Setia Haruman RM20b investment plan on track

CYBERJAYA: Cyberjaya's flagship developer Setia Haruman Sdn Bhd's RM20bil investment plan is on track and now it wants to attract 10 high-impact companies to set up operations in the ICT hub of Malaysia.

Under its RM20bil investment plan over the next five years, the developer said RM2bil had been invested in the first half of this year.

Setia Haruman's strategy is to develop purpose-built projects that will fulfill the needs of foreign companies seeking a footing in Cyberjaya.

High-impact companies are defined as organisations that can offer high-value employment, be it local or multi-national companies.

Chairman Tan Sri Mustapha Kamal Abu Bakar said at a media conference here yesterday that Cyberjaya developments needed a paradigm shift from merely developing commercial buildings to creating a liveable environment for the companies' staff.

“We have come to a tipping point where we cannot get investors to come in if we do not provide facilities for them,” he said, noting that Setia Haruman will take on a “campus development” concept.

Setia Haruman intends to build residentials, offices, commercial units and entertainment outlets.

“Cyberjaya is going to be a vibrant place in the next five years and the whole development needs to grow organically,” Mustapha said.

He added that the companies would provide high-value employment which “if happens, the dream of become a high-income population will be realised”.

Mustapha said Setia Haruman would lease the commercial buildings and stand to gain from a recurring income stream. It will also sells some units to real estate investment trusts.

“Due to uncertainties, investors prefer to come and rent (buildings),” he said, adding that the rental should bring in 7% to 8% annual yield, making it attractive to REITs.

Mustapha said the rental for Setia Haruman's commercial property in the area was currently US$5.80 per sq ft, including service charge and maintenance.

Setia Haruman has another 1,000 acres of land to develop. It has developed 3,000 acres while another 3,000 acres allocated for utilities.

In total, Setia Haruman has developed RM10bil worth of projects in Cyberjaya.

Meanwhile, International Trade and Industry Minister Datuk Seri Mustapa Mohamed, who was also present, said that the place needed to be further promoted internationally.

The minister said there were 50,000 people living and working in Cyberjaya now compared with 20,000 in 2004.

“There are also over 300 companies here such as HSBC, Dell, Shell, HP which are some of the major employers. This is the place to develop if we are talking about high-value jobs for Malaysians,” he said.

Mustapa said the ministry would work together with Setia Haruman to promote the world-class facilities and infrastructure to global companies to locate their operations here.

By The Star