En masse sale of Desa Ku­dalari de­layed

> Unit own­ers of KL’s first high-rise condo need time to study bid­ders’ pro­pos­als amid mar­ket un­cer­tain­ties

The Sun (Malaysia) - - SPEAK UP - BY EVA YEONG

PE­TAL­ING JAYA: The sale of Kuala Lumpur’s first high-rise con­do­minium Desa Ku­dalari has been de­layed as unit own­ers are tak­ing a longer time to de­cide on the short­listed bid­ders’ pro­pos­als.

“Things have changed so much and there are other things to con­sider now. The is­sue is not so much with the pro­pos­als but with mar­ket con­di­tions and un­cer­tain­ties in the econ­omy. Per­haps the unit own­ers want more cer­tainty be­fore de­cid­ing,” said a source close to the pro­posed deal.

It is un­der­stood that the short­listed bid­ders have sub­mit­ted their pro­pos­als and bid­ding prices, and these have been pre­sented to the po­ten­tial sell­ers.

The en­tire process, which was sup­posed to be com­pleted last month, is still on­go­ing as re­sponse from unit own­ers has been slow.

In April, prop­erty con­sul­tancy firm CBRE-CH Wil­liams Tal­har & Wong (CBRE-WTW) was ap­pointed by the ma­jor­ity of unit own­ers to seek po­ten­tial buy­ers.

If the deal goes through, it will be the coun­try’s first en masse sale of a strata prop­erty. A sur­vey done ear­lier by CBREWTW showed that over 90% of unit own­ers in­di­cated their in­ten­tion to sell.

Desa Ku­dalari, which is over 30 years old, had a to­tal of 140 unit own­ers and a 70% oc­cu­pancy rate as at April this year.

The sub­mis­sion of ex­pres­sions of in­ter­est closed on April 27 and the in­for­ma­tion mem­o­ran­dum was re­leased to the short­listed bid­ders by May 11. The en masse sale re­port­edly at­tracted 12 in­ter­ested bid­ders com­pris­ing both lo­cal and for­eign par­ties.

Based on CBRE-WTW’s ini­tial time­line, the unit own­ers were to eval­u­ate the pro­pos­als and make a de­ci­sion by the end of Septem­ber, fol­lowed by the com­ple­tion of the ex­e­cu­tion and bind­ing agree­ments by Oc­to­ber.

De­vel­oped by Tan & Tan De­vel­op­ments Bhd, Desa Ku­dalari was the first high-rise con­do­minium to be built in Kuala Lumpur, get­ting its name from its lo­ca­tion over­look­ing the for­mer Kuala Lumpur race course. It com­prises a 19-storey con­do­minium tower and four blocks of three-storey build­ings built on 7.35 acres of free­hold land. There is a to­tal of 186 units.

At a me­dia brief­ing in April, CBREWTW deputy man­ag­ing di­rec­tor Danny Yeo said the own­ers ap­proached the firm to ex­plore op­tions about a year prior and sev­eral meet­ings were held with the own­ers be­fore de­cid­ing on an en masse sale.

Ac­cord­ing to Yeo, the last trans­acted price within the project was RM1,250 per square foot (psf) in a sale done last year. Based on the firm’s ob­ser­va­tion, projects in the sur­round­ing area have fetched prices as high as RM3,573 psf.

CBRE-WTW’s cal­cu­la­tions show that the RM1,250 psf trans­acted price trans­lates into a land price of RM960 psf, which is a far cry from what own­ers could po­ten­tially get from the en masse sale, based on the in­dica­tive value of be­tween RM2,000 psf and RM3,500 psf.

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