Mah Sing - The Icon @ Jalan Tun Razak

Once again, article from The Edge:


KUALA LUMPUR: Mah Sing Group Bhd subsidiary Star Residence Sdn Bhd is selling one of two wings of The Icon Jalan Tun Razak, a grade A office development, to Koperasi Permodalan Felda Bhd for RM174.4 million in an en bloc deal.

In a statement yesterday, Mah Sing said Star Residence had entered into a sale and purchase agreement (SPA) with Felda for the proposed sale of the 20-storey West Wing of The Icon.

It said the transaction value for the wing, which had a total floor area of 243,830 sq ft, worked out to be RM715 per sq ft. Included in the purchase price are 301 carpark bays.

Upon the execution of the SPA, Felda will pay RM17.44 million or 10% of the purchase price, with the balance 90% to be paid progressively according to the stage of works completed.

Mah Sing’s group managing director Datuk Leong Hoy Kum said: “With the strong demand for commercial developments, we will continue to target more prime commercial land in Kuala Lumpur and the Klang Valley for our Icon series of commercial developments.”

“Moving forward, we target to conclude more en-bloc sales for our Icon series of commercial developments, including The Icon Mont’Kiara, where the signature tower will house SoHo units and corporate designer suites.

“With our expertise in lifestyle developments, we will raise the bar for commercial developments in our Icon series, melding trendy features into our practical designs,” he said.

Leong said with a seven-year track record of on-time delivery of quality properties, the group was confident that the Icon series of commercial properties would soon make an impact on the market.

He said construction of The Icon Jalan Tun Razak was scheduled to be completed in 24 months inclusive of the issuance of the certificate of practical completion.

“Besides making The Icon a landmark in the vicinity, we are confident that it will value add in terms of potential capital appreciation in the future as we are looking at total returns instead of just yields,” Leong said.

He said the group was targeting local and international companies which were increasingly active in the central business district.

Leong said with the economy performing well, the demand for grade A offices was growing unabated as there were a trend of companies to locate to high profile locations.

He added that with The Icon Jalan Tun Razak expected to be completed before other purpose-built office buildings in the area, the group was confident of further capital appreciation.