GSH to buy prime Jalan Petaling plot in Kuala Lumpur for S$55m

PROPERTY developer GSH Corporation is investing 164.5 million ringgit (S$55.2 million) for a 50 per cent stake in a prime 1.4-hectare plot in Kuala Lumpur's Chinatown precinct of Jalan Petaling.

The company on Monday said 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 50.1 million ringgit 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 mall, and Asia's first Planet Hollywood Hotel.

GSH shares closed flat at S$0.46.