KWAP buys KL land for RM140 mil, with potential GDV of RM780 mil

KUALA LUMPUR (Jan 28): Kumpulan Wang Persaraan (Diperbadankan) (KWAP) has acquired a piece of land from the federal government in Persiaran Stonor here for RM140 million or RM2,578 per sq ft (psf).

In a statement yesterday, KWAP chief executive officer Wan Kamaruzaman Wan Ahmad (pictured) said the land is projected to generate good long-term returns for the pension fund, with a projected gross development value (GDV) of RM780 million.

Spanning 5,048 sq m, the dual-frontage land is located strategically within a short walking distance from the Kuala Lumpur city centre, light rail transit stations and future mass rapid transit stations.

It is also located close to the Prince Court Medical Centre.

KWAP said the acquisition marks its second purchase of land and its third property in the country.

The latest addition brings the number of property owned and co-owned by KWAP to 13. KWAP currently has seven properties in Australia, three properties in the UK and three properties in Malaysia.

CH Williams Talhar & Wong (WTW) managing director Foo Gee Jen deemed KWAP to have received fair market value for the piece of land.

He said the purchase price is reflective of the market price in the area based on several previous land transactions.

“This price is quite consistent with the market rate around the area,” Foo told The Edge Financial Daily.

In April last year, Malaysian Resources Corp Bhd acquired a 1.87-acre (0.76ha) piece of land belonging to the German Embassy in Jalan Kia Peng here for RM259.16 million or RM3,188 psf. The price was about 6% higher than the market value of the land, the company said, citing appraisals by WTW and Raine & Horne International Zaki + Partners Sdn Bhd.

Earlier in 2014, KSK Group Bhd paid RM568 million or RM3,573 psf for a 1.6ha parcel of land in Jalan Conlay here.

Do not ask your uncle about the value of your home. Click here at The Edge Reference Price to find out.

This article first appeared in The Edge Financial Daily, on Jan 28, 2016. Subscribe to The Edge Financial Daily here.