Faber Towers up for sale

PETALING JAYA (Dec 30): OSK Holdings Bhd has put Faber Towers in Taman Desa, Kuala Lumpur, on the market as it seeks to monetise some of its assets, reported The Edge.

Valuers who spoke to the publication reckon that the freehold, strata-titled retail-and-office property may fetch between RM230 million and RM250 million.

“For OSK Group, we are exploring the option to monetise some of our assets. If the right opportunity comes along, the sale proceeds would help strengthen our foothold in the property development business,” said an OSK Holdings spokesperson.

The property comprises two 16-storey towers atop a three-storey retail podium, with a total 483,175 sq ft of net lettable area (NLA), of which 406,440 sq ft is office and the remaining 76,735 sq ft is retail.

As at Dec 21, the entire property is 70.18% occupied, with 96.1% of its retail space taken up while 65.3% of the office space was leased out.

Faber Towers also contains 602 basement car parking bays and 97 outdoor bays.

Canggih Pesaka Sdn Bhd owns 98.3% of the building, with the remainder being privately held.

The company in turn is equally owned by OSK Holdings subsidiary PJ Development Holdings Bhd, and Datuk Wong Nam Loong and persons linked to him.

Wong is an independent non-executive director of Am ARA REIT Managers Sdn Bhd, the manager of AmFirst Real Estate Investment Trust.

According to an executive summary and an information memorandum (IM) obtained by The Edge, the 31-year-old building is being sold by way of expression of interest, which differs from a sale by tender as it is generally non-binding.

Savills Malaysia has been appointed the exclusive marketing agent of this property.

“Given the escalating land values and construction costs, this offering is a rare opportunity to secure office space in Kuala Lumpur at a near-replacement cost,” the IM said.

The IM also said the building is undergoing further upgrades, which include the installation of a new higher-capacity chiller in 1Q18, and better security features in all 12 lifts by 3Q18.