French embassy sells land to Putrajaya Ventures

The French embassy has sold its coveted 7.98-acre real estate comprising two parcels to Putrajaya Ventures Sdn Bhd, a subsidiary of Putrajaya Holdings Sdn Bhd.

Sources told StarBiz that the parcels may have been sold at RM2,400 per sq ft, instead of the RM3,188 per sq ft, as reported earlier.

“Putrajaya Ventures paid a competitive price for it,” French Embassy first secretary Damien Syed told StarBiz in an email.

However, he said price was not the only factor for the decision to sell the land to Putrajaya Ventures. Syed declined to comment on the transaction.

The sale debunked earlier reports that property developer Malaysian Resources Corp Bhd (MRCB) was likely to land the deal, given the company’s competitive bid. The parcels, located at the prestigious Jalan Ampang, Kuala Lumpur address near the Petronas Twin Towers, may be the largest foreign mission-owned land in the country.

The French mission’s real estate in Jalan Ampang comprises a parcel with a residential title and another with an institutional title.

KLCC Holdings Bhd has a 64.4% stake in Putrajaya Holdings, while Khazanah Nasional Bhd has a 15.59% stake and CIMB Group Nominees (Tempatan) Sdn Bhd has a 20% stake.

MRCB had acquired the German embassy’s 1.87-acre plot located along Jalan Kia Peng, a leafy neighbourhood of bungalows off Jalan Ampang.

Besides the French and German missions’ sales, the former British High Commission parcel was sold to SP Setia Bhd in late 2012 at RM2,200 per sq ft.

The parcel, located opposite the French mission, comprised two parcels totalling three acres and with residential and commercial titles. The parcels were sold with a 47% premium over its reserved price of RM1.500 per sq ft.

There was no reserved price for the French embassy land.

According to to a CH Williams Talhar & Wong report, the German embassy’s real estate was about 6% above market value due to the continual demand for “prime land” in Kuala Lumpur.

Syed said the French mission had yet to make a decision on a new location.

“It’s still under consideration and will be made before August,” he said. - By The Star