KUALA LUMPUR: While AmBank Research’s outlook on the property sector remains at “Overweight”, the research house believes it is too early to determine the potential winners of Bandar Malaysia redevelopment project.
“We believe it is still in the early days before we can ascertain the potential plays for the Bandar Malaysia project,” it said on Tuesday.
“Apart from being located in a greenfield area amid keen competition from other mega redevelopment projects near the city centre, we are also unable to determine the financial and economic viability of this project due to the absence of other key details such as land cost, efficiency factor and development components,” it added.
Maintaining its “overweight” stance on the Malaysian property sector, AmResearch said its “buy” recommendation for the sector were Mah Sing Group Bhd, Malaysian Resources Corp Bhd, Eastern & Oriental Bhd and Titijaya Land Bhd.
1MDB Real Estate Sdn Bhd (1MDB RE), the property development arm of state investment fund 1Malaysia Development Bhd (1MDB), received the planning approval from the KL City Hall for its proposed Bandar Malaysia redevelopment project on Monday.
The “approval-in-principle”, granted based on 1MDB RE’s master plan for Bandar Malaysia’s, was for a mixed-used development with an average gross plot ratio of 4.05, across the entire 486-acre site, which currently houses the Sg Besi Airfield.
The planning approval marks another step in 1MDB RE’s quest to redevelop the site into a transit-oriented development (TOD).
“In our previous reports, we had written that property consultancy firm CH William
Talhar was appointed as transaction advisor for Bandar Malaysia. Back in June, interested parties were invited to submit expressions of interest (EOI) to participate in the project by July 10,” AmResearch said.
Bandar Malaysia is among several prime government redevelopment projects (Tun Razak Exchange or TRX, KWASA Damansara and Menara KL118) that are set to take off over the next few years. Bandar Malaysia is central to Greater KL’s transformation programme.
The project site is located approximately 7km from Kuala Lumpur city centre, and 3km from the TRX. It currently houses the Sg. Besi airfield.
A key attraction for Bandar Malaysia is its potential to transform into an integrated transport hub within the city centre. This can happen with the proposed High-Speed
Rail terminus, which will be located within the development together with other future transport options that include the MRT lines 2 and 3, KTM Komuter, Express Rail Link (ERL) to KLIA and KLIA2, Bas Rapid Transport (BRT), as well as connections to 12 major highway networks.
Having previously shortlisted four bidders for Bandar Malaysia development, 1MDB RE, the master developer of the project, said reputable domestic and international property specialists were conducting detailed due diligence to become development partners in the project. The final outcome should be known by year-end.
News source: (The Star)