Report: Putrajaya seeks bids for SRC International-linked land

KUALA LUMPUR (Jan 4): The Malaysian government is seeking bids for land owned by Gandingan Mentari Sdn Bhd, a wholly-owned subsidiary of SRC International Sdn Bhd, The Edge Malaysia reported this week.

Using documents sighted by the weekly, the report revealed that the government “hopes to be able to fetch close to three times the price Gandingan Mentari had paid for it about five years ago”.

The 14.8-acre tract is reportedly located about 1km from the upcoming Pavilion Bukit Jalil shopping centre (Bukit Jalil, Kuala Lumpur) and was purchased by Gandingan Mentari for RM65 million from SRC in 2015.

Numerous media reports have stated that Gandingan Mentari was “a front” for SRC’s corporate social responsibility arm, but was allegedly used to divert funds from SRC (previously a unit of 1Malaysia Development Bhd) to the bank account of former PM Datuk Seri Najib Razak. The SRC trial is still ongoing.

Based on an information memorandum (IM) sighted by business publication, it also reported that “the sale is being conducted via an expression of interest or EOI”.

JLL Property Services (Malaysia) Sdn Bhd has been hired as the exclusive EOI adviser for the deal.

A valuer who spoke to the weekly “values” the land at RM250 psf if it is free from encumbrances, in comparison to Valuation and Property Services Department’s (Napic) RM270 psf and RM100 psf Gandingan Mentari paid in 2015.

“It is leasehold development land with limited road frontage,” Exastrata Solutions Sdn Bhd CEO/chief real estate consultant Adzman Shah Mohd Ariffin said. He feels that the land could fetch between RM220 and RM250 psf.

Adzman Shah also “suggests” that the “best use” for the land is to “develop 70% of it into serviced apartments and 30% into commercial shoplots”.

“Based on the price range of RM220 to RM250 psf, the land should fetch between RM141 million and RM161 million,” wrote the weekly.

The leasehold parcel still has 92 years remaining on it. It is also reported that the land is partly occupied by squatters, while there are also Chinese and Hindu shrines, a car wash, hawkers and a car park on the tract.

Read the full report in this week’s The Edge Malaysia