Chairman Tan Sri Megat Najmuddin Megat Khas said office space in the building was currently rented out between RM3.50 and RM4.50 per sq ft and this would be increased to RM6 per sq ft.
He said the redevelopment activities would result in a temporary decline in the rental income from the group's property division.
"Barring any unforeseen circumstances, we expect to see rental income to decline by RM8 million annually, but we are optimistic that we can recover and improve our profitability when the Menara Tun Razak project is completed in four years' time," Megat Najmuddin told a press conference in Kuala Lumpur yesterday, after the company's annual general meeting.
Tradewinds will also construct a 40-storey office building, next to the Menara Tun Razak, later this year which will be crucial for the company's property development business.
"The development would enhance the area in terms of asethetics and value, increase our profile as a major high-end urban property developer, attract new and reputable clientele as well as create spill-over effects for surronding areas," Megat Najmuddin added.
He also said the company planned to set aside RM70 million to refurbish three other hotels under its wings, PJ Hilton, Hilton Kuching and Pelangi Langkawi.
By Bernama
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