KUALA LUMPUR (Aug 7): Mah Sing Group Bhd (KL:MAHSING) is buying the land upon which the Corus KLCC Hotel sits in Kuala Lumpur from Malayan United Industries Bhd (KL:MUIIND) for RM260 million.
Located on a 1.485-acre freehold parcel along Jalan Ampang and within a five-minute walk from the Petronas Twin Towers, the site will be redeveloped into premium freehold serviced apartments with an estimated gross development value of RM1.28 billion, according to a joint statement by both companies.
The announcement confirms an earlier report by The Edge that Malayan United Industries was divesting the property to a public-listed property developer, at an estimated price range of RM250 million to RM280 million.
Malayan United Industries’ latest annual report lists the property with a carry value of RM287.69 million, as per a revaluation exercise in August 2022.
Malayan United Industries chairman and CEO Andrew Khoo Boo Yeow said the sale forms part of the group’s asset rationalisation plan, adding that Mah Sing was selected as a partner capable of unlocking the site’s full potential.
“It is the right time for our group to divest the hotel property as part of our rationalisation strategy. We have found in Mah Sing the right organisation to lead the redevelopment of this project and to create an iconic, landmark project that will maximise the full potential of the land,” said Boo Yeow, son of the group’s founder Tan Sri Khoo Kay Peng.
“In view of our long 40 years’ association with this property starting from Ming Court Hotel opening in 1984 and subsequent rebranding to Corus KLCC, we envisage that this redevelopment will enhance the KLCC skyline and add to the current vibrancy of this prestigious locality,” he added.
The Khoo family holds a 43.26% stake in Malayan United Industries.
For Mah Sing, this is the company’s second land acquisition so far this year.
Mah Sing’s founder and group managing director Tan Sri Leong Hoy Kum said the acquisition aligns with the company’s focus of unlocking value in prime urban locations with strong demand fundamentals.
“With its rare freehold status, unrivalled connectivity, and prime city-centre location, we believe the project will have strong international appeal and deliver long-term value to our homebuyers and stakeholders,” Leong commented.
According to Mah Sing, the project is expected to contribute to urban regeneration, job opportunities, stimulate economic activity and support the goals of the Kuala Lumpur Local Plan 2040, which emphasises the development of compact, accessible and liveable neighbourhoods.
The Corus KLCC Hotel sale adds to Malayan United Industries’ recent efforts to monetise assets.
Last December, its listed subsidiary MUI Properties Bhd (KL:MUIPROP) sold a 389.7-acre parcel of land near Port Dickson to Gamuda Bhd (KL:GAMUDA) via a 60:40 joint venture with Chin Teck Plantations Bhd (KL:CHINTEK) for RM424 million in cash. Malayan United Industries holds a 60% stake in MUI Properties.
Other asset sales by Malayan United Industries over the years have included Pan Malaysia Holdings Bhd (PM Holdings), which owns a stockbroking and asset management business, as well as a holiday resort in Port Dickson.
The stockbroking and asset management business was sold to NewParadigm Capital Ventures Sdn Bhd for RM90 million in November 2023, while the listed entity PM Holdings was sold to the Lim brothers of the Exsim group for RM36.7 million in March 2024.
The listed company was later renamed to Exsim Hospitality Bhd (KL:EXSIMHB) by the Lim brothers.
Besides the Corus KLCC Hotel, Malayan United Industries’ annual report shows it also owns the Corus Hotel Hyde Park in London with a carry value of RM932.54 million.
Besides real estates, Malayan United Industries owns and operates the Metrojaya department store and its 44.7%-owned unit Pan Malaysia Corp Bhd (KL:PMCORP), as well as the A&W franchise in Malaysia.
The group has been loss-making for more than a decade. Its net debt amounted to RM714.28 million as at end-March.
For the nine months ended March 31, 2025 (9MFY2025), Malayan United Industries logged a net loss of RM58.33 million versus RM32.71 million in the same period a year earlier. Revenue was up 10.9% year-on-year to RM369.09 million from RM332.7 million previously, as gains in the property development and fast-food chain segments offset declines in retail and hotel operations.
Malayan United Industries’ shares were suspended on Thursday. It last traded at six sen on Wednesday, translating into a market capitalisation of RM194 million.
At noon market break, Mah Sing was traded two sen or 1.68% higher at RM1.21, giving the group a market capitalisation of RM3.1 billion.