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Tuesday, December 9, 2008

Bandar Raya set to clinch tower sale deal with foreign firm

PROPERTY developer Bandar Raya Development Bhd (BRDB) is tipped to sign a deal with a foreign firm to sell a residential tower at its RM2 billion CapSquare integrated development in Kuala Lumpur.

It is understood that the buyer is from the Middle East, who is looking to acquire Six CapSquare.

It is one of two residential towers at the CapSquare development. The other is known as CapSquare Residences, which has been constructed.

The two parties are negotiating on the price, but are expected to conclude a deal by the first quarter of next year, a source told Business Times.
"Based on the estimated purchase price and size of the 36-storey tower (featuring 170 exclusive units), the deal may equate to a value of RM600 to RM700 per sq ft," the source said.

BRDB chief executive officer Datuk Jagan Sabapathy declined to comment, except to say that the company has been talking to people for one of its condominium blocks at CapSquare.

"But we have not finalised any deal yet. We are still in talks on several matters," Jagan said.

CapSquare, located between the city's Golden Triangle and central business districts, is a 6.1ha freehold project with 3.8 million sq ft of space.

It comprises a 300-metre long retail street, two Manhattan-inspired residences, four signature offices, two eight-storey corporate offices, two high-rise office towers including Menara Multi-Purpose, a four-storey mall and an entertainment complex.

The properties are attracting investors due to its appeal and location.

In January, Union Investment Real Estate AG, one of Europe's leading real estate investment management companies, had signed a deal with BRDB to acquire a high-rise office tower (Tower 2) for RM440 million.

Tower 2, which is scheduled for completion by 2010, is a 41-storey Grade A office building with nett lettable area of 600,000 sq ft.

Meanwhile, BRDB is expected to do better this year, thanks to higher property sales and effective cost management.

For the first nine months of its current fiscal year ending December 31 2008, BRDB posted a net profit of RM60.7 million from RM46.5 million last year.

Revenue was RM709.1 million, up from RM513 million, thanks to sales of properties at CapSquare, One Menerung in Bangsar and Troika in Kuala Lumpur.

By Business Times (by Sharen Kaur)

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