KUALA LUMPUR : Permodalan Nasional Bhd (PNB) is reportedly selling the 21-storey Menara MIDF in Jalan Raja Chulan to Singapore-based JD Hospitality Sdn Bhd for about RM140 million.
The selling price for the tower was estimated at RM875 psf when the building was first put up for sale more than 18 months ago, according to The Edge Weekly.
The fund manager had previously confirmed that it was in the midst of a sale process but that it was unable to disclose any details on pricing before completing the deal.
It was reported that the new owner might retain the building as an office building but may repurpose it as a hotel at a later stage.
PNB’s subsidiary Malaysian Industrial Development Finance Bhd (MIDF) is currently the sole tenant of the building.
The financial services provider is scheduled to vacate the premises and relocate to Malaysia’s tallest tower PNB 118 in the second half of 2022.
Initially, MIDF’s new headquarters at PNB 118 were slated for completion at end-2021 but the completion date has now been moved to the second quarter of 2022 due to disruptions caused by the Movement Control Order.
It was reportedly said the sale the tower would allow the fund manager to deliver sustainable returns to its unit holders while continually seeking out opportunities to optimise its investments by reviewing its portfolio of assets, including its real estate properties.
The weekly said at least two separate sources had indicated that the new owner’s plan would convert the building into a hotel once MIDF’s lease expires.
According to the Companies Commission of Malaysia’s website, JD Hospitality is 70 per cent-owned by Singapore-based MES Group Holdings Pte Ltd and 30 per cent by Abdul Rawoof Shah VM Kader.
MES’ website states that it manages a portfolio of real estate investment, including workforce accommodation, integrated logistics and warehouse facilities and services, heritage hotels, office space and student accommodation.
It was reported that PNB had acquired Menara MIDF in 2009.
The building has a gross floor area of 190,000 sq ft and net lettable area of 160,000 sq ft.
The 41-year-old Menara MIDF is located between Menara Affin and Holiday Inn Express in Jalan Raja Chulan.
Previously called Kompleks Kewangan, Menara MIDF is a freehold asset, occupying a 36,382 sq ft parcel.
The building has two levels of basement parking with 208 parking bays.
By NST Business