Y&Y upbeat on returns from Shamelin Heights

Y&Y PROPERTY Development Sdn Bhd is confident of returns from its RM150 million Shamelin Heights Business Park in Cheras, Kuala Lumpur, as it is the only low-density industrial property in the area.

In fact, Singaporean institutional funds have approached to buy the park from the company but it’s not selling for now.

The company plans to lease the properties to industrial players and multinational firms, said Y&Y sales and marketing manager Mike Hue.

“We will have better bargaining power with the institutional investors for a REIT (real estate investment trust) when the business park is fully tenanted with good recurring income,” Hue told Business Times in an interview.

The project encompasses 30 units of three-storey semi-detached corporate industrial buildings and a three-storey standalone industrial bungalow on 5.04 hectares of freehold land in Taman Shamelin Perkasa.

Each unit has a built-up area of 8,500 sq ft to 20,400 sq ft except for the bungalow, which offers 7,800 sq ft.

“Land is scarce in Kuala Lumpur and cost has gone up. Industrial properties are limited in the market and under City Hall’s Kuala Lumpur 2020 City Plan, there will be no new area for industrial projects.

We believe we will benefit from this,” he added.

He also said the project will not be affected by rising raw material costs as it is half way developed.

Some 15 buildings have been constructed while 16 more will be ready for occupation by early 2009.

Shamelin Heights’ joint exclusive leasing agent BT Properties principal Billy Tan said the buildings are suitable for service centres, storage, warehouse and corporate offices, making it ideal for logistics, especially under rising fuel and operational costs.

The buildings are available for rent with monthly rates starting from RM18,800 to RM28,000.

Other industrial properties in the area are being leased at RM20,000 and above, Tan said.

About 15 units will have textile firms, a halal food processing company and a mattress maker, as tenants, among others.

“Shamelin Heights is not only a guarded business park. All tenants will have their own loading and parking bays,” he said.

The low-profile Y&Y is owned by the Yong family. It started as a textile manufacturer, trader and garment retailer in the 1980s. The company then diversified into property development in the 1990s.

By New Straits Times (by Sharen Kaur)