GSH buying 50% stake in prime Jalan Petaling plot

Singapore

PROPERTY developer GSH Corporation is investing RM164.5 million (S$55.2 million) to acquire a 50 per cent stake in a prime 1.4-hectare plot in Kuala Lumpur's Chinatown precinct of Jalan Petaling.

The property developer said on Monday that it has signed a conditional subscription and shareholders agreement with Malaysian conglomerate Tradewinds Corporation for the stake in Aspirasi Kukuh, a wholly owned subsidiary of Tradewinds which owns the plot, and which will also undertake its development.

The consideration will be paid via a subscription of new shares for about RM50.1 million, and a shareholder loan. It will be funded by a combination of the group's internal resources and borrowings.

GSH said the 99-year leasehold site will be developed into a premium condominium of about 1,700 units. It is about 300 metres from the M101 Skywheel integrated development, a new icon for the city with its unique ferris wheel perched at 220 metres above ground on the 53rd floor of the building. M101 Skywheel will also boast one of the world's highest shopping malls, and Asia's first Planet Hollywood Hotel.

The Jalan Petaling project will be GSH's second residential project in Kuala Lumpur after the launch of Eaton Residences in Jalan Kia Peng, Kuala Lumpur City Centre, in 2016. To date, almost all of its 632 units, excluding units allocated for Bumiputra buyers, have been fully sold.

Chief executive officer of GSH Gilbert Ee said: "Given its strategic location in the famed Petaling Street area - known for its rich history, and as a shoppers' and foodies' haven - our project will target a different market who appreciates the conveniences of urban living within a rich, historical and cultural area."

In terms of accessiblity, the plot of land is near Pasar Seni and Masjid Jamek LRT stations, Kuala Lumpur station on the KTM Komuter, and Maharajalela station on the Monorail.

Tradewinds Corporation is a diversified conglomerate with key interests in property development and hospitality. It has a land bank of about 1,620 hectares across Malaysia and is one of the largest hotel owners in Malaysia with eight hospitality assets throughout the country.

GSH's shares ended flat at S$0.46 on Monday.