KUALA LUMPUR: Paramount Corp Bhd
has partnered with Mitsui Fudosan (Asia) Malaysia Sdn Bhd in a joint venture (JV) to develop a premium residential project with an estimated gross development value (GDV) of RM1.3bil.
The partnership will facilitate the development of The Ashbourne, a high-end serviced apartment residence in Kuala Lumpur’s U-Thant enclave.
The JV will see Mitsui Fudosan acquire a 49% stake in Meridian Kuasa Sdn Bhd, the project company for The Ashbourne, for a cash consideration of RM23.1mil, with Paramount retaining the remaining 51%.
The partnership marks the Tokyo-headquartered real estate company’s first collaboration with Paramount.
Paramount group chief executive officer and executive director Jeffrey Chew Sun Teong said working with Mitsui Fudosan would offer the company greater visibility and brand positioning among buyers in foreign markets.
“Our last project saw foreign buyer sales at around 60% to 70%, but that was before the war, so we were a little concerned about whether we could repeat a similar sort of attraction to international buyers,” he told the press at the signing ceremony.
“That’s why we wanted to work with an international property developer to make sure that the profile of our projects continues to expand among buyers in the North Asia segment and potentially Europe.”
Under the agreement, Paramount will lead the project management and sales and marketing of The Ashbourne, which will be developed on 3.7 acres of freehold commercial development land and is expected for completion by the fourth quarter of 2030.
Despite Malaysia facing a softer property market and persistent overhang of unsold residential units, Chew noted that demand remains strong for higher-end products in established urban locations, particularly from the international market.
“The overhang tends to be in a different segment,” he said, adding that premium property demand is increasing by a larger percentage compared to other categories as wealth creation expands among affluent buyers in nations such as Malaysia, Singapore, Indonesia, South Korea, Japan, and China.
In addition, he highlighted that Malaysia’s profile as a destination for investment has risen substantially among international players, with interest of foreigners in Malaysia growing “tremendously” over the last 18-24 months.
The Ashbourne development represents an expansion of the group’s presence in the Jalan Ampang-Kuala Lumpur city centre corridor, which has included fully-sold developments like The Ashwood and The Atrium.
The property comprises 458 serviced apartments across two towers, with units ranging from approximately 1,491 sq ft to 2,661 sq ft.
According to Chew, the price per sq ft for the property averages about RM1,350 on a net basis, higher than the developer’s previous launches, which he attributed to escalating costs of raw materials, construction and land.
Masayoshi Saito, managing director of Mitsui Fudosan said in a statement that The Ashbourne represents a landmark residential development in one of Kuala Lumpur’s most established and sought-after neighbourhoods.
“By combining Paramount’s proven local expertise with Mitsui Fudosan’s residential development experience in Japan and internationally, we look forward to delivering a distinctive, high-quality living environment that creates long-term value for residents and the surrounding community,” he said.
