THE Ascott group, an international serviced residence chain, could make RM20.1 million with the disposal of its 48 units out of 240 in the four-year-old Somerset Seri Bukit Ceylon serviced apartment in Kuala Lumpur’s Golden Triangle.
The units are up for sale en bloc with an indicative price of RM32 million.
Somerset Seri Bukit Ceylon, part of a mix-use complex, is about 10 minutes’ walk to the Pavilion KL shopping mall in Bukit Bintang and Suria KLCC in KL City Centre. It is also near major hotels and office buildings along Jalan Sultan Ismail.
Tiffany Goh, a director of YY Property Solutions (Valuation) Sdn Bhd, the exclusive marketing agent for the 48 units, said obtaining a gross yield of more than 12 per cent a year and a nett yield of over five per cent would not be a problem.
She said the 25-storey building is managed by a reputable serviced residence operator and the occupancy rate has always been high, at about 90 per cent, over the past three years.
The 48 freehold residences with individual strata titles are located on the fifth to eight floors and have access to various business and leisure facilities provided.
They comprise fully furnished studio, one- and two-bedroom units ranging between 500sq ft and 1,200sq ft and have a total nett saleable area of 39,000sq ft.
Ascott bought the 48 units including 24 car-parking lots for RM11.9 million from United Malayan Land Bhd in March 2003.
Back then, its wholly-owned UM Residences Sdn Bhd and Ascott International Management (M) Sdn Bhd had signed an agreement to jointly operate serviced residences under the Somerset brand in KL. The Ascott group was to manage 96 of the total 247 units. The group owned half of the units it would be managing.
At that time, buyers of the other 48 units came under a compulsory leaseback agreement that guaranteed returns of six per cent for the first three years.
The units were priced at a minimum of RM217,880 each in 2004. Today, they are pegged at an average rent of RM820psf.
Source: NST
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