KUALA LUMPUR: Landowner KKH Pavilion Development Sdn Bhd and IBN Corp Ltd are redeveloping Hotel Fortuna at Bukit Bintang into the fifth tallest building in the city centre.

Bukit Bintang is part of the Kuala Lumpur's Golden Triangle.

Five-star hotels, posh office spaces and luxury restaurants populate this area that stretches from Jalan Bukit Bintang, Jalan Pinang, Jalan Stonor, Jalan Conlay, Jalan Sultan Ismail and Jalan Ampang.

IBN Corp is a wholly-owned subsidiary of Shenzhen ZRPZ Group.

IBN Corp director Datuk Seri Michael Yang said the highrise will be built over three years at a cost of RM650 million.

“This 68-storey building will comprise service apartments and a 5-star hotel. The total built-up area will be 730,062 sq ft," Yang said at the ground breaking ceremony of “IBN Bukit Bintang” here today.

"When this tower is completed, it will be among the five tallest buildings in Kuala Lumpur. The gross development value of this block will be RM1.5 billion," he added.

Yang assured all things are in order.

“We've secured the development order from DBKL and we're waiting for the approval for the current building (Hotel Fortuna, which is no longer in operation) to be demolished," he added.

IBN Corp should be able to secure approval to demolish Hotel Fortuna in six months, he added.

On whether the neighbouring Pavilion mall owner has a stake in the land which Hotel Fortuna sits on, KKH Pavilion Development director Datuk Seri Ricky Kok Kuan Hwa said: "No, I am 100 per cent the owner of this freehold land. I bought over Hotel Fortuna in 2014, after I purchased the neighbouring Izumi Hotel in 2011.

"Tan Sri Desmond Lim Siew Choon is not involved in this project. KKH Pavilion Development has my initials and the word 'Pavilion' is generic. Anyone can use it," said Kok.

Yang said IBN Bukit Bintang's freehold residential units are priced above RM2,000 per sq ft.

"We see a good take-up, probably 70 per cent local buyers and the remaining from the Middle East, China and India," he said.