State short of schemes for REIT companies

PENANG: Penang is short of high-value property schemes for real estate investment trust (REIT) companies to invest in.

Of the 87 properties held by the 13 REIT companies in the country, only two were in Penang, Regroup Associates Sdn Bhd executive chairman Chris Boyd told StarBiz at the sidelines of the NCER: Seizing The Opportunities symposium.

Chris Boyd

“The Penang Global City Centre (PGCC) project, which has an estimated gross sales value of RM25bil, therefore, provides new investment opportunities for REIT companies to come to Penang,” he said.

He said presently the bulk of Penang’s financial and commercial properties were still located in the heritage districts of George Town.

These areas were very congested, making access inconvenient, he said.

“PGCC provides a suitable site for future and existing commercial and financial properties buildings to be developed and relocated.

“The heritage districts can then be used for the development of heritage and tourism projects. There are many cities in China that have followed this pattern of development,” he said.

On the impact of PGCC on property prices of Penang, Boyd said over the next five years the property prices in the prime locations of the island would eventually hit RM500 per sq ft from the current RM250 per sq ft."

By The Star