Greater KL development negative for property and REITs, says HLIB Research
KUALA LUMPUR (Dec 14): The Greater Kuala Lumpur development has been deemed as being negative for the property sector and real estate investment trusts (REITs) by Hong Leong IB Research.
In a note today, the research house said several catalytic developments are emerging in Greater KL.
It said these are TRX, Warisan Merdeka, BBCC, Bandar Malaysia, Kwasa Damansara and CCC.
It said these six catalytic developments have a total gross development value of at least RM275 billionn, spanning over 3,355 acres of land.
HLIB Research said govt participation as master developer, be it directly (e.g. MoF) or indirectly via its related entities (e.g. EPF and PNB).
It said integration to public transport networks provides an edge as Transit Oriented Developments.
“Positive for contractors as these developments would offer RM137 billion worth of jobs to undertake.
“Negative for property as traditional developments will face competition from the catalytic ones, especially in KL.
“Negative for REITs as rental reversions will be capped with the influx of more malls and office space,” it said. — theedgemarkets.com
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