PETALING JAYA: Andaman Group expects full tenancy of retail lots on the first two floors of its six-storey Cova Square in Kota Damansara by the year's end.
Vincent Tiew, general manager of Andaman unit Pharma Exel Sdn Bhd said the interest in Cova Square had been “very encouraging'' since registration for rental of the 64 retail lots opened last month. To date, 10 tenants, including Secret Recipe, have confirmed their bookings.
“We are in discussion with another 20 potential tenants and many new retailers have shown interest in our available units,” Tiew told StarBiz.
About 50% of the space has been allocated for food and beverage operators and the balance is targeted at service-oriented retailers such as convenience stores, bookstores, banks, pharmacies and Internet cafes.
Rental rates for Cova Square retail lots range from RM3 to RM8 per sq ft, inclusive of maintenance charges for net built-up areas ranging from 1,324 to 2,613 sq ft.
Under the scheme, Andaman Group will lease back the units sold to buyers and manage the projected monthly rental collection of about RM450,000, or RM5mil a year, at current rental rates, which is more than the 8% guaranteed return for Cova Square buyers.
“The return on investment is very high and would be realised quickly when Cova Square opens for business before the first half of next year,” Tiew said, adding that Cova Square was now 75% completed.
Cova Square retail lots, launched in August last year, is located near the Sri KDU Smart School, SEGi College and the soon to-be-opened Tropicana Medical School.
The developer is in the midst of launching another commercial project, Cova Corporate City, with a gross development value of RM400mil.
The project, now open for registration, comprises 14 office blocks with a total net built-up space of 800,000 sq ft. The offices of between four and 11-storeys will be sold en bloc.