VENUS ASSETS SDN BHD, the developer of the upcoming prestigious Four Seasons Place Kuala Lumpur, is believed to have outdone itself with the sale of a duplex residential unit for an estimated RM21 million, or RM3,300 psf.
Industry players contend that at RM3,300 psf, it could be the country’s highest price locked-in for a residential unit sold by a developer. A source familiar with the deal tells The Edge that the new record price for the residence was set by a local buyer. The deal was completed last month. Based on reports, as recently as six months ago, units were being sold at RM3,000 psf.
Four Seasons Place is a project backed by Sultan of Selangor Sharafuddin Idris Shah, Tan Sri Syed Yusof Syed Nasir and tycoon Ong Beng Seng.
It is a 65-storey tower comprising Four Seasons Private Residences Kuala Lumpur and the Four Seasons Hotel Kuala Lumpur. Only the residential portion of the building, still being constructed, on Jalan Lumba Kuda, off Jalan Ampang, is available for sale.
Property valuer and consultant, Stanley Toh of Laurecap Sdn Bhd, tells The Edge that while new launches such as Four Seasons have managed to breach the RM3,000 psf mark, other units such as those in Banyan Tree Pavilion are going for between RM2,500 and RM2,700 psf on the secondary market.
“For completed properties, Binjai On The Park seems to fetch the highest [values], at an average of between RM 2,200 and RM 2,800 psf with the exception of one unit that was transacted at RM30 million on Jan 7, 2013, or at about RM 5,200 psf,” Toh says.
He adds that units that are able to fetch higher prices are often branded properties. “Most of the new development launches with a price tag of close to RM3,000 psf would have some sort of branding attached to it. 8 Conlay is expected to have a collaboration with Kempinski while others nearby are Harrods Hotel & Residences and Pavilion Banyan Tree,” he says. With such branding, the developer is able to obtain a premium and justify the high price tag, he adds.
At Four Seasons Place, there are 242 residences, ranging from studio to seven-bedroom units. The Edge understands that the take-up rate for the units now stands at 73%. Four Seasons also takes pride in the fact that the penthouses, measuring 11,900 sq ft, were booked years ahead of the project’s official launch in January 2013.
Levels 60 to 63 will house five-bedroom duplexes, which will have a built-up of 6,512 to 7,039 sq ft and come with a swimming pool each. The three-bedroom units, meanwhile, have a built-up of between 2,271 to 2,885 sq ft and the size of the four-bedroom units, between 3,670 and 3,843 sq ft.
In total, the entire mixed-use development will offer 1.4 million sq ft in gross floor area. The first six floors of the building have been allocated to retail space, to be positioned as a luxury mall, offering 300,000 sq ft in gross floor area.
An earlier report had put the gross development value of the project at RM2.5 billion, but with prices hitting RM3,300 psf, the GDV of Four Seasons Place, which is being built on a 1.06 ha site, could be much higher.
The project is being constructed by the China Railway Construction International Group. While the cost of construction and interior design is not known, it was reported in July that the value of the contract won by China Railway was RM950 million.
The project, which commenced in late 2012, is expected to be completed in 2017. The land is said to have been purchased by Venus Assets in 2003 for an estimated RM90 million, or RM788.80 psf, from Tan Sri Khoo Teck Puat, who was once the largest shareholder of Standard Chartered Plc. Piling works commenced in 2009 but stopped shortly thereafter, before the project was relaunched in late-2012.
The reason for the delay was due to Venus Assets seeking a partner. It is said have held talks with Middle Eastern investors, Khazanah Nasional Bhd and even Kingdom Group. At one time, it had even held talks with KLCC Property Holdings Bhd to look at the possibility of extending the Twin Towers development.
Venus Assets, set up in 2003, is wholly owned by Venus Pacific Sdn Bhd. Venus Pacific is 70:30 owned by Attesa Investment Ltd and ISY Equity Sdn Bhd. Attesa is a company linked with Ong, while ISY is linked with the sultan and Syed Yusof.
Venus Assets posted its maiden revenue in the financial year ended Dec 31, 2013, of RM102.59 million, possibly after officially launching Four Seasons Place. Profit after tax in FY2013 was RM21.68 million, compared with a net loss of RM7.03 million in FY2012.
This article first appeared in The Edge Malaysia Weekly, on October 20 - 26, 2014.