OFFERS are coming in from local and foreign companies for the two parcels of land currently occupied by Western Digital in Sungei Way Free Trade Industrial Zone (FIZ) in Petaling Jaya.
It is understood that Knight Frank Malaysia, the company recently appointed to help sell the two plots, has been approached by large international manufacturers that include semiconductor companies and local developers.
When contacted, Knight Frank Malaysia executive director for capital markets, Allan Sim, confirmed that it had received a number of enquiries, but he declined to name the companies.
Sim told NST Property that Knight Frank would initiate direct negotiations with the respective companies.
“It is up to the buyers if they want to purchase both sites, or either one. It depends on who wants to buy and their objective,” he said.
Western Digital, an American computer hard-disk drive (HDD) and data storage company, is selling its HDD assembly facilities at the FIZ.
There are two facilities for sale ― on 1.46ha and 4.45ha site ― flanking the North Eastern and North Western corners of the Sungei Way FIZ respectively.
Western Digital has announced its plans to cease operations at the Petaling Jaya facility by the end of this year in a bid to rationalise its HDD manufacturing operations globally, due to declining long-term demand for HDDs.
The company entered Malaysia in 1973, initially manufacturing custom semiconductors before transitioning to making HDDs. In 2011, it had invested in a US$1.2 billion research and development facility at the Petaling Jaya site.
Sim said there is no timeline to sell the two land parcels, adding that there has been an asking price for the two sites without revealing it.
“The final offer is about the price and any condition attached to the offer. We are looking for best-suit purchaser. We want to find a genuine buyer. The party must have the financial ability to pay. Western Digital cannot take any risk dealing with a party that is uncertain,” he said.
It was reported last year that the 4.45ha site alone could fetch between RM160 million and RM190 million.
However, market has it that both the sites may fetch just over RM200 million.
In the first quarter of 2016, Sunway Bhd paid RM35.82 million, or RM169.95 per sq ft (psf), to Tamura Electronics (M) Sdn Bhd for 1.96ha of freehold land with an industrial factory and warehouse in the FIZ.
Prior to that, in May 2015, Sunway bought a total of 6.88ha next to Western Digital for a combined RM286 million, or RM386 psf, to develop the RM2 billion Sunway Serene.
The price tag was three to four times more than what Mah Sing Group Bhd paid in 2009 for a 7.9ha site across Western Digital to develop Icon City.
Mah Sing paid RM89 million (RM104 psf) for the land that used to house Panasonic air-conditioner plant at the intersection of the Federal Highway and Damansara Puchong Highway (LDP).
“Sunway’s land is expensive as it is strategically located and overlooks the 18-hole Subang National Golf Course, a 6ha public lake and lush greenery. Western Digital is closer to the Federal Highway and LDP. There are a lot of electronic and semiconductor companies as well as houses and apartments nearby.
“I’m not sure what a developer can do there, but I think the land is more suitable for manufacturers since it has ready facilities,” said a senior property consultant.
In a statement last week, Sim said the two land parcels would provide an opportunity for large manufacturers looking to expand their footprint in Malaysia as there are high-grade facilities ready† for immediate operations.
“It is rare for such a sizeable facility within an established FIZ to be made available to the market. Most existing FIZs within the Klang Valley are generally occupied,” he added.
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