Report: Boustead sells prime KL land for RM138m

KUALA LUMPUR (July 11): Boustead Properties “has inked a deal” to sell a 2.93-acre parcel in Jalan Cochrane (near MyTown shopping centre) at RM138 million to Binastra Land Sdn Bhd, reported The Edge Malaysia.

“We can confirm that the parcel of land known as Lot 20005, comprising 2.93 acres located opposite MyTown shopping centre, is in the process of being sold. The sale and purchase agreement was signed on June 12, 2020, and the deposit of 10% has been secured,” a Boustead Properties spokesperson told the weekly.

Binastra Land CEO and managing director Datuk Seri Michael Tan told the business publication “that the deal was done at RM138 million” which works out to RM1,081 psf.

“Prime land does not come cheap,” Tan added. He also revealed that his company plans to build a hotel and serviced apartments, with a small office component, on the land – “The development will complement the MyTown development”.

Binastra Land is currently developing the RM1 billion GDV Trion@KL on the former site of the Volkswagen showroom in Sungei Besi and a RM500 million GDV project called CitiZen 2 along Old Klang Road.

Boustead also said that: “Given the current economic environment, we are of the view that the sale consideration is fair and will contribute positively to the group’s cash flow.”

“It is a good sell for the owner [Boustead] as it managed to sell at about RM1,000 psf, especially in this market,” a valuer said. The same valuer “pegs” the land value in the area at between RM700 and RM800 psf.

According to the same report, the deal was brokered by Rahim & Co International Sdn Bhd. Rahim & Co CEO Siva Shanker described the purchase “as significant”, demonstrating that “in spite of the pandemic and the negative impact of the lockdown, savvy developers and investors will still put money into prime assets”.

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