- The Edge Malaysia reported that two pieces of prime land in KL are the subject of a tussle involving various parties. The first involves Ladang Batu, located within Jalan Duta. Following a 53-year tussle, the courts had declared Semantan Heights as the rightful owner of 250-acre piece of land late last year. Semantan Heights – founded by the Eng Lian Group and Ng Chin Sui & Sons – is also said to be entitled to federal compensation.
- The Jalan Duta land was divided into two in the mid-1960’s when the Jalan Duta road was built. On one side of the road sits the National Hockey Stadium, the National Tennis Complex and the Institute of Islamic Understanding Malaysia (IKIM). The other end houses several government complexes, the Federal Territory Mosque and the National Archives.
- The Edge Malaysia report mentioned that the 11 mil sq ft parcel has an estimated value of RM4.6bil based on a land price of RM425psf. Residential land within Bukit Tunku within the same area can fetch ~RM500psf. The report further revealed that Semantan Heights has engaged CH Williams Talhar & Wong to estimate the amount of compensation from the government – estimated at close to RM1.6bil.
- The second involves another dispute on 132-acres of land within the Kiara Park area that is leased to Bukit Kiara Resort Bhd (BKRB), a unit of Berjaya Land. BKRB’s application for a development order (DO) for part of the land in return for surrendering 12 acres to DBKL hit a snag about a fortnight ago.
- BKRB is believed to be mulling a move to appeal with DBKL, with possibly new development plans. The earlier version in April involved the development of four blocks of serviced residences, a retail park, a recreation centre, an eco-hospital and an international school.
- On the other hand, a large-scale public park has been mooted on 466 acres of land in Bukit Kiara Hill. This may involve the amalgamation of seven parcels leased out to government agencies and private entities such as Measat Satellite Systems and BKRB.
- Interestingly, The Edge Malaysia report pointed out that based on Ho Chin Soon Research’s Greater KL 2012 map, several sites within the 354-acre KLGCC (under Sime Darby Properties) have been earmarked for resort housing and corporate offices.
- While there may be some legal ramifications involved and the timeline is still yet uncertain, we foresee the potential opening up of these two prime tracts of government land to accentuate more opportunities for Malaysian property developers going forward.
- While BKRB appears to have a foothold on the Bukit Kiara land, our channel checks indicate that many developers have been eyeing re-development opportunities for the Jalan Duta land for quite a while. The land is situated along Jalan Duta near Hartamas/Mont Kiara.
- While there could be many permutations involved, we understand that some 80 acres of land could be opened for development, including 20 acres that currently house government complexes that are marked for demolition. Maintain OVERWEIGHT on the property sector, with Mah Sing Group and IJM Land retained as our top picks.
Source: AmeSecurities
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