Wednesday, 11 January 2017

(The Star) Kontena Nasional to sell PJ land

Property developers showing interest in the land
PETALING JAYA: Kontena Nasional Bhd, a one-stop logistics solutions provider, is disposing of two plots of leasehold land in Bandar Sunway, Petaling Jaya, with the tender already receiving interest from well-known property developers.
According to sources, the interested parties include the likes of Mah Sing Group Bhd, IJM Group, Malaysian Resources Corp Bhd (MRCB) and United Malayan Land Bhd (UM Land).
“We have received calls from a number of interested parties, from big and small companies,” said the source.
According to Kontena Nasional’s website, the company is disposing of two contiguous parcels of redevelopment land totalling almost 19 acres.
The plots of land, measuring 5.399 acres and 13.501 acres respectively, have a leasehold interest for 99 years, expiring on Aug 8, 2103.
“The land comprises two buildings and two warehouses,” said the source, adding that the reason for the sale of the plots of land is because Kontena Nasional will be relocating its headquarters to Port Klang.
A briefing on the tender will be held on Jan 12. Kontena Nasional is an indirect subsidiary of utilities and infrastructure company MMC Corp Bhd.
Wong: ‘The market value for land there is around RM300 per sq ft.’
Wong: ‘The market value for land there is around RM300 per sq ft.’ 
According to VPC Alliance director and chartered surveyor James Wong, the prime land fronting the Federal Highway has been zoned for commercial purposes.
“The market value for land there is around RM300 per sq ft,” he said, adding that there is a shortage of prime commercial land in Petaling Jaya.
According to PPC International Sdn Bhd managing director Datuk Siders Sittampalam, two plots of land within the area were transacted at RM386 per sq ft and RM440 per sq ft in 2014.
“Today, the land there may be transacted at RM450 per sq ft,” he said.
The expression of interest by big-name players is a clear sign that developers are actively looking for plots of land to develop in spite of the current property glut.
With most developers and industry experts expecting a flat, unexciting year for the property sector, it is anticipated that most players will be focusing on mass-market or affordable housing projects in 2017.
As of October, more than 12,000 units of 1Malaysia People’s Housing Programme or PR1MA housing worth RM3.3bil had been booked, while 85,000 units are at various stages of approval.
Due to the challenging market condition, Mah Sing Group revised its 2016 full-year sales target from RM2.3bil to RM1.8bil. Meanwhile, IJM Corp is reported to be looking to launch more affordably priced homes ranging between RM350,000 and RM750,000.
As for MRCB, the potential new development for a transport-oriented development in Bandar Malaysia’s phase one is seen as positive for the company in 2017.
Hong Leong Investment Bank (HLIB) Research in a recent report pointed out that with the multitude of rejuvenation projects taking place currently, several large-scale catalytic developments have emerged.
These, it said, include the Tun Razak Exchange, Warisan Merdeka, Bukit Bintang City Centre, Bandar Malaysia, Kwasa Damansara and Cyberjaya City Centre.

Collectively, these six catalytic developments have a gross development value of at least RM275bil over 3,355 acres, according to HLIB Research.