Sunway plans open car park land for RM1.5b offices

SUBANG JAYA: Sunway Bhd has earmarked a 4.9-acre (1.98ha) parcel of land next to its upcoming office tower, currently used as an open air car park, for three office towers with an estimated gross development cost (GDC) of RM1.5 billion, said property investment division managing director Datuk Ngeow Voon Yean.

"We have not decided when to build the offices yet. If demand for The Pinnacle [new office tower] is encouraging, we may build the offices earlier. There is room for around two million sq ft of grade A office space," he told The Edge Financial Daily.

This is part of Sunway's plan to transform a stretch along Jalan Lagoon Timur, which includes Menara Sunway where the group is headquartered, into what Ngeow called a "commercial sweet spot" within the 27-year-old township.

The Pinnacle, currently under construction next to Menara Sunway, is a grade A, green and intelligent 27-storey office with a net lettable area of 580,000 sq ft. The floor plates are 25,000 sq ft and tenants are allowed to take up a minimum of 2,250 sq ft. Rents are pegged from RM5 to RM5.50 psf.

Some common facilities include a sky garden and lactation rooms on the 13th floor and a gymnasium for tenants only. Each floor has four executive rest rooms and shower facilities.

The Pinnacle has a GDC of RM350 million with Green Building Index and Singapore's Building & Construction Authority Green Mark Gold certifications. It has a fibre optic backbone and is expected to be completed by end-2014.

Sunway is embarking on a marketing exercise to attract tenants to relocate to the township and hopes to entice them with Bandar Sunway's amenities, relatively green and safe environment.

They are Sunway Pyramid, Sunway Resort and Hotel, Sunway Medical Centre and the upcoming bus rapid transit (BRT) elevated two-lane road that has seven proposed stops, beginning at the USJ-Sunway station of the Kelana Jaya light rail transit extension and ending at the Sunway-Subang Jaya Komuter station.

Upon completion of The Pinnacle, the entire township will have about 10,000 parking bays in the interconnected basement car parks at the new office tower, Menara Sunway, Sunway Resort and Spa, Sunway Pyramid and outdoor.

While The Pinnacle sees only "strong commitments" from potential tenants since it began leasing recently, Ngeow is confident that the office tower will be well-received. "We know there is concern over a glut of office space, but we see more people relocating from the city and central business districts and it is rare to find offices in a matured, convenient location like ours," he said.

Sunway may inject the office tower into Sunway Real Estate Investment Trust, which comprises 12 properties.

This article first appeared in The Edge Financial Daily, on June 14, 2013.

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