Up for Sale: Menara MIDF in KL
Permodalan Nasional Bhd (PNB) is putting up Menara MIDF along Jalan Raja Chulan, Kuala Lumpur, up for sale, The Edge Malaysia reported in its latest issue. Sources told the weekly that the asking price for the 21-storey building, the 40-year-old tower is RM140 million to RM150 million.
Menara MIDF has a gross floor area of 190,000 sq ft and a net lettable area of 160,000 sq ft. The building has two levels of basement parking with 208 parking bays and is at the moment fully occupied by Malaysian Industrial Development Finance Bhd (MIDF), a wholly-owned subsidiary of PNB.
“As part of PNB’s mandate to deliver sustainable returns to its unitholders, PNB continually seeks out opportunities to optimise its investments by reviewing its portfolio of assets, including its real estate properties. However, it is PNB’s policy not to comment on specific investments or divestment initiatives until they materialise,” a PNB spokesperson told the publication.
Stanley Toh, Executive Director of valuation and real estate agency Laurelcap Sdn Bhd told the business weekly that “depending on the purchase price, the buyer has the option to refurbish or rebuild the asset”.
“At about RM100 million, the site may be worth redeveloping, but if it is above RM130 million, a better option may be to refurbish it or undertake a major renovation as it would not be worth tearing it down,” Toh explained.
“The location is superb for a hotel as it is within walking distance to the tourist zone of Bukit Bintang and KLCC,” he added.
An executive summary dated June 2019 seen by The Edge revealed that “Nawawi Tie Leung Real Estate Consultants Sdn Bhd (NTL) is one of the firms marketing the asset”. The weekly also said that “NTL declined to comment when contacted”.
The document also stated that MIDF will move to the new PNB 118 building when completed in 2021.
Meanwhile, PNB 118 is set to be the tallest building in Malaysia when completed with 1.65 million sq ft of rentable office space.
According to reports, “half of the space will be taken up by PNB, while the top 17 floors will be allocated for a Park Hyatt hotel”.
In the KL city centre, PNB also owns its headquarters along Jalan Tun Razak, PNB Perdana Hotel & Suites On The Park Kuala Lumpur along Jalan Binjai, the former headquarters of Kenanga International along Jalan Sultan Ismail and the old Malaysia Airline System Bhd HQ near Jalan Raja Chulan. The latter is currently being redeveloped.