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Friday, 16 June 2017

(The Edge Financial Daily) CWK Group banks on MRT for Wisma Aman Elite in Cheras

BY SHAWN NG

KUALA LUMPUR: The upcoming phase 2 of the mass rapid transit (MRT) Sungai Buloh-Kajang Line has prompted CWK Group to kick-start its commercial project known as Wisma Aman Elite in Cheras, Kuala Lumpur.

Located on a 1.5-acre of land along Jalan Desa Aman 1, the freehold project has a gross development value of RM140 million. It is being undertaken by a subsidiary of CWK Group — CL Elite Developer Sdn Bhd.

The land was previously rented out to a used-car dealer before the company decided that it is time to develop the site, CWK Group and CL Elite Developer director James Chan told TheEdgeProperty.com.

The oil palm plantation player, who also has a property development business, believes now is the best time to develop the land as the upcoming phase 2 of the MRT Sungai Buloh-Kajang Line is poised to have a positive impact on the surrounding area.

When completed, Wisma Aman Elite will comprise three levels of basement carpark, 14 blocks of 5-storey shopoffices and a 13-storey office tower, said Chan.

The 5-storey shopoffice units have a gross floor area of between 9,935.2 sq ft and 13,153.6 sq ft while the 13-storey office tower will have a total gross floor area of 85,401.5 sq ft.

“Our principal business is in the plantation sector but we have also diversified into the property development segment with some projects, such as Sri Kasturina condominium in Bangsar, Strawberry Park Resort at Cameron Highlands and Taman Desa Aman.

“The reason why we wanted to develop this land is because of the upcoming Taman Mutiara MRT station, which is only about 400m away from our development,” Chan explained.

The Taman Mutiara MRT station is one of the stations along the 51km MRT Sungai Buloh-Kajang Line, which will be fully operational by next month. Phase 1 of the MRT Line, which covers the stations from Sungai Buloh to Semantan, began operations in December last year.

CL Elite Developer is selling the en-bloc shopoffices from RM5.98 million onwards. As for the office tower, the developer is looking at renting the building out at a rate of about RM2.50 psf.

“We are going to lease it out to potential companies who will need the whole building — maybe colleges and businesses that require large spaces. There are a few parties who are considering taking up the building,” he shared.

He noted that one of the key selling points of the project is its strategic location. “All shopoffices and the office tower are facing the main road, which offers good exposure to the future businesses that take up shop here. We are targeting professional firms, financial institutions and business owners who want to have that kind of premium frontage,” he said.

“In addition, there will be 211 covered car park lots available in the project, which is something rare in the area,” he added.

Recently launched on May 19, five of the 14 shopoffice units have been sold so far. Due to the encouraging response in a slow market, Chan said the developer is targeting to sell all the remaining units over the next 12 months.

“We still own some pockets of land in Desa Aman and Jalan Yap Kwan Seng, but we are conservative on the business and want to ensure the risk is minimal and manageable before we start developing these lands,” said Chan.