KUALA LUMPUR, July 16 — Paramount Corporation Bhd plans to redevelop two properties in the U Thant enclave of Kuala Lumpur into a premium high-rise residential development with an estimated gross development value of RM863 million.
The property developer said its unit, Paramount Property (Cityview) Sdn Bhd (PPCV), had bought two contiguous pieces of land totalling 1.83 hectares, along with the condominium and serviced apartment buildings on them, for RM243.8 million for the purpose.
PPCV today signed agreements with Singapore-listed Wing Tai Holdings Ltd’s subsidiaries, Seniharta Sdn Bhd and DNP Jaya Sdn Bhd, to acquire the properties at Jalan Ampang Hilir.
In a statement, Paramount group chief executive officer Jeffrey Chew said the proposed development would comprise about 650 units of condominium.
“The estimated GDV of RM863 million to be generated from the proposed development over a period of five years is expected to further strengthen Paramount’s current total expected GDV of RM6.8 billion to RM7.7 billion and contribute positively to future earnings,” he said.
The site is located at the prestigious U-Thant enclave which is surrounded by foreign embassies, high commissions, high-end residences, international schools and medical centres.
“The market prices for condominiums in the area are about 30 per cent to 40 per cent lower than those at the Kuala Lumpur City Centre (KLCC) area (located about 2.5 km away). As such, Paramount’s proposed premium residential development would be an attractive address in the KL city and an alternative to properties at KLCC,” he said.
Chew said the development would have easy access to a catchment of expatriates in the area as well as the larger population of the Klang Valley, which is expected to surpass 10 million by 2035.
“The acquisition is in line with our strategy of replenishing land bank at strategic locations with strong growth potential and to scale up our property development activities to generate long-term sustainable income.
“Demand for housing in the Klang Valley remains resilient due to population and economic growth. The value of residential property transactions in the Klang Valley was RM33.9 billion in 2019, accounting for nearly half the total of RM72.4 billion transacted in Malaysia that year,” he said.
As published: Bernama