Malaysia reported quite a few property transactions during the course of last week involving a pension fund and a couple of realty players.
KWAP buys federal govt land for $33.74m
Malaysia pension fund Kumpulan Wang Persaraan (Diperbadankan) (KWAP) has acquired a development land from the federal government on Persiaran Stonor in Kuala Lumpur city for MYR140 million ($33.74 million), translating to MYR2,578 per sq ft.
In a statement, KWAP chief executive officer Wan Kamaruzaman Wan Ahmad said, the land is projected to generate good long-term returns for the pension fund, with a projected gross development value of MYR780 million.
Spanning 5,048 sq m (54,336 sq ft), the dual frontage land is located strategically within a short walking distance to the city centre, light rail transit stations, and future mass rapid transit stations, and is a stone’s throw to the Prince Court Medical Centre.
KWAP owns and co-owns 13 properties, seven of which are in Australia, three in the United Kingdom and three properties in Malaysia. The acquisition is the fund’s second local land purchase.
Tropicana sells Dijaya Plaza for $33.74m
The property developer said, the net proceeds of MYR51.6 million ($12.43 million) will be used for working capital and/or to repay bank borrowings of Tropicana Group.
“Based on Tropicana’s unaudited results as at September 30, 2015, the group’s total borrowings will be reduced from MYR1.75 billion to RM1.66 billion, resulting in further improvements in the net gearing position of Tropicana,” it said, in a statement.
Tropicana added that the asset sale comprises a piece of freehold land measuring 3,674 sq m, together with an en bloc 19-storeyed office tower with two levels of basement car park consisting of 322 parking bays.
In a filing with Bursa Malaysia, Tropicana said, the original cost of investment was RM110.62 million. The building’s net book value stood at MYR130 million as at December 31, 2014.
The building, with a total net lettable area of 156,488 sq ft, is currently 70 per cent occupied.
JAG to buy land for $2.38m
JAG Bhd’s wholly owned subsidiary JAG Land Sdn Bhd has entered into a sale and purchase agreement with Chewway Heavy Machinery Sdn Bhd to purchase a parcel of freehold land in Klang measuring 13,489.5 sq m (3.3 acres) for MYR9.87 million ($2.38 million).
In a filing with Bursa Malaysia, JAG said, the proposed acquisition of land is for property investment and/or development purposes.
“The land has development potential and commercial value in view of demographic profile and its shape, and is near to and on the same row as the Sentosa Specialist Hospital and NSK wholesale market,” the group said in its announcement, noting that it is expected to enhance the future earnings of JAG and its subsidiaries.