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PETALING JAYA (April 29): Avaland Bhd is expanding its footprint in Kuala Lumpur's luxury residential segment, with its indirect wholly-owned subsidiary Nexus Advertising Sdn Bhd (NASB) signing a conditional sale and purchase agreement (SPA) yesterday (April 28) to acquire three adjoining parcels of freehold development land in the prestigious Taman U-Thant embassy enclave for RM86,039,000, according to its announcement on Bursa Malaysia.
The land, measuring approximately 7,612.63 sq m in aggregate, is located within Seksyen 89A, Bandar Kuala Lumpur, and is currently zoned for residential use with no ongoing activities or development.
An independent valuation by CBRE WTW Valuation & Advisory Sdn Bhd dated March 26, this year placed the market value of the land at RM88 million — meaning Avaland is acquiring the site at a slight discount to its independently appraised value.
The vendor is Tong Ah Company Sdn Bhd (TACSB), a private company principally engaged in general trading, plantation and property investment, and controlled by the Tay family through Tay Miang Guan & Company Sdn Bhd, which holds a 99.97% stake.
Avaland intends to develop a high-rise residential project on the land, with a preliminary estimated gross development value (GDV) of approximately RM700 million.
Detailed development plans, total development costs, funding mix and expected profit margins are yet to be determined, pending submission and approval of the development plans.
Why U-Thant
Taman U-Thant is among Kuala Lumpur's most exclusive residential addresses — a low-density, high-end enclave synonymous with the diplomatic community, characterised by large bungalow plots, mature trees and a quiet, private atmosphere increasingly rare in the inner city.
The land sits approximately 2km from Kuala Lumpur City Centre (KLCC) and 10km from KL Sentral, with direct access via Jalan Ampang, Jalan Tun Razak and the AKLEH Highway, giving it seamless connectivity to KLCC and Tun Razak Exchange (TRX).
The surrounding area is supported by Prince Court Medical Centre, the Royal Selangor Golf Club, several reputable international schools and premium lifestyle amenities.
Avaland said the limited supply of new large-format residential developments within the vicinity presents a compelling opportunity to introduce a differentiated high-end residential product catering to discerning buyers seeking large luxurious living spaces, exclusivity and proximity to the city centre.
The acquisition builds on Avaland's earlier luxury residential track record, citing the strong market response to its Aetas Damansara and Aetas Seputeh developments as the foundation for this next move upmarket.
Payment structure and conditions
The purchase consideration is payable entirely in cash, structured as follows: an earnest deposit of RM1,720,780 was paid to the vendor on March 25, this year; a balance deposit of RM4,301,950 is payable within five business days from the SPA date; a RPGT retention sum of RM2,581,170 is to be remitted to the Inland Revenue within 60 days from the Foreign Approval date; and the balance purchase consideration of RM77,435,100 is payable within three months from the unconditional date, with a 30-day extension available subject to 8% per annum interest on any outstanding balance.
The SPA is subject to several conditions precedent to be fulfilled within six months from the SPA date, including: the vendor obtaining a Registrar's letter of no objection and removing the existing Registrar's Caveat on the land (originally registered in March 2019); the purchaser obtaining either a no-objection letter or a confirmation that approval is not required from the Ministry of Economy of Malaysia; and the purchaser obtaining written approval from the State Authority under Section 433B of the National Land Code — the Foreign Approval requirement, given Avaland's corporate structure as a foreign-owned entity under the NLC.
The acquisition will be funded through a combination of internally generated funds and bank borrowings, with the exact funding mix to be determined later.
The highest applicable percentage ratio under Bursa Malaysia's Main Market Listing Requirements is 8.32%, based on the Group's audited financials for FY2024.
No directors or major shareholders of Avaland have any direct or indirect interest in the proposed acquisition. Completion is targeted for the first quarter of 2027.
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