KUALA LUMPUR (Aug 27): 1MK Office Sdn Bhd, the owner of Wisma Mont Kiara in Mont’Kiara, Kuala Lumpur, is divesting the asset for RM130 million. The office tower is currently 98% occupied with only two vacant units.
Built in 2010, Wisma Mont Kiara has a net lettable area of 181,992 sq ft and a gross floor area of 241,682 sq ft. The freehold, strata-titled office tower has 16 storeys that sit atop the 4-storey 1 Mont Kiara Mall. It has access to 1,385 parking bays and a direct connection to the upcoming MRT station. The current rental rates range from RM4.50 to RM5.50 psf.
1MK Office acquired the office tower in 2017 for RM122 million.
“The company’s strategy was to hold and improve the asset value for five to six years, then to reinvest in another sector. As the current market has improved, we think now is the right time to sell the building because the occupancy rate has improved significantly,” said 1MK Office project manager Sultan Allahham in the media briefing held today.
He added that this divestment forms part of the company’s broader global realignment strategy, aimed at redeploying capital into high-growth sectors such as logistics, healthcare and infrastructure.
The exclusive marketing agent to handle this divestment exercise is Rahim & Co.
In the media briefing, Rahim & Co CEO of estate agency Siva Shanker highlighted that the residential properties currently dominate the market, making up 62% of all transactions. He explained that this reflects the limited supply of commercial assets available for sale, which in turn underscores the rising importance of alternative investment classes to the investors, such as commercial properties.
When talking about the future of the property market, he stated that the property market might see more gradual growth compared to the steep highs that have been observed from 2021 to 2024.
“Malaysia should stop being addicted to super-high growth; this double-digit growth is not sustainable. We should aim for single-digit growth which is slow and sustainable over a longer period of time because when the market goes up slowly, it will come down slowly, giving us a better chance at recovery,” said Siva.