PROPERTY NEWS: Hap Seng acquired KL Metropolis land, expected to generate a GDV of RM8.7 billion

Key takeaway: 

Hap Seng Consolidated Bhd aims to establish a mixed-use project in KL Metropolis on Jalan Duta in Kuala Lumpur with an RM8.7 billion gross development value (GDV).

Through its wholly-owned subsidiary Sierra Positive Sdn Bhd, it has reached an agreement with Naza TTDI Sdn Bhd's unit TTDI KL Metropolis Sdn Bhd (TLKM) to purchase 6.2 hectares of unoccupied commercial land known as Met 3, Plot 7A for RM868.8 million.

Hap Seng said the Met 3 land would be purchased with internally produced money and bank borrowings in a filing with the Bursa Malaysia yesterday.

The transaction is expected to be completed within seven months, according to Hap Seng, and would strengthen the group's property development position in KL Metropolis.

Naza Corp Holdings Sdn Bhd controls 80% of Naza TTDI, the master planner for the RM20 billion KL Metropolis, which spans 31 hectares.

In January 2016, Hap Seng and TLKM inked a development rights agreement for KL Midtown on a 3.62ha plot in KL Metropolis.

A retail platform, luxury residences, and a hotel will be part of the KL Midtown development. It has a total GDV of RM3.8 billion.

After collaborating with TLKM for four years, Hap Seng was able to introduce the global hotel brand Hyatt Regency to KL Midtown.

KL Midtown Sdn Bhd, a 70:30 joint venture between Hap Seng and TLKM, is building a five-star hotel. In 2024, it is expected to open. There will be 450 rooms, as well as a market café, restaurant, bar, club, outdoor pool, fitness center, and meeting rooms.

According to Hap Seng, developing a mixed-use project on the Met 3 area will cost RM7 billion.

The company is optimistic that the land's connectivity and accessibility will enhance future project launches and generate long-term revenue and profit for its property development industry.

The Met 3 site is near the Malaysia International Trade and Exposition Centre (MITEC), the country's largest exhibition center, which opened in 2017.

"KL Metropolis is flanked by the prestigious townships of Damansara Heights, Sri Hartamas, Mont Kiara, and Bangsar, making it one of the most sought-after destinations in the Klang Valley."

"KL Metropolis is home to Malaysia's largest trade and exhibition facility, and different measures to expand connectivity within and around the city are already in the works," it stated.

The proposed acquisition is subject to market demand and conditions, government permits, a labor shortage in the construction industry, fluctuating building material prices, and any unforeseen delays caused by the Covid-19 epidemic.

©️ May, 2022, Hapsengland.com