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KUALA LUMPUR: Private equity real estate investment advisory company MGPA plans to invest more in Asia, including Malaysia, in the near future.
“We think Malaysia offers fabulous investment opportunities. We look around the region and Malaysia is a destination we keep coming back to,” said MGPA Asia CEO John Saunders.
He added that its MPGA Asia Fund III currently has a capital of US$500 million (RM1.5 billion) to invest in Asia and is now actively looking at investment opportunities in the region.
Saunders was speaking during a press conference after the signing ceremony for the RM1.2 billion syndicated term loan facility for The Intermark Sdn Bhd with Maybank Investment Bank Bhd yesterday.
MGPA entered the Malaysian market in 2007 with the RM760 million acquisition of a mixed use complex comprising Empire Tower office building, Crown Princess Hotel, Ampang Plaza and City Square shopping centre along Jalan Tun Razak, Kuala Lumpur.
The complex has since been redeveloped and rebranded as The Intermark and comprises the 62-storey grade A office building Vista Tower, the 39-storey Leadership Energy and Environmental Design Platinum pre-certified Integra Tower, the 540-room Doubletree by Hilton hotel and a retail podium. The redevelopment cost RM2.25 billion and is an asset under its MGPA Asia Fund II.
Saunders said progressiveness in terms of politics and economy in Malaysia, as well as a welcoming environment for foreign direct investments, has created a strong market for investors.
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| The Intermark Sdn Bhd director Brisco Fan (second from left) exchanging documents with Maybank Investment Bank Bhd CEO Tengku Datuk Zafrul Tengku Aziz (right) while Maybank Investment Bank Bhd MD and head of client coverage John Chong (left) and Saunders look on. |
“At the end of the day, what makes The Intermark work is the fact that we have tenants to occupy the buildings. This means the economy and business are growing, particularly in the services and oil and gas sectors,” he said.
Vista Tower, which was completed early this year, has an occupancy rate of 60%. Among its tenants are BNP Paribas, Sumitomo Mitsui Banking Corp, International Islamic Liquidity Management Corp and United Overseas Bank Ltd.
Saunders is confident Vista Tower will be able to hit full occupancy by year-end while The Integra is scheduled for completion next June.
“It took us about six months to achieve 60%. The leasing market here is very strong and there aren’t many integrated developments such as ours where you have a hotel, offices and shopping in one place. So, 100% occupancy is achievable by end of the year,” he said.
He added that MGPA’s focus, particularly in big cities, will be on acquisition of existing properties.
“We have a strategy of buy-fix-sell which gives us an opportunity to add value to the property,”he said.
Commenting on the RM1.2 billion syndicated loan facility, Saunders said the facility has been structured to accord flexibility and cost efficiency in order to meet the financing objectives of both The Intermark and MGPA.
This article appeared on the Property page, The Edge Financial Daily, June 24, 2011.
