Berjaya Corp (BCorp) Bhd is selling a residential unit at The Ritz-Carlton Residences in Kuala Lumpur for RM5.16 million or at about RM2,663 per square foot (sq ft).
The property, with a built-up area of about 1,938 sq ft, is a luxury residential serviced suite fully furnished with furniture, fixtures, and equipment. It has an audited net book value as of 30 June 2019 of about RM3.93 million.
The unit will be sold to Magna Mahsuri Sdn Bhd (MMSB), a wholly-owned subsidiary of Berjaya Sports Toto Bhd (BToto).
BToto said in a filing with Bursa Malaysia yesterday that MMSB had on 4 March 2020 entered into a Sale and Purchase Agreement for the proposed acquisition of the residential unit with Wangsa Tegap Sdn Bhd, an indirect subsidiary of BCorp, one of Malaysia’s largest and well-known conglomerates.
The company said the consideration of the proposed acquisition was arrived at after taking into consideration, amongst others, the strategic location and earnings potential of the property.
It also looked at the recently transacted prices of units at The Ritz-Carlton Residences by Wangsa Tegap to third parties, ranging between RM2,650 psf and RM2,934 psf.
BToto said the property is currently tenanted with tenancy agreement expiring on 21 November 2020 subject to an option to renew for an additional one year.
"The proposed acquisition represents an opportunity for MMSB to own a property in a strategic location in the heart of the Golden Triangle, Kuala Lumpur with potential capital appreciation. Upon completion of the proposed acquisition, the tenancy agreement shall be novated from Wangsa Tegap to MMSB," it said.
BToto said the proposed acquisition is expected to be completed in mid-2020.
Luxury living
The Ritz-Carlton Residences is one of two towers at Berjaya Central Park, developed by Wangsa Tegap on a 1.216 ha site at the prestigious Jalan Sultan Ismail, near the Bukit Nanas Monorail station.
The other tower is Menara Bangkok Bank, a Grade A office tower.
The Ritz-Carlton Residences has a total of 288 units of one-, two-and three-bedroom suites as well as penthouses ranging from 1,023 sq ft to 4,284 sq ft. The total gross development value (GDV) is RM1.4 billion
BCorp launched the residences in 2015 at an average price of RM2,500 per square ft (psf). Each unit has a fully-fitted designer kitchen and bathroom as well as wardrobes.
The residences provide a five-star luxury living with personalised services such as 24-hour concierge and housekeeping services as well as security and lifestyle facilities.
Berjaya Land Bhd (BLand) senior general manager (properties marketing) Tan Tee Ming told NST Property in August 2019 that close to 60 per cent of the units are either sold or currently on lease, mostly to foreigners where a large number are Japanese.
Tan said the remaining units at The Ritz-Carlton Residences, which was completed in 2017 are selling at RM2,558 psf (bare unit) and RM2,800 psf (fully furnished with interior design).
He also said the penthouses are selling at an average price of RM3,000 psf (bare unit), and the most expensive is going for RM10.8 million (3,200 sq ft), which is fully furnished and well decorated.
The Ritz-Carlton Residences has 16 penthouses, of which there are about five remaining for sale.
The residences are not owned, developed or sold by The Ritz-Carlton Hotel Company L.L.C. or any of its affiliates. Wangsa Tegap uses The Ritz-Carlton mark under a licence from an affiliate of The Ritz-Carlton Hotel.