Low Yat expects RM55 millon in rentals from Rivercity development

KUALA LUMPUR: Low Yat Group expects some RM55 million in rentals over five years from the retail portion of its Rivercity mixed development project along Jalan Ipoh in Kuala Lumpur.

The retail portion of the Rivercity project, located on a 3.7 ha site, comprises food and beverage outlets, a supermarket, home furnishing concept outlets, beauty and wellness centres, edutainment, as well as telecommunications and service centre. The Victoria International College will also be there.

Low Yat Group’s deputy general manager for property development, Leow Sian Hiong said it is currently upgrading the existing eight blocks of buildings in Rivercity, which it expects to complete by year-end.

Speaking to the media on Oct 12, she said the exercise would double the rental yield for retail to RM8 psf from RM4 psf prior to the redevelopment.

“The project is 100% owned by us and we are very selective of the tenants,” Leow said.

She added that the project would contribute to the group’s earnings from 2010 onwards as it expects 90% occupancy with a good tenant mix by 1Q2010.

The group is investing RM7 million to transform what was previously an area made up of old shopoffices and warehouses, into a vibrant lifestyle hub.