En masse sale of KL's first high-rise condominium delayed

PETALING JAYA: The sale of Kuala Lumpur’s first high-rise condominium Desa Kudalari has been delayed as unit owners are taking a longer time to decide on the shortlisted bidders’ proposals.
“Things have changed so much and there are other things to consider now. The issue is not so much with the proposals but with market conditions and uncertainties in the economy. Perhaps the unit owners want more certainty before deciding,” said a source close to the proposed deal.
It is understood that the shortlisted bidders have submitted their proposals and bidding prices, and these have been presented to the potential sellers.
The entire process, which was supposed to be completed last month, is still ongoing as response from unit owners has been slow.
In April, property consultancy firm CBRE-CH Williams Talhar & Wong (CBRE-WTW) was appointed by the majority of unit owners to seek potential buyers.
If the deal goes through, it will be the country’s first en masse sale of a strata property. A survey done earlier by CBRE-WTW showed that over 90% of unit owners indicated their intention to sell.
Desa Kudalari, which is over 30 years old, had a total of 140 unit owners and a 70% occupancy rate as at April this year.
The submission of expressions of interest closed on April 27 and the information memorandum was released to the shortlisted bidders by May 11. The en masse sale reportedly attracted 12 interested bidders comprising both local and foreign parties.
Based on CBRE-WTW’s initial timeline, the unit owners were to evaluate the proposals and make a decision by the end of September, followed by the completion of the execution and binding agreements by October.
Developed by Tan & Tan Developments Bhd, Desa Kudalari was the first high-rise condominium to be built in Kuala Lumpur, getting its name from its location overlooking the former Kuala Lumpur race course. It comprises a 19-storey condominium tower and four blocks of three-storey buildings built on 7.35 acres of freehold land. There are a total of 186 units.
At a media briefing in April, CBRE-WTW deputy managing director Danny Yeo said the owners approached the firm to explore options about a year prior and several meetings were held with the owners before deciding on an en masse sale.
According to Yeo, the last transacted price within the project was RM1,250 per square foot (psf) in a sale done last year. Based on the firm’s observation, projects in the surrounding area have fetched prices as high as RM3,573 psf.
CBRE-WTW’s calculations show that the RM1,250 psf transacted price translates into a land price of RM960 psf, which is a far cry from what owners could potentially get from the en masse sale, based on the indicative value of between RM2,000 psf and RM3,500 psf.