KLCC Property bullish on growth

KLCC Property Holdings Bhd is optimistic of positive growth in the current financial year ending March 2009 because about 70 per cent of its recurring rental revenue is fixed under three-year leases.

Group chief executive officer Hashim Wahir said KLCC Property has locked in a recurring rental revenue, which is revised upwards once every three years at a rental growth rate of three per cent.

"Despite a challenging business environment in the year ahead, we remain positive because our RM9 billion property assets are located in prime areas in the middle of the Kuala Lumpur city centre.

"Demand for offices in Kuala Lumpur remains strong and revenue from office property is stable. KLCC remains the preferred address for leading multinational corporations," Hashim told reporters in Kuala Lumpur yesterday after its shareholders' meeting.

KLCC Property, one of the world's largest integrated real estate developments, raked in a net profit of RM442 million in financial year ended March 2008 on the back of RM843 million revenue.

Office space contributes to 46 per cent of its total revenue, hotel 21 per cent, retail 27 per cent and management services six per cent.

All of its office space such as at Petronas Twin Towers and Menara Dayabumi is fully occupied, and retail space at Suria KLCC is 99 per cent occupied. Suria KLCC recorded 40 million visitors last year.

By New Straits Times (by Zaidi Isham Ismail)