Boustead puts up KL property for sale

  • Property
  • Friday, 21 Aug 2020

Up for sale: Affin’s headquarters in Jalan Raja Chulan, KL.

PETALING JAYA: Boustead Holdings Bhd has put up one of its properties, currently tenanted by Affin Bank, for sale as the bank mulls its move to new headquarters in Tun Razak Exchange.

The move, part of a series of moves at the Kuala Lumpur central business district, would create some activity in today’s Covid-19 environment.

Boustead is an umbrella holding company for the Armed Forces Fund Board, which controls several companies including Affin Holdings Bhd. Affin Bank Bhd is its wholly-owned subsidiary.

The sale by expression of interest, comes in two stages; the first stage closes at noon, Sept 11. Those shortlisted will move on to stage two. It is hoped that both local and foreign parties would be interested in the building, a source said.

The comparable market price in that locality is about RM900 per sq ft, he said.

The sale of Affin headquarters comes slightly more than a month after Boustead inked a deal to sell 2.93 acres in Jalan Cochrane near the MyTown shopping centre.

Last year, there were press reports that Boustead was considering selling the Royale Chulan Bukit Bintang Hotel. In its 2019 annual report, the hotel sale is yet to be concluded.

As for Affin headquarters located near Menara Boustead, the 21-year-old building is entirely tenanted by the bank. It has a net lettable area of 200,746 sq ft, with a net yield of about 6%, according to the advertisement.

Said a source: “The building belongs to the parent company and Affin is renting it from them. They will stay on until the expiry of the lease. Affin pays rent to the parent company, Boustead Holdings Bhd.”

Affin started building its own headquarters in international financial centre Tun Razak Exchange (TRX) after having bought the land from KLIFD Sdn Bhd, a subsidiary of 1MDB Real Estate Sdn Bhd (1MDB RE), which was subsequently renamed TRX City Sdn Bhd, the master developer of the 70-acre TRX development.

The land was purchased in 2015 for RM255mil, which translates to RM4,699 per sq ft, according to press reports. The new headquarters comprises close to 50 floors and has a land area of 1.25 acres versus its current 20-storey site on a 0.84 acre footprint.

The new headquarters is scheduled to be completed by the end of this year at around the same time as the HSBC building.

Prudential moved into Menara Prudential at TRX after vacating its headquarters, then known as Menara Prudential, in Jalan Sultan Ismail last year. As for Affin, it is believed that the plan was to stay on at 80 Jalan Raja Chulan, until the expiry of the lease and move to the new headquarters, a source said.

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Boustead , Affin Bank , Prudential , TRX , property ,


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