KSK taps Kempinski for Conlay project

By Sharen Kaur
Published in NST on April 16, 2014

KUALA LUMPUR: KSK Group Bhd will bring Europe's oldest luxury hotel outfit, Kempinski, to its RM4 billion Jalan Conlay project, here, adding another opulent accommodation to the city, said sources.

    Formerly known as Kurnia Asia Bhd, the group is developing a mixed-use project on a 1.6ha site in Jalan Conlay, next to Prince Hotel & Residence.

    KSK acquired the land for RM568 million from Suasana Simfoni Sdn Bhd in a deal that was completed last month.

    The project will be developed by its subsidiary, KSK Land Sdn Bhd, and  will feature three towers and a 200,000 sq ft retail podium.

   The sources said the tallest tower is 60-storey high and will house the five-star hotel and serviced apartments, which are expected to be managed by Kempinski.

    The other two blocks, standing at 50 and 55 storeys each, will comprise luxury condominiums.

     According to the sources, KSK had considered either Kempinski and Nevada-based gaming and hospitality company, MGM Resorts International, to manage the hotel and serviced residences.

     Kempinski is an international hotel chain founded in Berlin, Germany, in 1897.

     It is majority controlled by Thailand's Crown Property Bureau, a Royal Thailand authority responsible for administering the properties of the Royal House of Thailand.

    Kempinski operates around 80 historic grand hotels, city hotels, resorts and residences in 30 countries in Europe, the Middle East, Africa and Asia.

    KSK Land  will develop the Conlay project starting year-end. The project is slated to be completed by 2020.

     "KSK Land will also launch the condominiums by year-end. No price is fixed yet, but it will surely be above RM2,500 per sq ft.

    "There will be competition from Banyan Tree residences and Harrods Hotel, which are also under construction in Jalan Conlay.  KSK Land, however, is bullish on property sales and is targeting 50 per cent local investors," the sources said.

      The KSK group is expected to use part of the RM1.63 billion obtained from the sale of its core insurance business, Kurnia Insurans (M) Bhd, to AmG Insurance Bhd in September 2012, to fund the project's initial stage.

     The group, which currently focuses on growing its two general insurance operations in Indonesia and Thailand,  ventured into property development last year.