Malaysia’s land transactional activity up significantly in 3Q — Savills Asia-Pacific Investment Quarterly report

TheEdge Tue, Nov 03, 2020 01:47pm - 3 years View Original


KUALA LUMPUR (Nov 3): The Savills Asia-Pacific Investment Quarterly Q3/2020 (third quarter of 2020) report revealed that Malaysia’s land transactional activity increased significantly in the period despite an economy impacted by the Covid-19 pandemic and continued political uncertainty.

The total transaction value rose by 70% year-on-year (y-o-y) to a total of RM2 billion. 

The largest deal in the reviewed quarter was the acquisition of two parcels of land in the Kamena Land District of Bintulu, Sarawak by Sarawak Economic Development Corp (SEDC) for RM340 million. The land will be used for the development of a petrochemical hub in the region. 

In the period, the industrial sector saw the most action with Hartalega NGC Sdn Bhd’s purchase of a 60.6-acre (24.52ha) industrial land in Selangor. The company is looking to expand its glove manufacturing facilities and the land acquired is adjacent to its existing headquarters in Sepang. 

Meanwhile, Scientex Bhd entered into agreements to acquire a 1,358-acre parcel from Guocoland (Malaysia) Bhd for RM260.2 million and 202-acre agricultural land in Johor from Lee Pineapple Co (Pte) Ltd for RM185 million. The acquisitions will increase the company's existing land bank to achieve its goal of building 50,000 affordable homes nationwide by 2028. 

The transaction between Paramount Corp Bhd and Singapore-listed Wing Tai Holdings Ltd was the most significant deal in Kuala Lumpur. Paramount acquired Lanson Place and Kondominium 8 from Wing Tai for a total value of RM243.8 million. 

The developer plans to redevelop the 4.54-acre plot into a premium high-rise residential development with a gross development value (GDV) of approximately RM860 million, to be completed in five years. 

In the report, Savills expected activity to be healthy, moving forward, driven by the industrial sector, which alone accounted for RM780 million worth of transactions. 

Besides Malaysia, other countries such as Australia, China, Indonesia, Singapore and Thailand were highlighted in the report.

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