Thursday, January 11, 2018

Big tenants for Exchange 106

Big tenants for Exchange 106

  • Thursday, 11 Jan 2018
About half of 106-storey building’s floor space taken up
KUALA LUMPUR: The Exchange 106 has signed up some large institutions to be its tenants as it populates the floors of the country’s tallest tower, which will be completed by the end of this year.
All of the prospective tenants who signed up are “big space users” and are predominantly from the local financial and lending sector, a source said.
They will take up between two and eight floors, with each level having a floor space of about 34,000 square feet, the largest column-less floor space in the country.
Those who need 5,000 sq ft or less are expected to be “fitted in” later on, the source said.
The source said up to 47% of the 2.6 million sq ft of the floor area of Exchange 106 has been formally signed, and 9% under negotiation.
The 106-storey building is being constructed by one of Indonesia’s largest commercial property developers Mulia Group and has an asking rent of RM17 per square foot (psf) despite current concerns of the oversupply of office space in the Klang Valley.
Such a rental would put Exchange 106 ahead of the RM13 psf sought by Menara 3 Petronas, which is part of the Petronas Twin Towers development.
Iconic skyscraper: Exchange 106 at the Tun Razak Exchange reaching dizzy heights as work continues round the clock to complete the building this year. The 15th tallest building in the world upon completion, it will top Kuala Lumpur’s league of super prime office buildings. — Bernama
Iconic skyscraper: Exchange 106 at the Tun Razak Exchange reaching dizzy heights as work continues round the clock to complete the building this year. The 15th tallest building in the world upon completion, it will top Kuala Lumpur’s league of super prime office buildings. — Bernama
Exchange 106, the 15th tallest building in the world upon completion, will top Kuala Lumpur’s league of super prime office buildings, namely, the Twin Towers, Maxis Tower and Permodalan Nasional Bhd’s Menara 118.
Although the asking rent is RM17 psf, according to Savills Malaysia executive chairman Christopher Boyd, the various incentives and favourable tax practices given to Exchange 106 are equivalent to about RM2 psf.
This means the effective rental is lower than RM17 psf.
“Mulia is benchmarking itself against some of the most famed developments around the world, the glass and steel structures in London’s Canary Wharf, The Shard, also of London, New York’s Freedom Tower which is also known as 1 World Trade Centre and Shanghai’s International Finance Centre,” a source said.
At RM17 psf, those who have taken up leases at Exchange 106 will be able to “appreciate the quality and value of that building” and the integrated development that it will be a part of, the source said.
Leasing is open from level 62 currently. The building opened for lease about a year ago.
Australian developer and infrastructure group Landlease is developing 17 acres on the Tun Razak Exchange (TRX).
TRX will also house Kuala Lumpur’s largest underground MRT station.
Mulia will be managing the building itself, from the glass cleaners on gondolas to the technicians “except the lift technicians”, a source said.
Separately, on the Ministry of Finance Inc (MoF) having a 51% stake in Mulia Property Development Sdn Bhd, the source said “that is what the documents show”.
It was reported that MoF had bought the stake from Mulia International Ltd, a unit of Mulia Group.
The Mulia Group bought the 3.42 acres in 2015 for RM665mil from the-then 1MDB Real Estate Sdn Bhd, now known as TRX City Sdn Bhd.
When completed this year, The Exchange 106, at 492 metres, will be about 40 metres higher than the Petronas Twin Towers.
The speed the building has been developed at has also been the talk of the town, averaging a floor every three days, compared with the normal eight and nine days per floor. Work is done around the clock, a difficult act to follow among the other structures in TRX.
Nonetheless, Boyd said The Exchange 106 will be ready for occupation. Exchange 106 is Mulia’s only investment in Malaysia to date.

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Monday, December 25, 2017

Wisma Selangor Dredging sold for RM480mil; special dividend in store

Wisma Selangor Dredging sold for RM480mil; special dividend in store

KUALA LUMPUR: Selangor Dredging Bhd (SDB) is selling its headquarters Wisma Selangor Dredging, located in the city centre, for RM480mil in cash.

In a filing with Bursa Malaysia, the property developer said it expected to make a gain of RM146.8mil from the proposed sale. This translates into a 32-sen improvement in earnings per share.

SDB said it entered into a conditional agreement on Tuesday to sell the piece of freehold land on Jalan Ampang, along with the four blocks of commercial building on it, to Golden Eagle Realty Sdn Bhd. Golden Eagle is ultimately 99% owned by businessman Tan Sri Koo Yuen Kim.

The 30-year-old Wisma Selangor Dredging has a market value of RM372.1mil (as appraised by an independent valuer as at May 15) and audited net book value of RM318mil (as at March 31 last year).
Two years ago SDB had said it was open to selling Hotel Maya, its property located a stone's throw away from Wisma Selangor Dredging, but did not give any price indication. Hotel Maya's net book value as at March 31, 2016, was RM150mil.

“The proposed disposal (of Wisma Selangor Dredging) provides an opportunity for the SDB group to unlock its investment in the subject property and generate immediate cash flow for the group,” the company said.

