Avaland Acquires Prime KL Land for RM900M Mixed-Use Project Near PWTC

Avaland Secures Landmark Jalan Putra Site for RM900 Million Project

Kuala Lumpur’s real estate landscape continues to evolve with a notable acquisition by Avaland Bhd, which has entered into a conditional agreement to purchase a 3.194-acre land parcel along Jalan Putra for RM148.8 million. The strategic plot, acquired from Tanahku Holdings Sdn Bhd, a subsidiary of Tan Chong Motor Holdings Bhd, is earmarked for a mixed-use commercial development with an estimated gross development value (GDV) of RM900 million.

Prime Location with Excellent Connectivity

This new site is a rare gem in central Kuala Lumpur, situated:

Just 100 metres from the PWTC LRT station
Only 550 metres from the Chow Kit Monorail station
Surrounded by key landmarks like:
- Sunway Putra Mall
- World Trade Centre Kuala Lumpur
- Chow Kit Road Market

Avaland noted that the site is located within a “well-established neighbourhood,” offering strong foot traffic, a dense urban population, and excellent public transport connectivity—making it ideal for commercial and investment-driven developments.

What Is Avaland Planning?

Avaland’s CEO, Apollo Bello Tanco, described the project as part of a long-term strategy to strengthen the group’s footprint across Klang Valley. The upcoming development will likely feature a blend of retail, office, and possibly serviced residences or SOHO-style suites—targeted at both owner-occupiers and yield-seeking investors.

According to Avaland, this new asset will allow the company to introduce “investment-focused product offerings in a prime urban location,” likely catering to young professionals, SMEs, and property investors looking for high-return assets in central KL.

Strategic Klang Valley Expansion: Two Deals in One Month

This Jalan Putra deal follows another recent land acquisition by Avaland earlier this month:

2.17-acre plot in Section 13, Petaling Jaya
Acquired from Comit Communication Technologies (M) Sdn Bhd, a Tan Chong-linked company
For RM49 million
Planned GDV: RM320 million

Together, both acquisitions are projected to contribute a combined GDV of over RM1.2 billion, forming a solid base for Avaland’s next phase of earnings growth.

Funding and Timeline

Avaland will finance the Jalan Putra land deal through a combination of internal reserves and bank borrowings, with the transaction expected to complete by Q1 2026.

This measured approach to funding reflects Avaland’s focus on capital management, particularly amid a cautious but recovering property market.

Tan Chong’s Strategic Divestment

For Tan Chong Group, this disposal represents a shift towards capital unlocking and operational focus. The company expects to record a RM14.7 million gain, with proceeds going towards:

Working capital needs
Strategic reinvestments
Short-term money market placements for yield while awaiting redeployment

This move is consistent with Tan Chong’s realignment towards more streamlined operations and capital optimisation.

Why This Matters for KL Property Market Observers

This deal signals several key trends worth watching:

1. Transit-Oriented Development (TOD) Is Still King

Locations with easy access to LRT and Monorail stations—especially within 5–10 minutes’ walk—are top picks for developers. It reflects rising demand from urban dwellers who prefer car-free mobility and proximity to work and retail hubs.

2. Revival of Commercial Developments in City Centre

After years of focus on affordable housing and suburban projects, developers are pivoting back to commercial developments in mature urban precincts, where land is scarce but demand is resilient.

3. Collaboration and Land Recycling Between Sectors

The deal between Avaland and Tan Chong shows how automotive-industrial players are monetising urban assets, passing the baton to property developers for urban regeneration.

Looking Ahead: Is Jalan Putra the Next Investment Hotspot?

With Sunway Putra Mall and the KL World Trade Centre within walking distance, Jalan Putra is poised to become an even more vibrant mixed-use corridor. As this Avaland project progresses, it could: