Would you be interested to buy real estate at a site which is less than 4km away from Sunway Pyramid Mall? The site is also just 4.8km away from Paradigm Mall. This is the piece of land occupied by Western Digital in Sungai Way Free Trade Industrial Zone (FIZ) and it’s now up for sale and Knight Frank is the appointed agent. I pass through this site every time my wife decided that we are bored of 1 Utama and wanted to shop in Sunway Pyramid instead. Yes, I think it’s in a very convenient location and has good access to virtually everywhere, really. It’s definitely within a mature neighbourhood too with lots of amenities too.
Article in thestar.com.my Knight Frank said that Western Digital has put up two parcels for sale – a 3.6-acre site and an 11-acre site. Both pieces flank the north-eastern and north-western corners of the Sungei Way FIZ, respectively. In 2018, a business publication put the price of the 11-acre site to be between RM160 – RM190 million. A source said, “It would definitely be higher than the figure (of between RM160mil and RM190mil). The price is still under consultation.” Knight Frank capital markets executive director Allan Sim said: “The Western Digital plants are undoubtedly among the most prominent and visible buildings along the Puchong-Damansara Expressway or LDP. It is rare for such a sizeable facility within an established FIZ to be made available to the market. Most existing FIZs within the Klang Valley are generally occupied.” He added, “This is an opportunity for large manufacturers looking to expand their footprint in Malaysia with high-grade facilities ready for immediate operation.” Article in thestar.com.my
If you notice that last statement by Sim, they are open to large manufacturers wanting to buy a plant to expand in Malaysia. I personally think that it will not be that attractive for a manufacturer to buy the plant unless of course the plant could be rejigged to fit them instead. This is because if I am a manufacturer, my margins will already be low and to pay RM190 million meant that the product I will be producing should be of very high value. Well, perhaps this is a right time for some huge manufacturers either from China or the US to think of diversifying into another plant within Malaysia? As for that probability for a developer to take over the site instead, then the Gross Development Value (GDV) will definitely be higher than RM1 billion and most probably billions… Land cost x 10 as assumption for GDV. Happy following.
Article written and edited by Charles. News article summarised by Dina Batrisyia.
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