Of the RM480mil gross proceeds, the largest portion (RM248.75mil) will be used to fully settle the redemption sum owing to Public Bank Bhd to release the existing lien-holder’s caveat and the bank’s interest over the sale property.

A sum of RM103.07mil will be set aside for the SDB group’s working capital and RM80.96mil will be distributed to shareholders via a special cash dividend.

According to this writer's back-of-the-envelope calculation, the special dividend will be about 19 sen per share based on SDB shares in issue as at March 31, 2016. SDB paid annual dividends ranging from 1.5 sen to 3 sen per share over the last few years.

SDB will also use part of the proceeds - RM19.2mil - to repay bank borrowings, which is expected to result in RM0.96mil in annual interest savings. (SDB has total group borrowings of about RM563.76mil.)

After the proposed disposal, SDB net gearing is expected to fall to 0.05 times compared with 0.33 times as at March 31, 2016.

The counter closed at 96 sen on Tuesday, up 3 sen with 101,200 shares changing hands. SDB share price has gained 17% year-to-date.
Source :

Monday, December 18, 2017

Prudential to move to Tun Razak Exchange by 2019

Prudential to move to Tun Razak Exchange by 2019

KUALA LUMPUR: Prudential will be relocating its headquarters to a 27-storey building in the upcoming Tun Razak Exchange here, Malaysia’s first dedicated international financial district.
Slated for opening by 2019, the building will house all of Prudential’s life insurance and asset management businesses in Malaysia under one roof.

Master developer TRX City Sdn Bhd CEO Datuk Azmar Talib said it now moves even closer towards realising TRX as a truly international financial district, with the confirmed participation of some of the world’s top banks and financial institutions.

The commercial tower, currently under construction, is developed by TRX. The Prudential plot is adjacent to TRX’s main pedestrian gateway from the Bukit Bintang area.

Currently, Prudential’s offices are spread out across Jalan Sultan Ismail and Bukit Bintang. The move will consolidate all its operations in the new building, which will include a walk-in customer service centre.

Prudential has been in Asia for more than 90 years, with Malaysia as its longest established operation in the region.

To date, TRX has signed global property and infrastructure group Lendlease to jointly develop the Lifestyle Quarter; HSBC Malaysia and Affin Bank Bhd for office towers; Indonesia’s leading property developer Mulia International to build Signature Tower; Lembaga Tabung Haji and WCT Bhd for residential plots, and global leader in water management Veolia Water Technologies as the water treatment and recycling concessionaire.

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Monday, December 11, 2017

Amanahraya REIT buys Intermark’s Vista Tower for RM455m

Amanahraya REIT buys Intermark’s Vista Tower for RM455m

KUALA LUMPUR (Sep 7): Amanahraya Real Estate Investment Trust (ARREIT) is acquiring Vista Tower, a 63-storey office building, from The Intermark Sdn Bhd for RM455 million in cash.

The office tower with two concourse levels and three basement levels has a land area of  228,948 square feet, according to a filing with Bursa Malaysia by the REIT’s management company, AmanahRaya-Kenedix REIT Manager Sdn Bhd.

The building’s net lettable area is 551,875 square feet, and the occupancy rate was 74.4% as of July 31 and could fall to 66.3% due to the non-renewal of one of the tenancy agreements upon expiry on Nov 30, said AmanahRaya-Kenedix.

It added that the purchase consideration was below the market value, estimated at about RM523 million, based on the investment method.

According to the filing, the proposed acquisition will elevate the ranking of Amanahraya REIT to among the top 10 REITs in Malaysia by total asset value (TAV), as its TAV will grow from RM1.03 billion to RM1.56 billion with the completion of the acquisition.

This, it added, will enhance the overall presence and reputation of Amanahraya REIT among the Malaysian investment community.

AmanahRaya-Kenedix said the acquisition will also enable diversification and enlargement of the portfolio of assets under its management, which is expected to benefit Amanahraya REIT in the long-term as a result of economies of scale.

The purchase consideration, it said, will be funded via a medium-term note programme with RM450 million notes issues and internally generated funds of RM5 million.

AmanahRaya-Kenedix said there is no additional financial commitments from Amanahraya REIT, except for the capital expenditure to be incurred in the course of its normal operations since Vista Tower is already established and fully operational.

The trading of Amanahraya REIT shares has been suspended since yesterday afternoon and will resume trading tomorrow.


Monday, December 4, 2017

Lendlease gets okay for construction of TRX

Lendlease gets okay for construction of TRX

PROPERTY and infrastructure group Lendlease Corp has received all the approvals to progress the Lifestyle Quarter of the Tun Razak Exchange (TRX) to the next stage and has moved into the construction phase of the development.

Australia-listed Lendlease is the joint-venture partner of TRX City Sdn Bhd in developing the Lifestyle Quarter at TRX, a 6.88ha mixed-use development.

Lendlease owns 60% of the partnership, while the remaining 40% stake is held by TRX City.
Lendlease is also the development and construction manager for the project, which has an estimated development end value of around RM8 billion.

Among the approvals received by the company include the Earthworks Plan Approval from the Kuala Lumpur City Hall that would allow it to proceed with construction at the site.

