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Monday, July 21, 2008

I-Berhad in talks on en bloc sale of The Peak@KLCC

I-BERHAD, the developer of luxury serviced residence The Peak@KLCC, is in talks with several parties for a possible en bloc sale for this property.

The Peak, with an estimated gross development value of RM500 million, is expected to be officially launched by year-end.

The 41-storey property, located on a 0.43ha of land on Jalan Kia Peng, Kuala Lumpur, will have 104 units measuring between 3,000 sq ft and 5,000 sq ft each.

"There are potential en bloc buyers... we are talking to a few. The enquiries have come from Koreans and Middle Easterners," its deputy chief executive officer Lim Boon Siong said.

Lim hopes the property will fetch at least RM2,000 per sq ft based on recent property transactions in the area.

The land is owned by I-Bhd's majority shareholder Sumurwang Sdn Bhd which owns 58.59 per cent of I-Bhd. Sumurwang, controlled by I-Bhd chairman Datuk Lim Kim Hong, bought the land in 1993 for RM280 per sq ft.

I-Bhd will form a joint venture with Sumurwang to develop The Peak.

To be ready by end-2011, the project will be funded either through internal funds, cash raised from a rights issue or a combination of both.

"We are looking at the market condition now given the fuel price increase and the US recession that does not help the situation," Lim said, adding that he expects that the property market here to soften in the short term.

"However, in the long term, since land is very limited in Kuala Lumpur, things look promising," he said.

"The location of The Peak is fantastic as it is within walking distance of Suria KLCC and the Convention Centre," he added.

I-Bhd is also in talks with international hotel chains like Marriott, Starwood, Hilton and Accor to manage the property.

By New Straits Times (by Vasantha Ganesan)

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