Wisma MCA, the current MCA headquarters, will be demolished to make way for a new 70-storey tower, according to a report by The Edge.
This demolition is part of a redevelopment plan by MCA, a founding member of the Alliance coalition and its successor, BN.
The Edge cited proposal documents submitted to the Kuala Lumpur City Hall (DBKL). The report was also published on sister portal The Edge Property.
"The political party’s earlier proposal submitted to DBKL revealed that the plans were for a single tower with office space, 253 hotel rooms, 46 serviced apartments and seven storeys of underground parking; and conditional approvals from the authorities were obtained in November.
"However, a new proposal was given on July 13, which involves tearing down the 23-storey headquarters and erecting a 70-storey tower with 'an eight-storey basement carpark, a 328-room hotel that will occupy 24 floors, and a two-storey sky lounge, and restaurants on the 68th and 69th floors."
The plans were approved by DBKL on Aug 2.
Analysts told The Edge that it was a "good idea" to unlock the value of the asset.
"Wisma MCA is located in a very strategic and prominent location in Kuala Lumpur City Centre. It is within walking distance of the Ampang LRT Station as well as the Ampang Park MRT Station. Hence, accessibility is exceptional.
“However, the timing is not conducive as the country is experiencing an economic slowdown, with the property market experiencing an oversupply in high-rise apartments/condominiums around the Klang Valley,” said LaurelCap executive director of valuation Stanley Toh.
ExaStrata Solutions Sdn Bhd's chief real estate consultant Adzman Shah Mohd Ariffin, meanwhile, was quoted as saying that the current 23-storey Wisma MCA did not optimise its current development potential, and likewise warned of an oversupply in the city centre.