CIMB plans to sell office building

CIMB plans to sell office building

By BUSINESS TIMES

CIMB Group is putting up its Menara Commerce office building for sale.

According to sources close to the deal, the group has already prepared the request for proposals (RFPs) to be given out to any parties interested in buying the building, located at the intersection of Jalan Raja Laut and Jalan Esfahan in Kuala Lumpur.

It is also learnt that the group plans to dispose of the property on a sale-and-lease-back basis whereby it will continue to occupy the building and pay rent to the new owner.

"The property is situated in the heart of the city centre. The location is strategic. It would be a good purchase for corporate and regional REIT (real estate investment trust) players," a source told Business Times.

Property valuers contacted estimated the market value of the 630,000 sq ft building to range from RM250 million to RM441 million, based on the current market value of between RM400 per sq ft and RM700 per sq ft for commercial buildings in the area.

DTZ Nawawi Tie Leung Property Consultants executive director Brian Koh said the Jalan Raja Laut-Jalan Tuanku Abdul Rahman precinct is a good area and properties in the area are very much in demand, especially by local investors.

"There are a lot of buildings located along the area, and the value of these properties would depend on the quality of the property itself. Buildings with a high occupancy rate would command higher value.

"In the case of Menara Commerce, it is used by the group itself and, because of that, it has full occupancy. I think the market value for the property would be good," he said.

Another valuer, who declined to be named, said that as one of the city's popular retail districts, the properties located along Jalan Raja Laut-Jalan Tuanku Abdul Rahman have enormous potential.

"Jalan Tuanku Abdul Rahman is a popular shopping destination among most Malaysians. Because of that, the market value for properties within the area is attractive," he said.