This article first appeared in The Edge Malaysia Weekly on October 7, 2024 - October 13, 2024
SELANGOR Properties Sdn Bhd’s (SPB) prime Jalan Semantan land has been sold to BRDB Developments Sdn Bhd (BRDB), according to an industry source.
The long-vacant 16-storey Wisma Damansara, which was built in 1970, sits on part of that land situated in Damansara Heights, Kuala Lumpur.
When contacted by The Edge, Knight Frank group executive chairman Sarkunan Subramaniam confirmed that the nine-acre parcel “has been sold but waiting for completion” of the sale. Knight Frank was hired as the exclusive marketing agent for the plot, as reported by The Edge in April last year.
The site has both commercial and residential titles, offering prime development opportunities with a plot ratio of 1:6.5. Industry experts in the earlier report estimated that the sale of the 392,040 sq ft land would fetch between RM320 million and RM470 million, or above RM800 psf.
While the final sale price is unknown at press time, the industry source says it was “substantial, but not as high as expected”.
The land, which is close to the Semantan MRT and located in Kuala Lumpur’s Transit Planning Zone, is subject to height restrictions because of its proximity to Istana Negara.
The Edge understands, however, that only part of the nine-acre site will be affected by the restrictions, and a section fronting Jalan Semantan could be the site of a highrise building.
According to another industry source, SPB is planning to sell another plot of land just minutes away from the Wisma Damansara plot. This parcel is next to Menara Milenium, a building which SPB plans to keep for recurring income, together with The Stories of Taman Tunku, and The Five@KPD (formerly Kompleks Pejabat Damansara with potential for redevelopment in the future).
Menara Milenium, The Stories of Taman Tunku, as well as the exclusive 163-unit AIRA Residence in Jalan Batai are among SPB’s notable projects.
Back to the land on which Wisma Damansara sits, SPB had initially planned to use the site for a mixed-use development with retail, commercial and residential elements, according to the property developer’s 2018 Annual Report. The plan was shelved when the government froze the development of luxury properties priced above RM1 million in November 2017, owing to an oversupply of commercial properties, including retail and serviced apartments.
Founded by the late Puan Sri Datin Chook Yew Wen, SPB was once a publicly listed entity. Debuting on the Main Market of the Kuala Lumpur Stock Exchange in 1963, the low-profile developer was taken private in June 2019 by the Wen family. The family, which controlled 68.23% of the company at the time, forked out RM687.6 million to buy out minority shareholders after having had to raise its offer price twice.
For its financial year ended Oct 31, 2023 (FY2023), SPB made a profit after tax of RM7 million.
BRDB, formerly known as Bandar Raya Developments Bhd, was also a publicly listed company. It made its Main Market debut in 1968, and was taken private 44 years later in October 2012. It is now fully owned by A Khan Sdn Bhd.
The group is known for its high-end properties, such as Bangsar Shopping Complex, Menara BRDB, The Troika, One Eleven Menerung and Serai Bukit Bandaraya. It made a profit after tax of RM60.757 million for FY2023 ended Dec 31, 2023.
The developer has several launches lined up this year: Eden in Jalan Gallagher in Taman Duta, Kuala Lumpur, which has an estimated gross development value (GDV) of RM1.2 billion; and the 25.25-acre Federal Avenue fronting the Federal Highway, which has an estimated GDV of RM2.6 billion.
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