This article first appeared in The Edge Malaysia Weekly on June 1, 2026 - June 7, 2026

PELABURAN Hartanah Bhd (PHB) is seeking buyers for CP Tower in Petaling Jaya through an expression of interest (EoI) exercise, even as Malaysia’s office market continues to grapple with elevated vacancies and shifting tenant demand.

The 22-storey freehold office tower in Phileo Damansara, Section 16, has a net lettable area (NLA) of 288,058 sq ft and 668 parking bays. Market estimates value the asset at between RM158 million and 

RM187 million, or roughly RM550 to RM650 per sq ft (psf). The EoI closes on July 13.

Sources tell The Edge that Perak-based developer Setia Awan Holdings Sdn Bhd is among parties interested in the property. Several offers have already been submitted, with an announcement expected after the exercise concludes, they say.

PHB did not respond to requests for comment.

Companies Commission of Malaysia (SSM) filings show Setia Awan is controlled by the Doh family. Lagenda Properties Bhd (KL:LAGENDA) managing director and major shareholder Datuk Jimmy Doh Jee Ming owns 80% of the company, while Mercury Industries Bhd (KL:MERCURY) executive director Datuk Marcus Doh Tee Leong holds 10%. The remaining stake is owned by Datuk Doh Jee Chai.

The developer, which began operations in Perak, has expanded to Kuala Lumpur and Melaka. Its office is currently located in Phileo Damansara. Among its key projects is the 6.85-acre Astrum Ampang development in KL, completed last year, while its upcoming Avenue F neighbourhood mall in the Bukit Ampang Permai township in Selangor is slated for completion in late 2027.

An agent tells The Edge that CP Tower was previously associated with Siemens Malaysia, which had occupied the building for years before relocating its headquarters to The MET Corporate Towers in KL in April last year.

The proposed sale comes amid continued weakness in PJ’s office sector, where occupancy rates remain under pressure due to oversupply and cautious leasing activity.

Raine & Horne International Zaki + Partners executive director Lim Lian Hong says occupancy rates in the area currently hover between 70% and 74%, while capital values have remained largely stagnant because of limited rental growth and negative rental reversions in older office stock.

“Capital values remain flat, reflecting limited rental growth and negative reversions in older stock. The outlook for 2026 points to a tenant-driven market, with demand concentrated in newer, ESG (environmental, social and governance)-compliant Grade A offices and integrated developments,” he says.

“Hybrid work trends and rising business costs are expected to keep leasing decisions conservative, while landlords of ageing buildings may need to invest in upgrades or repositioning to stay competitive.”

Lim estimates CP Tower could command about RM650 psf, citing CapitaLand Malaysia Trust’s (KL:CLMT) 2023 disposal of the 3 Damansara office tower in PJ to Lagenda Properties for RM52 million, or about RM513 psf.

The 12-storey tower, with an NLA of 101,246 sq ft, forms part of the broader 3 Damansara integrated development, which includes a retail mall, parking facilities and a residential component.

Alan Wong, group leader at The Roof Realty Sdn Bhd, describes CP Tower as a Grade A office asset with good accessibility and stable occupancy levels, ranging between 75% and 95%.

The property is located near the former Eastin Hotel KL, which was sold last year for RM200 million to a private entity linked to former investment banker Datuk Lim Kheng Yew, founder of KYM Holdings Bhd (KL:KYM). The hotel has since reopened as Petaling Jaya Marriott Hotel under the ownership of TSM Global Bhd, a diversified group with interests in the automotive and real estate industries, following a RM100 million refurbishment expected to be concluded by year end.

CP Tower was developed by CP Group, founded by prominent businessman Datuk Tan Chew Piau.  PHB subsequently acquired it from CIMB-Mapletree Management Sdn Bhd. According to its website, PHB’s portfolio includes office assets such as Wisma Consplant, Menara BT, PJ33, Menara 1 Dutamas, Dataran PHB and Quill 18, alongside retail properties such as NU Empire, NU Sentral Shopping Centre, Mayang Mall and Lotus’s Setia Alam.

As a wholly-owned subsidiary of Yayasan Pelaburan Bumiputra, PHB invests in and develops strategic real estate assets across Malaysia.

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