KUALA LUMPUR: Petroliam Nasional Bhd's property arm KLCC (Holdings) Sdn Bhd may be paying around RM700-RM1,000 per square feet (psf) for the 197-hectare Bandar Malaysia here, a property expert suggests.
This is much lower than the land in Tun Razak Exchange and Kuala Lumpur City Centre which generally cost more than RM2,000 psft, according to CCO & Associates (KL) Sdn Bhd executive director Chan Wai Seen.
"Some land with high plot ratio (at TRX and KLCC) can go above RM4,000 psft," Chan told Business Times, when commenting on KLCC Holdings' acquisition for the Bandar Malaysia land.
KLCC Holdings on Monday announced that it had signed the sale and purchase agreement with Bandar Malaysia Sdn Bhd (BMSB) and Bandar Malaysia Land Sdn Bhd on Oct 4 this year to take over the land for an undisclosed amount.
The planned development of the land, which is located at the site of the former Royal Malaysian Air Force base on Jalan Sungai Besi, will add to the country's most iconic developments namely Kuala Lumpur City Centre and Putrajaya under KLCC Holdings.
KLCC Holdings said the large-scale development project is set to unfold over a long-term period with an emphasis on commercial viability.
It will be developed into an international business hub and a livable and inclusive city for the community.
KLCC Holdings is the master developer of the 40ha Kuala Lumpur City Centre area which is home to the 452-metre Petronas Twin Towers.
It also manages the 20ha KLCC Park.
Over the weekend, a business weekly reported that the Finance Ministry was in the midst of selling Bandar Malaysia to KLCC Property Holdings Bhd, a listed unit of Petronas, for about RM12 billion.
KLCC Property, earlier today, denied the report, saying that it was not a party to the deal.
KLCC Holdings is the holding firm for the KLCC Group.
It owns 65 per cent of the shares in the KLCC Stapled Group, which includes KLCC Property and the KLCC Real Estate Investment Trust.
The announcement by KLCC Holdings also came a little over a week after BMSB terminated its theme park deal with Singapore-listed Sim Leisure Group Ltd.
In November 2023, Sim Leisure announced it would be opening an adventure park with 70 games and activities, as well as 200 themed accommodation for guests in Bandar Malaysia.
In a filing with the Singapore stock exchange, Sim Leisure said its subsidiary, Sim Leisure Escape, received a notice of termination on Dec 16 from BMSB.
Meanwhile, Chan said it will be of great advantage to the overall development of Bandar Malaysia if the master developer is able to revive the Kuala Lumpur-Singapore high speed rail (HSR) project.
"(Bandar Malaysia) had attracted a lot of interests before because the key attractions were the HSR between Singapore and KL. For the initial stage, it is crucial for KLCC Holdings to secure high-impact tenants for the first development components.
"Bandar Malaysia spans a vast development area of 486 acres. To ensure seamless connectivity between its various components, the master plan can incorporate pedestrian walkways, train systems, and other efficient transportation solutions.
"Enhanced connectivity will reduce reliance on cars and promote economic activities across the development," he added.