Hap Seng to buy prime commercial land in KL

Hap Seng said the land it is nuying forms part of the 75.5-acre commercial development known as KL Metropolis. (File pic shows another Hap Seng project, TheHap Seng Industrial Park in Shah Alam

PETALING JAYA: Hap Seng Consolidated Bhd has proposed to acquire a parcel of vacant leasehold commercial land known as Met 3, measuring 668,212.79 square feet (sq ft), in Jalan Duta, Kuala Lumpur, for RM868.67mil to strengthen its property development business.

In a filing with the stock exchange, Hap Seng said the acquisition price was based on RM1,300 per sq ft.

It said its wholly-owned subsidiary, Sierra Positive Sdn Bhd, had entered into a conditional sale and purchase agreement to acquire the Met 3 land.

The land forms part of the 75.5-acre commercial development known as KL Metropolis accessible via Jalan Kuching and Jalan Tuanku Abdul Halim, from TTDI KL Metropolis Sdn Bhd, the wholly-owned subsidiary of Naza TTDI Sdn Bhd, which in turn is an 80%-owned subsidiary of Naza Corp Holdings Sdn Bhd.

The lease tenure of the commercial land will expire on Aug 11, 2109.

“Located right adjacent to the Malaysia International Trade and Exhibition Centre, the proposed Met 3 acquisition enables the group to strengthen its property development presence in KL Metropolis,” it said.

“KL Metropolis is one of the most sought-after addresses in the Klang Valley surrounded by the prestigious townships of Damansara Heights, Sri Hartamas, Mont Kiara and Bangsar. Home to the largest trade and exhibition centre in Malaysia, various plans to further improve connectivity within and around KL Metropolis are already underway,” it added.

Accordingly, Hap Seng said it was confident that the connectivity and accessibility of the Met 3 Land would bode well for its future project launches.

“This land-banking initiative in a strategic location is expected to create sustainable revenue and profitability for the group’s property development business,” it said.

Hap Seng had intention to build a mixed commercial project, with a gross development value of RM8.7bil, on the Met 3 Land.