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Friday, January 25, 2008

Platinum Park set to sparkle in KLCC area

PLATINUM Park’s Grade A office towers are expected to fill the demand for premium office spaces in the KLCC belt with its attractive pricing as a pull-factor.

This is evident with the recent enbloc purchase of its 50-storey office tower (pix) by the Federal Land Development Authority (Felda).

Felda signed a sale and purchase agreement with Platinum Park’s developer TTDI Development Sdn Bhd for RM640.7 million, or an average of RM930psf.

To be named Menara Felda, the office tower will have a nett lettable area of 689,000 sq ft, a 1,500-capacity banquet hall and a variety of other facilities.

Menara Felda will be the tallest tower among Platinum Park’s seven iconic towers that essentially comprise three office towers, three high-end condo towers and a service- apartment tower.

While, at RM930 psf, TTDI Development’s deal doesn’t exactly match the RM1,120 psf benchmark deal set by Glomac Bhd, which sold its Glomac Tower to Kuwait Finance House late last year for RM577 million, the Felda deal is certainly higher than Mah Sing Bhd’s enbloc sale of East Wing of TTDI DEVELOPMENT The Icon along Jalan Tun Razak for an average of RM899 psf late last year. That sale was valued at RM237 million.

Some investors have approached Felda with an offer of RM1,250psf disclosed by Deputy Prime Minister Datuk Seri Najib Tun Razak after the ground breaking ceremony on Jan 22. “We have been approached with offers for RM1,250 psf and if we sold it today, we would make a profit of RM220 million,” said Najib.

Menara Felda is located in Platinum Park’s 9.1-acre tract.

When contacted, several real estate practitioners commented that the transaction was a fair deal for buyer and seller.

Zerin Properties Sdn Bhd’s CEO Previndran Singhe said: “The pricing was fair, in view of the going rates for KLCC property”. “The pricing will certainly put a premium on the KLCC-based Grade A office space,” added Previndran.

“Platinum Park would redefine the KLCC area as a prestigious address and a world-class real estate development.

“If the product is good, then its going to be a walk in the park for TTDI Development as its offerings would be snapped up by buyers,” said Previndran.

Platinum Park is the secondlargest real estate development in KLCC’s vicinity after the KLCC project with a gross development value (GDV) of RM3.5 billion.

“We are also holding strategic talks with two other parties who are keen on purchasing Platinum Park office towers enbloc,” said TTDI Development group managing director Datuk Johan Ariffin.

Johan said a “necklace” of niche lifestyle retail outlets featuring products and services with international appeal never seen before in KL, would complement the development of Platinum Park.

He said the condominiums will be noted for their space, measuring between 2,200 sq ft and a whopping 13,000 sq ft, all priced from RM2,000 to RM2,500 psf onwards.

The developer claims Platinum Park, to be developed over the next eight years along the intersection of Jalan Stonor, Jalan Binjai and Lorong Kuda, will be of international standards on par with Hyde Park of London, Central Plaza in New York, Rodeo Drive in Los Angeles and Tokyo’s Roppongi.

“Platinum Park will have a gross floor area of 3.5 million sq ft, and will be the most accessible in the KLCC area as there are six roads leading in and out of the development site, and we have also submitted a traffic plan for City Hall’s approval,” said Johan.

DTZ Debenham Tie Lung (M) Sdn Bhd executive director Brian Koh said there have been no new project launches in the KLCC area over the past six months and news of Platinum Park’s launch will excite market sentiment.

“Platinum Park will fill the need for Grade A offices and high-end condo demand in the KLCC area. We expect the project to augment the market demand for KLCC area properties,” said Koh.

“The enbloc sale of Menara Felda also puts the project on a firm ground,” he added.

Henry Butcher Malaysia Sdn Bhd COO Tang Chee Meng said the pricing of Platinum Park condo’s over the RM2,000 psf mark will eventually push up prices in the KLCC area to higher levels.

“Despite the economic slow down in the US, we in Malaysia are attracting lots of foreign funds, especially from Korea and the Middle East,” said Tang.

“And since Platinum Park is a notably huge project, it will set the benchmark for high-end residential prices in KLCC. It is in a favorable position in the prevailing market condition,” he added.

Another consultant, Kenrich Realty’s Alfred Chin said buyers would now have more choice and options in selecting KLCC properties.

“The more choices, the better they are for investors. And with Platinum’s launch, I believe investors, especially foreigners, will get that — choice,” said Chin.

By theSun (by Tim Leonard)

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