BNM RM2b land an extension of Lake Gardens?

PETALING JAYA (Jan 6): Where exactly is the location of the tract Bank Negara Malaysia (BNM) is buying for RM2 billion?

The landing, sprawling 55.79 acres or the equivalent of 32 football pitches, would will be used to relocate the Global Islamic Finance University (INCEIF) and the International Shari’ah Research Academy for Islamic Finance, and will be used for future development of education and training facilities that will focus on enhancing the technical capabilities of the talents in the financial services industry.

But where exactly is this? According to consultants who spoke to The Edge weekly, the land could be an extension of Kuala Lumpur’s popular Lake Gardens.

The central bank has described the 55.79-acre as “contiguous to the Bank’s Sasana Kijang complex". This, according to some industry experts, points to its location being a green lung along Jalan Sultan Salahuddin and Jalan Tun Ismail.

The site is also described by BNM as being close to the new Asia School of Business (a collaboration with the Massachusetts Institute of Technology) complex and the financial industry’s Financial Industry Training Centre which is currently under construction.

The price paid for the land – 2,430,212.4 sq ft – works out to RM823 psf, which some industry experts say is quite high.

A valuer who spoke to The Edge said the land should be priced at closer to RM500 psf, as it is a sizeable parcel.

He compared it with the Bukit Bintang City Centre site which formerly housed Pudu Jail which is 19.4 acres, and the TRX site which is 70 acres.

Another valuer pointed out that land with infrastructure is available in Cyberjaya at RM200 psf, while a fellow professional highlighted the fact that the land would be used for institutional purposes and not for commercial profit.

However, a valuer contacted by The Edge said while RM823 psf is a fair market price compared with another transaction done by the government nearby, it is considered on the high side.

A year ago, the Ministry of Finance had sold a 19.4-acre parcel near Istana Negara that fronts Jalan Duta to Jakel Land Sdn Bhd for RM646 million or RM774.90 psf.

Jakel Land is equally owned by Symphony Life Bhd, Permodalan Nasional Bhd, and Jbiz Development Sdn Bhd.

The land is currently zoned as “public open space”, according to a consultant contacted by The Edge who looked up the details of the parcels.

This means the land would have to be re-gazetted for institutional use.

The central bank had said the price it is paying is subject to a final survey of the area involved.