RM7b Pavilion Damansara project to start in 2Q2016

The two-phase Pavilion Damansara Heights mixed-use development in Kuala Lumpur, being undertaken by Tan Sri Desmond Lim Siew Choon in partnership with the Canada Pension Plan Investment Board (CPPIB), will have a gross development value of RM7 billion, sources familiar with the project say.

Targeted for completion in 2021, the development will sit on 15.84 acres in Pusat Bandar Damansara and comprise 13 office blocks, four towers with 1,256 serviced apartments and 240 hotel rooms, and a five-storey retail podium with a net lettable area (NLA) of some one million sq ft.

Phase 1 (9.5 acres) is undertaken by Impian Ekspresi Sdn Bhd and Phase 2 (6.34 acres), Jendela Mayang Sdn Bhd. It is learnt that demolition work at the site has commenced and construction will begin in six months’ time.

This means that there will be massive construction contracts up for grabs in the next few years.

In April, Impian Ekspresi awarded Domain Resources Sdn Bhd — a subsidiary of Malton Bhd — a RM703 million contract for clearance, demolition, foundation, retaining wall system, basement car park, retail podium and infrastructure work. Lim is the executive chairman and an indirect substantial shareholder of Malton.

The Edge understands that this award is only for work on the 9.5-acre site and the contract for Phase 2 has yet to be awarded.

CPPIB announced in August that it had formed a joint venture with Pavilion Group to invest in Pavilion Damansara Heights. It said it would pump in RM485 million for a 49% stake in the JV.

It is understood that the Canadian fund’s investment is in both the local companies undertaking the project. A search on the Companies Commission of Malaysia website, however, reveals that CPPIB’s stakes have yet to be reflected in the companies.

As it stands, Jendela Mayang’s shareholders are Mohd Khairuddin Nawawi and Rosadah Awang (each holding a 30% stake) and Jameson Pias@Zainal Pias (40%). Lim directly owns 70 shares in the company. However, two CPPIB representatives — Gilles Alexander Chow and Jimmy Phua Yong Gim — were appointed to the board on Aug 24.

As for Impian Ekspresi, it is owned by Anjurantau Sdn Bhd (51%) and Ombak Mutiara Sdn Bhd (49%). Lim owns 98% of Anjurantau while British Virgin Islands-based West Glory Holdings Ltd holds the remaining 2%. The shareholders of Ombak Mutiara, which has an issued and paid-up capital of RM2, are Datuk Sulaiman Kudus and Shahrin Osman.

On Oct 22, Jendela Mayang applied for planning permission for the Phase 2 site from Dewan Bandaraya Kuala Lumpur. This follows the completion of the acquisition of a parcel from Selangor Properties Bhd for RM450 million on Sept 30. The parcel was previously used as a car park. Jendela Mayang now wants to build four office towers on the site — one rising 42 storeys; another, 20 storeys; and two, 10 storeys.

Another 42-storey block will comprise a hotel with 240 rooms (12 floors) and 270 serviced apartments (28 floors).

The new plan will add to the proposed development by Impian Ekspresi on the 9.5-acre parcel, where the nine office blocks that were owned by Bukit Damansara Development Sdn Bhd, an indirect subsidiary of Johor Corp, once stood.

Impian Ekspresi has obtained approval to build 12 blocks comprising offices, serviced apartments and a retail floor called Pavilion Retail Galleria. Nine of them will be office blocks — the lowest at six storeys and the tallest at 22 storeys. These freehold corporate blocks will have a minimum NLA of 52,000 sq ft each.

The other three buildings will comprise serviced apartments — two 50-storey blocks with 405 and 382 units and a 56-storey block with 199 units. According to Pavilion Damansara Heights’ website, one of the 50-storey blocks and the 56-storey tower will be promoted as premier residences.

Dubbed “The new metropolis of Damansara Heights”, the preview of the corporate towers is by invitation only. The towers will all be Grade A and will have Green Building Index status.

There will two MRT stations — Pusat Bandar Damansara and Semantan — in the vicinity. - By Vasantha Ganesan / theedgeproperty.com