However, he did not disclose when the group would make the move.
“We need to have sufficient properties or assets first as well as the right timing before we decide to start a REIT fund. We would also need to nurture the buildings until they have good yields,” he told PropertyPlus after a preview of its latest commercial development in Kelana Jaya, The Paradigm, recently.
WCT Land chairman Datuk Chua Sum Poo (third from left) with other board directors looking at a scale model of The Paradigm
Possible injections into the REIT include The Paradigm and the group’s other commercial developments in Klang, such as BBT One, comprising retail galleries and corporate office towers, the recently opened Aeon Bukit Tinggi shopping centre and BBT Hotel, which is scheduled for completion by 2009.
The Paradigm, which is located on a 12.37-acre leasehold tract, comprises four blocks of corporate office towers, 30 storeys of office suites and a shopping mall with a net lettable area of 700,000 sq ft. The developer plans to retain three office blocks and the shopping mall for recurring income.
“However, we are also open to the option of selling the office towers enbloc. We are actually currently in negotiations with both foreign investors and local institutions,” Tew added. According to him, the current market price for office space in Petaling Jaya ranges from RM450 psf to RM550 psf.
The project is targeted for launch in the second half of this year, with the mall scheduled for completion in 2010, while the whole development would be ready by 2013. It has a gross development value (GDV) of RM1.26 billion.
WCT Land has a total landbank of 1,369 acres in the Klang Valley and East Malaysia, with projects amounting to a GDV of RM5.2 billion of which RM2.9 billion has been launched. These include three Bandar Bukit Tinggi townships in Klang, and d’Banyan Residency in Sutera Harbour, Kota Kinabalu.
The group is also in negotiations for its first overseas venture in Vietnam, which is expected to be finalised by the first half of this year.
Tew said the group is constantly on the lookout for additional land that may have good potential for future development. “We would also consider going into joint ventures if our partners have any good land,” he added.
On the property market for 2008, he said that the office and retail property sector in the Klang Valley would be good, which is reflected by the current occupancy rates of 85% and 84% respectively. “We also believe the upper-middle to high-end residential market will do well. The easing of foreign ownership policies and the exemption of real property gains tax would boost the market further,” he said.
By theSun (by Yap Yew Jin)
More information about The Paradigm ...
Posts
No comments:
Post a Comment