Shell Malaysia HQ on sale for RM140m

The 25-year-old building, with a total net lettable area of 212,867 sq ft, is on offer for sale by private treaty as opposed to an auction.

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Kuala Lumpur: Bangunan Shell Malaysia in Damansara Heights has been put up for sale for an estimated RM140 million. The 25-year-old building, which has been Shell Malaysia's headquarters ever since, is on offer for sale by private treaty as opposed to an auction. The building is a 12-storey tower with a basement car park and is adjacent to Wisma Chase Perdana on Changkat Semantan. It has a total net lettable area of 212,867 sq ft. According to property consultant Rahim and Co's website, it had been hired as the exclusive marketing agents for the office building by the owners, Haluan Gigih Sdn Bhd. Officials from Rahim and Co declined to comment. Shell Malaysia occupies the entire building on a leaseback arrangement which expires on September 15 2012, with the option to extend the tenancy on a quarterly basis up to September 15 2013. Shell, in 2009, said that it planned to move to 348 Sentral where it had signed as an anchor tenant under a 15-year lease. It is understood that the purchaser will likely be able to collect rent up until early 2013. The new owner would also have a year to look for a new tenant. Rental in the area hovers around RM4 to RM4.50 per sq ft, including service charge. It is a freehold building with a land area of 124,173 sq ft. There are also badminton and squash courts in the building. Unlike most landlord and tenants agreements, where the landlord usually spends on renovation and the upkeep of the building, Shell has, over the years, ploughed in money for the upgrade and maintenance. Bukit Naga Development Sdn Bhd originally invested RM69.4 million in the property between 1985 and 1987. In 2003, Exclusive Skycity Sdn Bhd bought it from Bukit Naga for RM79 million. According to a filing to the stock exchange, Exclusive Skycity is wholly-owned by Metacorp Bhd (which was delisted in 2009). Metacorp, in turn, is a wholly-owned unit of MTD Capital Bhd. In 2009, MTD Capital entered into a sale and leaseback agreement with Haluan Gigih for RM105 million. Haluan Gigih is a wholly-owned subsidiary of Alloy Consolidated Sdn Bhd which was a major shareholder of MTD. MTD Capital was delisted in May 2011.