Saturday, June 30, 2007

Bandar Raya plans RM1b REIT

Bandar Raya plans RM1b REIT


By BUSINESS TIMES

BANDAR Raya Developments Bhd (BRDB) may set up a property trust with assets worth more than RM1 billion in three years.

The real estate investment trust (REIT) will feature commercial properties in Kuala Lumpur and Johor, chief executive officer Datuk Jaganath Sabapathy said.

"The REIT will enable us to unlock the value of our assets. By 2009, we will have a million sq ft of prime commercial space. If we decide to launch a REIT, it would be in 2010," he told Business Times after a media briefing on the development of CapSquare in Kuala Lumpur yesterday.

Jaganath said the REIT will include assets such as the Bangsar Shopping Centre (BSC), properties at CapSquare, commercial components in The Troika and Permas Jaya Mall in Johor.

He also said that BRDB expects to post better earnings this year, driven by sales at CapSquare, The Troika and One Menerung. The latter two are luxury condominiums in Kuala Lumpur.

CapSquare, sprawled over 6ha, comprises two 40-storey office towers; two high-rise condominium blocks; four signature office buildings and a four-storey retail centre; two eight-storey office towers; and an entertainment, fitness and food village, known as e.centre.

The estimated gross development value (GDV) of the project is around RM2 billion, and it is expected to be completed by 2010.

Jaganath said the gross development cost of the project is expected to be around RM1.5 billion due to an eight-year delay to finish the job.

CapSquare was stalled in 1997 because of the financial crisis and other issues.

It was relaunched in 2005. BRDB has a 70 per cent stake in the project, with the rest held by UDA Holdings Bhd.

"We plan to build a hotel in CapSquare in five years. Next year, we will launch two luxury condominium projects in Bangsar with an expected GDV of RM1.2 billion," Jaganath said.

No comments:

Post a Comment