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Hap Seng's flagship industrial project to be completed 1Q2021

KUALA LUMPUR (July 29): Hap Seng Consolidated Bhd is developing its first flagship industrial park which will be completed in the first quarter of 2021.

In a media briefing yesterday, Manfred Weber, the property management director of Hap Seng Land Sdn Bhd shared that Hap Seng Industrial Hub is a 20-acre mixed industrial and commercial development located in Seksyen 23, Shah Alam, Selangor. It will comprise detached and semi-detached units for industrial offices, flatted warehouses and a commercial centre targeted at tenants such as F & B, banks, clinics and other services. 

The industrial park which has a gross development value (GDV) of RM500 million, will have 1.38 million sq ft of net lettable area.

“This is our first industrial park venture. We will be owning, leasing and managing the entire project. So far, we have gotten three confirmed tenants,” Weber shared.

Meanwhile, Hap Seng which is also building a hotel in Kota Kinabalu (KK), Sabah and another in Dutamas, Kuala Lumpur, will go ahead with their construction and plans for the two hotels in spite of Covid-19. According to Weber, Hap Seng has partnered Hyatt Hotel to operate the hotels. 

“We believe the Covid-19 is not a long-term thing. It will go away someday although the hotel industry has been hit badly. Our KK hotel is on-going and we have no plans to put the construction work on hold due to the pandemic as KK is a world famous tourist destination and hotel rooms in KK were lacking before Covid-19,” Weber noted.

He added that the Kota Kinabalu hotel will be a 5-star hotel with 220 rooms. It is located in the heart of Kota Kinabalu town.

Meanwhile, its 300-room Hyatt Hotel in Dutamas will upon completion in 2025 be a 5-star hotel and the only hotel with a direct link bridge to the Malaysia International Trade and Exhibition Centre (MITEC), the largest exhibition centre in the country.

“Unlike the KK hotel, our new hotel next to MITEC is a convention/corporate hotel. It will be the only hotel with direct access to the exhibition hall. We believe Malaysia's exhibition industry is full of potential given the country has so much to offer with its strategic location in South East Asia,” Weber offered.

Menara Hap Seng 3 completed

At the media briefing yesterday, the group announced the completion and opening of its latest office development – Menara Hap Seng 3 in Kuala Lumpur.

Located in the intersection of Jalan Sultan Ismail and Jalan P Ramlee, Menara Hap Seng 3 is part of Plaza Hap Seng. The other two components are also office towers, namely Menara Hap Seng and Menara Hap Seng 2.

The 26-storey Menara Hap Seng 3 comprises five podium levels of retail and F&B, 20 floors of office spaces as well as a rooftop F&B space, sitting above six levels of basement parking. It offers 200,000 sq ft of net lettable office space and 43,000 sq ft of net lettable retail space. The development cost of Menara Hap Seng 3 is RM352 million.

Construction was completed early this year but due to the Movement Control Order (MCO), the anchor tenant – Tokio Marine Insurans (Malaysia) Bhd only moved in recently. Tokio Marine Insurans took up 40% of the total office space.

“We were talking to five to six very high potential tenants early this year before the MCO but the discussions have gone quiet since the MCO. Some have decided to put their relocation plans on hold. However, we are very confident that by year end, if the economic environment continues to improve, we will be able to fill up Menara Hap Seng 3 soon," said Weber.

He added that Menara Hap Seng and Menara Hap Seng 2 have a high occupancy rate of 98% with mostly long-term tenants. The asking office rental per month for Menara Hap Seng 3 is RM9, depending on the size.

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