Robust growth and major transactions noted in 3Q 2010

KUALA LUMPUR: Local economic indicators continue to show robust growth as several major investment transactions were recorded in the third quarter of 2010, according to Savills’ latest Asia Pacific Investment Quarterly for Malaysia.

Included among the transactions is the record acquisition of RM7,209 psf for a 29,127 sq ft tract in Bukit Bintang by the owners of Pavilion KL shopping centre. The same owners also re-opened the former KL Plaza, now known as Fahrenheit 88, in Bukit Bintang after a RM100 million refurbishment.

Qatar Investment Authority owns 49% of Pavilion KL and in 2Q 2010, signed a Memorandum of Understanding with 1Malaysia Development Bhd to facilitate investment cooperation.

On the residential front, a 14,300 sq ft penthouse apartment at Binjai On The Park was reportedly sold for a record RM2,657 psf to an investor.

Also, the architect of the Petronas Twin Towers is said to be designing a mixed-use development for a joint-venture company between KLCC (Holdings) Sdn Bhd and Qatar Investment Authority, said Savills.

Meanwhile, on Sept 21, a public open day was held to inform the public about the Economic Transformation Programme where a scale model of Greater Kuala Lumpur (KL) was unveiled.

According to Savills, the plan includes putting Kuala Lumpur on the list of the top 20 most livable cities by 2010 and encouraging multinational companies to locate their headquarters in Greater KL.

A high-speed rail system connecting Greater KL and Singapore are in the works, and Greater KL is expected to require a cumulative funding of RM172 billion from 2010 to 2020.

On July 8, Bank Negara raised the overnight policy rate (OPR) to 2.75%, making it the third time that rates have been increased this year.