Malaysia’s two most significant real estate transactions in Q3 revealed
Both deals involved NS Corporation.
The value of major real estate transactions in Malaysia in Q3 2022 increased sharply by 37% YoY (RM2.1 billion: Q3/2021); and a 48% increase QoQ to RM2.9 billion (RM1.9 billion: Q2/2022), according to a Savills report.
Furthermore, this quarter witnessed the single highest quarterly transaction value in the past two years, mainly attributed to five high-value deals, which accounted for 66% of the quarter’s total transaction value.
Here’s more from Savills:
The two most significant transactions of the quarter were in Negeri Sembilan in Malaysia Vision Valley, (MVV), both involving NS Corporation. In the first deal, Matrix Concepts Holdings Bhd acquired 1,382.2 acres of potential agricultural land from NS Corporation for RM460 million, while in the other deal, NS Corporation purchased freehold agricultural land parcels of 1,281.8-acres for RM445 million from Sime Darby Bhd. The latter site is proposed to be an industrial and mixed development to be known as ‘NS International Tech Park’.
In Greater KL, UEM Sunrise Berhad, via a subsidiary, acquired a 6.4-acre commercial site from Nipponkey Sdn Bhd for RM384 million. The land has been approved for mixed-use development, and the purchase price will be satisfied partially via a land swap, for which Nipponkey also entered into 16 Disposal and Land Transfer Agreements (“DLTAs”) with UEM Sunrise for land parcels totalling 107.82 acres worth RM148 million located in Tanjung Kupang, Johor.
Also in Greater KL, LONGi (Kuching) Sdn Bhd acquired a 140-acre industrial land parcel in Serendah (Selangor) for RM304 million, while UDA Holdings Bhd purchased a hotel block in KL’s Bukit Bintang City Centre for RM295 million, to be operated under UDA’s Ancasa hotel brand. Menara Weld and the Sheraton Imperial Hotel, both of which are rumored to have been in discussions for months, have reportedly been sold as well, although exact transaction values have not yet been made public.
It is also encouraging that while investor interest in the industrial/logistics sector has remained healthy, other sectors (especially commercial land and assets, which accounted for 40% of total deal value) appear to be gaining momentum once again. As the post-pandemic recovery accelerates, it is expected that markets will likely witness a further boost in investor confidence and transactional activity.