“Chin Hin and Fiamma to develop RM1.03 billion KLCC 2 Residence project near Suria KLCC, featuring 924 serviced apartments and retail units. Project slated to start in 2025.“
Kuala Lumpur, 18th Apr 2025, 01.13pm – Chin Hin Group Property Bhd is joining forces with Fiamma Holdings Bhd to develop a landmark RM1.03 billion mixed-use project near the iconic Kuala Lumpur City Centre (KLCC), marking a strategic expansion into one of the city’s most prestigious real estate zones.
The project, KLCC 2 Residence, will be developed by Chin Hin’s wholly owned subsidiary, BKG Development Sdn Bhd, in a joint venture with Fiamma’s subsidiary, Sinaran Urusjuta Sdn Bhd, which owns the 1.88-acre leasehold commercial land slated for the development.
Key Project Details
Under the joint venture agreement, BKG Development will acquire a 70% stake in Sinaran Urusjuta for RM1.17 million, while Fiamma will retain a 30% interest in the project company.
Scheduled to begin in Q2 2025, the development is expected to reach completion by Q1 2032.
KLCC 2 Residence will feature:
- 924 serviced apartment units
- Five retail units
- A three-storey facility podium
- Mechanical floors
- A dedicated car park block
Strategically located within walking distance of Suria KLCC, KL Tower, and the KL Forest Eco Park, the development is positioned to attract both local and international investors seeking premium city-centre living.
Financial Terms and Structure
As part of the agreement, Fiamma will receive 442,000 redeemable preference shares in BKG Development, valued at RM442,000. BKG Development will also pay RM146.1 million to Fiamma, covering outstanding obligations of Sinaran Urusjuta and the redemption of specific shares. The final amount may be adjusted upon project completion.
The joint venture will be financed through a combination of:
- Proceeds from unit sales
- Bank borrowings
- Internally generated funds
Chin Hin will oversee and manage the full financial and operational execution of the project.
Corporate Governance and Oversight
The transaction is deemed a related-party deal as Chin Hin and Fiamma share common substantial shareholders and board members. To safeguard minority shareholder interests, Fiamma has appointed Eco Asia Capital Advisory Sdn Bhd as an independent adviser for the joint venture.
Following the completion of the agreement, Sinaran Urusjuta will be reclassified as an associate company of Fiamma Holdings Bhd.
