]
Purchaser: PERKESO (SOCSO)
1. MRCB purchased the land from The Government of The Federal Republic of Germany for RM259,155,708 (RM3,188 psf) in Apr 2015.
2. On completion of the transaction, PERKESO shall also reimburse LASB the development charges amounting to RM27,637,234.61 (RM340 psf).
3. Development order approved with plot ratio 1:12