KLCCP may re-evaluate Kompleks Dayabumi Phase 3 project

KUALA LUMPUR (Jan 24): KLCCP Stapled Group may re-evaluate the development components of Kompleks Dayabumi Phase 3 if the group does not manage to secure an anchor tenant.

Speaking on the sidelines of Invest Malaysia 2018, KLCCP Stapled Group chief executive officer Datuk Hashim Wahir told reporters that management is currently working “very hard” on finding an anchor tenant on board for the project.

“We are looking at Dayabumi Phase 3. We have to look for [an] anchor tenant. Once we get it, we will start this year,” he said.

Kompleks Dayabumi Phase 3, which has a gross development value of RM1 billion, is a mixed-use project including retail, office and parking facilities in the heart of Kuala Lumpur’s historic district. The project provides 141,760 sq m of above-ground space plus 34,132 sq m of below-ground parking.

When asked about new investment property, Hashim said it would be more suitable for KLCCP Stapled Group to build its own greenfield project instead of acquisition.

“We have always been looking, but our total assets under management have already reached around RM17 billion to RM18 billion, so if we want to add 10% for example, it means we have got to buy property worth around RM1.7 billion. We have been looking around, but we couldn’t find one, and it must give capital and yield appreciation,” he said.

On the retail mall division, Hashim said he is expecting a consolidation within the industry this year given the disruption from online shopping.

“In 2018, I think within the Klang Valley, there will not be much new additional supply. There will be a consolidation in light of the concern from online shopping.

“Depends on which kind of mall, I think there is still [a] market for fast-moving goods. The luxury [brands] are consolidating, to premium malls, which we will ensure that we will have the right relationship and ability to maintain our mall, so that we will continue to have higher footfall, sustain and even grow our annual turnover,” he said.

KLCCP Stapled Group owns and manages office, retail and hotel properties and has a 60% stake in Suria KLCC retail mall. The group comprises KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust.

Hashim said the immediate focus for the group this year is on understanding customers’ need, in order to provide the right merchandise and products for all categories of customers.

This article first appeared in The Edge Financial Daily, on Jan 24, 2018.

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