KLCCP seeks tenants for new projects

Business & Markets 2013
Written by Afiq Isa of theedgemalaysia.com
Friday, 10 May 2013 10:11
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KUALA LUMPUR: Kuala Lumpur City Centre Property Holdings Bhd
(KLCCP) is focusing on the ongoing development of its prime assets,
Lot D1 and Kompleks Dayabumi, according to CEO Hashim Wahir.
The group is considering a mixed development on Lot D1 with 80%
comprising offices and 20% retail elements. Hashim said the group is in
the process of securing anchor tenants for Lot D1, which is located on a
1.4-acre plot opposite the Mandarin Oriental Hotel here.
“I can only give you the gross development value once we have
completed the master plan and know the quantum of rental our tenants
are willing to pay,” he said after the listing ceremony of KLCC stapled
Real Estate Investment Trust (KLCC REIT) on Bursa Malaysia
yesterday.
On redeveloping Kompleks Dayabumi, Hashim said there are several
plans, including re-positioning retail space and adding more office
space. A hotel was mooted as a possibility and the estimated time
frame given for the redevelopment is four years.
The landmark 35-storey Kompleks Dayabumi is the former
headquarters of Petroliam Nasional Bhd (Petronas). The tower was
completed in 1984 and features Islamic-inspired architecture on its
facade.
The two PROPERTIES [] are part of the newly structured KLCC stapled
REIT, which is the largest of its kind in Malaysia. The group’s portfolio is collectively valued at RM15 billion, and is three times
larger than its nearest REIT competitor.
Hashim is bullish about KLCC REIT’s prospects.
“We have received many enquiries from institutional fund managers. With our asset class, we expect to gain the attention of
high-quality investors. The investors will take notice of our commitment for a 90% distributable income payout to
shareholders,” he said.
Under the listing, Petronas Twin Towers, Menara 3 Petronas and Menara ExxonMobil are housed under KLCC REIT. Other
assets — Suria KLCC, Menara Dayabumi and Mandarin Oriental Hotel — remain under KLCCP.
The majority of KLCCP properties are in the KLCC precinct, which is well-known as the capital’s commercial, shopping and
entertainment hub.
The stapled structure of the REIT consolidates the existing KLCCP shares with KLCC REIT units, resulting in the company
being a single listed entity. The rationale behind the structure is to unlock value for existing shareholders while retaining the full
ownership of current assets.
It also enables the company to maximise the distributable income to shareholders by combining its dividend and the REIT’s
distribution per unit. KLCC REIT made strong gains on its first day of listing, rising nearly 7% in intraday trade. The stock
closed at RM7.68 yesterday, a 43 sen premium over the initial reference price of RM7.25.