KUALA LUMPUR (April 3): KLCCP Stapled Group does not intend to acquire new assets for the time being as the market remains weak.
Datuk Hashim Wahir, chief executive officer of the KLCC group of companies, said as the property market environment is expected to remain challenging in 2019, the group remains cautiously optimistic on its prospects for the year.
As it is, he said, the group's parent KLCC (Holdings) Sdn Bhd has enough gross floor area (GFA) to sustain the group's operations moving forward.
"KLCC Holdings currently has 25.7 million sq ft of GFA in the KLCC precinct area, of which only half has been developed to date.
"So we have enough reserve for now. We are holding it until the market improves," Hashim said at a media briefing after KLCC Stapled Group's annual general meeting.
KLCCP Stapled Group, comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust, owns and manages offices, retail and hotel properties and has a 60% stake in the Suria KLCC retail mall.
Commenting on the group's office segment which contributed 43% of overall revenue, Hashim said it remains stabilised with a 100% tenancy rate by Petronas Twin Towers, Menara ExxonMobil and Menara 3 Petronas.
The retail segment, which contributes 35% to the group's top line, currently has a 98% tenancy from its Suria KLCC mall.
When asked about the redevelopment of its former anchor tenant Parkson's spot, Hashim said it is progressing well. Suria KLCC Sdn Bhd is expected to bring in over 50 new tenants to replace the former department store.
"The first phase of the project is expected to finish by the fourth quarter of this year, and a full completion is set in 2020," he said.
TOP PICKS BY EDGEPROP
JALAN KEBUN BATU 4 1/2 JALAN KAMPUNG JAWA
Shah Alam, Selangor