PETALING JAYA: The EMKAY Group expects to some 8% rental yield from its new corporate office tower Menara Mustapha Kamal in Damansara Perdana in Petaling Jaya beginning FY2011.

Purchased for some RM85 million, Menara Mustapha Kamal is a 21-storey grade A office building which houses the Group's corporate office and of its subsidiaries.

It has a net lettable area of 210,000 sq ft of which the Group occupies 60,000 sq ft. The remaining 150,000 sq ft is available for rental.

Speaking to reporters on Oct 15 after the handover of the office tower from its developer Tujuan Gemilang Sdn Bhd, Group chairman Tan Sri Mustapha Kamal Abu Bakar said EMKAY is targeting full occupancy of the building by mid next year. “Other areas in the Klang Valley may offer RM8 psf while Menara Mustapha Kamal offers RM4 psf,” he added.

It is also in the midst of leasing discussions with a few multinational companies while some tenants are moving in next year.“They are now waiting for their tenancy in their existing office space to end before moving here. Early next year, we will see a lot people coming to this building” Mustapha Kamal said.

The group also plans to list the property into a Real Estate Investment Trust (REIT) within the next few years. Menara Mustapha Kamal is one of four “Grade A” office towers in the PJ Trade Centre project developed on a 5.4-acre site.

The entire PJ Trade Centre project will be completed by December 2009 with a gross development value of RM376 million. Tower B (Menara Bata) was completed in Feb 2009 followed by Tower A (Menara Mustapha Kamal) in July. Tower C and D which have also been sold are expected to be completed  in December.

Former Prime Minister Tun Mahathir Mohamad will grace the opening ceremony of Menara Mustapha Kamal on Oct 16.