EPF sells Wisma KFC to S’pore’s Royal Group – report

PETALING JAYA (Feb 2): The Employees Provident Fund (EPF) is believed to have sold the 22-storey Wisma KFC on Jalan Sultan Ismail in Kuala Lumpur for RM130 million to Singapore’s Royal Group, reported The Edge Malaysia.

Sources told the financial publication that the building – which occupies a half-acre plot, has a gross floor area of 342,145 sq ft and 268 parking bays – may be turned into a hotel.

Royal Group chairman Bobby Hiranandani did not reply to queries sent via WhatsApp from the weekly.

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When contacted to confirm the sale, EPF merely said the buying and selling of properties was part of its investment strategy.

“We are constantly keeping our options open and will thoroughly evaluate all available opportunities to ensure we maximise returns to our portfolio,” it said.

The transaction is believed to have been brokered by Zerin Properties. Its CEO Previndran Singhe declined to comment when contacted by the publication.

Longtime KL denizens would know the building, built in the 1990s, as Wisma Idris.

The building formerly housed the main offices of Kentucky Fried Chicken Holdings (M) Bhd. It was understood to have been left vacant for two years after QSR Brands (M) Holdings Bhd, which operates the KFC  and Pizza Hut fast-food chains, moved to Petaling Jaya.

In 2004, EPF bought the building from KFCH for RM90 million in 2004 and entered into a 10-year lease arrangement with a 7% net return per annum on the sale price.

What will Royal Group do with the building?

Experts polled by the paper said given the small size of the land, it is unlikely that Wisma KFC will be demolished and redeveloped.

Instead, it either be refurbished and maintained as an office building or turned into a hotel.

A real estate agent reckons the building would make a suitable home for a boutique hotel; a 10 minutes’ walk from the site is a Holiday Inn Express at Jalan Raja Chulan, formerly known as Menara ING.