Saudi Arabia’s Alrajhi family is once again seeking a buyer for its Wisma Mont Kiara office building in Kuala Lumpur, with sources indicating that the asking price will be revised from RM150 million to RM130 million to better align with market conditions.
Wisma Mont Kiara is located in the affluent Mont’Kiara township and has been on the market since early this year.
The 16-storey property, located along Jalan Kiara in the affluent Mont’Kiara township, has a net lettable area of 181,992 sq ft and currently enjoys an occupancy rate of more than 95%. Its tenants include the Malaysian French Chamber of Commerce and Industry, co-working operator Common Ground, and technology firm Concentrix. Rental rates at the building are said to range between RM4.50 and RM5.50 psf.
Wisma Mont Kiara forms part of the 1 Mont Kiara integrated development, which also comprises the 30-storey Menara 1 Mont Kiara office suites and the 1 Mont Kiara Mall retail podium. The development was completed in 2010.
Rahim & Co International Sdn Bhd has been appointed as the exclusive marketing agent for the transaction. While confirming the appointment, a spokesperson declined to comment further on the family’s divestment plans.
At the earlier asking price of RM150 million, the valuation worked out to about RM824 psf — nearly 23% higher than the RM670 psf the family paid when acquiring the building from Singapore-based ARA Asset Management Ltd in 2018 for RM122 million. At the revised price of RM130 million, the valuation comes down to RM714 psf, which a local agent described as “more realistic, given current market conditions and the upgrading required for a 15-year-old building”.
The purchase in 2018 was carried out via R J Seven Sdn Bhd, making it the Alrajhi family’s maiden property acquisition in Malaysia. Corporate records show that R J Seven fully owns 1MK Office Sdn Bhd, the holding company of Wisma Mont Kiara, with 11 family members each holding equal stakes of 9.09%.
Financial data from CTOS indicates that 1MK Office Sdn Bhd generated RM6.1 million in revenue and RM2.15 million in net profit for the financial year ended Dec 31, 2023.
The Alrajhi family is closely linked to Al Rajhi Bank of Saudi Arabia, one of the world’s largest Islamic banks by assets, and its Malaysian subsidiary Al Rajhi Bank Malaysia, which entered the market in 2005 as one of the first Middle Eastern lenders to establish operations here.
Strategically located between Kuala Lumpur city centre and Damansara, Wisma Mont Kiara enjoys connectivity via major highways including the Sprint Expressway, NKVE, Penchala Link, Kerinchi Link and Jalan Duta. A mass rapid transit (MRT) station has also been planned adjacent to the site.
The Mont’Kiara area continues to attract institutional investors. Just last year, Sunway REIT acquired the seven-storey Sunway 163 Mall (formerly 163 Retail Park), located down the road from Wisma Mont Kiara, for RM215 million from YNH Property Bhd. The mall joins Sunway REIT’s extensive portfolio, which includes Sunway Pyramid Mall, Sunway Resort Hotel, multiple hypermarkets and Sunway Kluang Mall.
