This article first appeared in The Edge Malaysia Weekly on June 19, 2023 - June 25, 2023

AKISAMA Corp Sdn Bhd, a privately held property developer with projects mainly in the Klang Valley, plans to build a 70-storey mixed-use development in Bangsar, Kuala Lumpur, on a 5.8-acre tract in Jalan Bukit Pantai that it bagged two years ago. When completed, the development, comprising shops and serviced apartments, will be one of the tallest buildings in the affluent neighbourhood of Bangsar.

It is learnt that the developer plans to launch the project that will offer more than 1,300 serviced apartments as soon as the property market picks up pace.

Akisama is the developer behind the successful Parklane OUG project that features 4,335 serviced apartments and Razak City Residences, which offers 5,748 serviced apartments.

Documents sighted by The Edge show that in January 2022, Akisama submitted to the Kuala Lumpur City Hall (DBKL) a development proposal for the parcel in Jalan Bukit Pantai (known as Lot 481838) and obtained conditional approval for it the next month. A check with industry experts reveals that Lot 481838 is located adjacent to Tenaga Nasional Bhd’s headquarters and opposite Hospital Pantai Kuala Lumpur and Zehn Bukit Pantai (See map).

Akisama’s submission to DBKL included an application to convert the land use from residential to mixed commercial and a development proposal to build a 70-storey mixed-use development featuring 1,359 serviced apartments and 61 shops.

The 70-storey structure will include one storey for the water tank and pump, five storeys for parking bays and shops, 12 storeys of parking for the serviced apartments and two storeys of facilities for residents. The 1,359 serviced apartments will be spread over three 51-storey blocks that will sit atop the podium comprising the shops and parking bays.

A land title search on the website of the Kuala Lumpur Federal Territory Lands and Mines Office reveals that Lot 481838 is a leasehold parcel with 96 years remaining on the lease, suggesting that it is a newly registered title. The title was registered in Akisama’s name in May 2021. The document, however, does not say who the land belonged to previously.

The land title document also says the land must be used only to build residences and that Akisama is not allowed to transfer, mortgage or charge it without the prior permission of the Federal Land Commission Committee.

A check with several industry experts — who described the parcel as well-hidden/secluded — showed that Lot 481838 is an amalgamation of several small pieces of land, including Lot 42522 that was previously zoned for infrastructure and utilities and Lot 56435 that was zoned as public space.

So, what is the likely gross development value (GDV) of the project?

Amy Wong Siew Fong, executive director (research and consultancy) at Knight Frank Malaysia, says based on the Kuala Lumpur City Plan, the allowable plot ratio for the transit-oriented development (TOD) Menara TM and its surroundings, is 1:4. But, she points out, Lot 481838 is not within a TOD zone. Incidentally, at 310m high, Menara TM is the fifth tallest building in Malaysia.

Assuming that a plot ratio of 1:4 is used, and considering the shape of Lot 481838 and the price of nearby serviced apartments, a back-of-the-envelope calculation would give the 254,244 sq ft project a GDV of around RM530 million.

As for the value of the land, ExaStrata Solutions Sdn Bhd CEO and chief real estate consultant Adzman Shah Mohd Ariffin puts the value of residential land in the area at around RM500 to RM600 psf, depending on the approved density. As commercial land with a plot ratio of 1:4, the parcel could fetch between RM800 and RM1,000 psf. This means Lot 481838 may be worth anything between RM127 million and RM153 million if residential or RM203 million to RM254 million if commercial.

“Akisama is an experienced, savvy developer that is known for providing quality within the affordable market segment. They do this via partnerships with landowners (which allows them to get land at attractive prices) and by managing their construction costs very tightly,” a real estate expert tells The Edge.

“This is one of the reasons their current project, Razak City, has achieved over 99% sales ahead of handover, despite offering more than 5,500 units in the scheme,” the expert adds.

According to Akisama Group’s website, the company was established in 1979 and started off as a construction and piling company. By 1996, the group had become known as a property developer in the Klang Valley. Tan Sri Bernard Chang Koon Wah and Datuk Freddy Tan Eng Beng are both listed as Akisama’s group managing director.

The Companies Commission of Malaysia data shows that the shareholders of Akisama Corp are Koon Wah (55%), Datuk Chang Kheng Hoe (20%), Datuk Chang Kheng Chia (20%) and Tan (5%). 

Tan is also the chairman of Bursa Malaysia-listed Global Oriental Bhd and holds a 17.9% stake in the company. 

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