PETALING JAYA: Urusharta Cemerlang (KL) Sdn Bhd, the developer of Pavilion Kuala Lumpur, has started work on the piece of land it bought for a record RM7,209 per sq ft three years ago, to put up a 50-storey block consisting of 39 floors of residential units and 10 floors of retail space, according to a source.
The whole development will have a gross development value of RM800mil, with the residential units priced from around RM2,000 per sq ft. The retail portion is not for sale, and will be leased out, the source added.
The source also said the retail space would have a net lettable area of 225,000 sq ft while the residential portion would have a net saleable area of 310,000 sq ft. The residential units of this yet-to-be-named development will range from 700-1,200 sq ft.
“The residential units are expected to be launched by year-end, and there are ready buyers. This development will be directly connected to Pavilion KL and Fahrenheit 88 (a shopping mall in Bukit Bintang, KL),” said the source.
The land for this project measures 29,127 sq ft and is situated between Pavilion KL and the Grand Millennium Kuala Lumpur hotel.
Urusharta Cemerlang is said to be controlled by Datuk Desmond Lim Siew Choon, who is said to have big plans to transform the Pavilion KL mall stretch right up to Chulan Square and the Seri Melayu Restaurant into a new “Orchard Road”.
Lim is also behind the development of the Banyan Tree Signatures Pavilion residences and the upcoming Harrods Hotel, which is expected to be launched next year.
This would ultimately mean that Lim will control an enormous piece of development stretching from Fahrenheit 88 to Seri Melayu.
The source said Lim planned to create a walkway that would connect Pavilion KL, Fahrenheit 88, Banyan Tree Signatures and Harrods Hotel and transform it to a vibrant retail street.
“Lim was very encouraged by the overwhelming sales of Pavilion Banyan Tree. It recorded close to a 100% take-up rate for the 441 units launched. While the average selling price for Banyan Tree was RM2,000 per sq ft, it even managed to transact at a record RM3,000 per sq ft for one of the smaller units,” said the source.
Lumayan Indah Sdn Bhd is developing Banyan Tree Signatures on 1.46 acres at the junction of Jalan Conlay and Jalan Raja Chulan and is opposite Pavilion KL. Qatar Holding LLC is said to have a 49% stake in Lumayan Indah, while Lim holds the remaining 51%.
Meanwhile, the Harrods Hotel will be located right between Pavilion KL and Banyan Tree Signatures.
In 2010, Lim caused a sensation when he paid a record RM7,209 per sq ft or RM210mil for the tiny parcel of land next to Pavilion KL mall.
The land was acquired by Urusharta Cemerlang from CDL Hotels (M) Sdn Bhd, a unit of London-based Millenium & Copthorne Hotels plc.
Millenium & Copthorne is a company controlled by Singaporean billionaire Kwek Leng Beng through his 53% stake in Singapore-listed property and hotel group City Developments Ltd.
With the “Orchard Road” plan unveiled, it begins to make sense why Lim forked out such a hefty sum for that tiny piece of land back then.