“With the approvals, works at the TRX Lifestyle Quarter comprising a new city centre retail mall, six residential towers, a luxury hotel and park are now in full swing.

“The excavation has been completed. Piling for the retail component is progressing well, with almost 500 structural piles completed,” the group announced in a statement yesterday.

With over 120,774 sq m (1.3 million sq ft) of net lettable area, the project has to date leased 26% of its retail space to include Japanese departmental store Seibu, an upscale supermarket brand by Hong Kong-based Dairy Farm Group, and a Golden Screen Cinemas theatre.

TRX is an upcoming RM40 billion international finance and business district located between Jalan Tun Razak and Jalan Bukit Bintang.

Its master developer is TRX City, a wholly owned unit of the Ministry of Finance Inc.

Source :

Monday, November 27, 2017

China's CCCC to make KL its Asean hub, build tower at TRX

China's CCCC to make KL its Asean hub, build tower at TRX

CCCC’s land at TRX is near Land Lease Lifestyle Quarter’s mall (above) there.
BEIJING: China Communications Construction Co Ltd (CCCC) intends to make Kuala Lumpur its hub for the Asean region as the port and construction group expands its footprint here.

“We will set up our regional centre in Kuala Lumpur,” CCCC vice-president Peng Dapeng told reporters at the group’s headquarters in Beijing.

He said the group was building the “CCCC tower”, a commercial building in the Tun Razak Exchange (TRX).

“We have acquired the land. We are in the midst of reviewing the project so details are scant now,” he said, without disclosing the gross development value (GDV) and investment value.

“We will have our regional head office there for Asean and some portion of the tower will be rented out,” Peng said, adding that the group currently had eight regional hubs globally.

“Malaysia is very important to us. As you can see, the contract value we have in Malaysia is the highest among other Asean countries. Currently, we have more than US$16bil (RM67.27bil) worth of on-going contracts in hand. We believe this number will be bigger in the future,” he added.

In August, CCCC’s Malaysian unit had agreed to subscribe to 15% in WCT Precious Development Sdn Bhd (WCTPD), which had earlier acquired a plot measuring 71,986 sq ft in the TRX district from 1MDB Real Estate Sdn Bhd (1MDBRE) for RM223mil.

CORE (Singapore) TRX Investment Pte Ltd, a company related to CCCC’s sister company CCCG Real Estate Group Ltd (both companies are owned by China Communications Construction Group Ltd), owns a controlling 65% stake in WCTPD. The remaining 20% is held by WCT Land Sdn Bhd.

The land was then earmarked for the construction of a proposed tower block of high-end serviced apartments with a GDV of about RM1.1bil. WCT Holdings Bhd’s unit WCT Bhd was given the letter of award by 1MDBRE  contract to undertake the construction.

Source :

Monday, November 20, 2017

KL prime office sector to see 2.5% rent growth in next three years — Knight Frank


KL prime office sector to see 2.5% rent growth in next three years — Knight Frank

Holt: Rental growth prospects across the major cities in Asia-Pacific look positive over the next three years. (Photo by Low Yen Yeing/

KUALA LUMPUR (Oct 11): Knight Frank has forecast a 2.5% growth in prime office rents in Kuala Lumpur over the next three years, a growth rate which is ahead of the forecasts for two main cities in China — Shanghai and Beijing.

According to the global property consultancy firm’s Global Cities: The 2018 Report, KL ranked 12th highest in the Asia-Pacific rent growth three-year forecasts (end-2017 to end-2020).

Knight Frank Asia-Pacific head of research Nicholas Holt said rental growth prospects across major cities in Asia-Pacific look positive over the next three years, reflecting solid regional growth prospects translating into strong demand from a number of sectors.

“Occupiers in technology, media and telecommunications are especially likely to drive demand in many of the gateway cities, while we also expect to see more Chinese tenants active in the major markets,” he said during a media briefing on the key findings of the report.

Manila topped the list with a rent forecast growth of 19.1% over the next three years, followed by Brisbane and Singapore which have a forecast growth of 16.5% and 15.8%, respectively.

Meanwhile, Knight Frank Malaysia managing director Sarkunan Subramaniam said KL’s office rental has offered the most value among the 23 global cities in the report with an average per annum rental of US$23 psf or US$250 psm.

In terms of rental yield, Holt said some skyscrapers in KL have offered attractive yields of 6.5%, which is higher than other cities including Singapore (3%) and San Francisco (4.5%).
The report features the Skyscrapper index, which examines the rental performance of commercial buildings of over 30 storeys across 23 global cities in 2Q17.

In the Skyscrapper index, Hong Kong topped the list with per annum rental of US$304 psf or US$3,273 psm.

New York (Manhattan) and Tokyo came second and third with the per annum rental of US$162 psf (US$1,742 psm) and US$140 psf (US$1,502 psm), respectively.

Commenting on old office buildings that are losing their attractiveness to new Grade A buildings, Sarkunan noted that KL is now undergoing gentrification and property owners would need to rethink and repurpose their buildings to suit current needs in order to attract new tenants.

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