The Emkay Group of companies, controlled by developer Tan Sri Mustapha Kamal Abu Bakar, said its plans to set up a commercial property trust could take two years to materialise.
Chief operating officer Peter Teh Heng Poh said the real estate investment trust (REIT) is still in the conception stage, but it is targeting to have at least 500,000 sq ft of net lettable area in the trust.
"Most of the upcoming buildings in MKN Embassy Techzone, an IT building project in Cyberjaya, are also slated for the trust" Peter Teh Heng Poh Chief Operating Officer Emkay Group
“Based on the buildings that we have, the size is already there. We are working on other details,” he told Business Times in an interview in Damansara Perdana yest e r d ay.
The REIT will likely be listed on the local bourse and will own mainly the Emkay Group’s properties in Cyberjaya as well as in Damansara initially.
Among assets to be sold into the trust is the four-storey Bangunan Mustapha Kamal in Cyberjaya, which has 121,500 sq ft of lettable area. The building has been completed and the group is in negotiations with potential tenants, Teh said.
In Damansara Perdana, the 21- storey Menara Mustapha Kamal, which is due for completion in September 2009, will also be included in the property trust.
This building will have 201,508 sq ft of lettable area and the group plans to retain four floors for its own use.
Teh said most of the upcoming buildings in MKN Embassy Techzone, a freehold IT building project on 4.1ha site in Cyberjaya, are also slated for the trust.
The so-called campus development will have clusters of specially- built office blocks for IT firms sharing some common facilities, he said. The project is modelled after a similar concept in Bangalore done by its partner, the Embassy Group of India.
“There will be four blocks under the first phase and we plan to buy more land from Setia Haruman Sdn Bhd to build another eight blocks in Phase 2,” Teh said.
Setia Haruman is the master developer of Cyberjaya and is an associate company of Emkay Group, in which Mustapha holds majority shares.
Teh said the first two blocks in Phase 1 of the Techzone that are due to be done in the next few months, will not be put into the REIT because it is already in talks with some local funds for en-bloc sale.
“There are many fund managers looking to buy the buildings because they want recurring income. If they can get a seven per cent return, they are happy,” he said.
The upcoming blocks in the first phase of Techzone should measure some 250,000 sq ft in gross built-up each, Teh added.
Other potential candidates for the trust include two 10-storey office towers within the NeoCyber mixed development project in Cyberjaya. Emkay Group plans to start construction on these towards the year-end, which will have another 260,700 sq ft lettable area.
CYBERJAYA: The Emkay group of companies will spend RM142.9mil to buy land for its second phase of commercial property development in Cyberjaya.
Group chairman Tan Sri Mustapha Kamal Abu Bakar said group had identified various areas to put up buildings for the information technology (IT) industry.
“To date, in the first phase of our development here, we have bought RM72.3mil worth of land that has resulted in gross development value of RM725mil,” he told reporters after delivering mock keys to its NeoCyber buyers and a press briefing on its MKN Embassy Techzone building yesterday.
The event was witnessed by Second Finance Minister Tan Sri Nor Mohamed Yakcop.
Its first phase development has four main commercial property projects - the NeoCyber, MKN Embassy Techzone, the Mustapha Kamal building and the Lucky Cottage.
Emkay's buildings are on a build-then-lease-or-sell basis in response to foreign and local investors' needs.
Mustapha Kamal said the initial phase of NeoCyber, comprising shop lots, had been 100% taken up and the second phase was 90% sold.
“We will start the NeoCyber third and fourth phases early next year and hope to wrap up the project by 2010.
“For the MKN Embassy Techzone building, we are in the midst of installing some IT fittings as required by a potential buyer,” he said.
He added that the deal with the buyer would be announced soon.
In its business focus in developing IT buildings, Mustapha Kamal said the company had faith in the future of Cyberjaya.
“We develop buildings as per customer specification to be rented out; later we plan to go into real estate investment trusts,” he said.
Meanwhile, Nor Mohamed said the Government would spend RM40bil in subsidies this year.
“Of the total, fuel subsidy accounts for RM18bil as compared with RM7bil to RM8bil last year,” he said.
UEM plans RM1b Cybercity venture
By Sharen Kaur Published: 2008/06/23
UEM Land and Setia Haruman are finalising a deal where UEM World's unit will pay less than RM150 million for 40ha to develop a housing project, says a source
UEM Land Bhd will acquire about 40ha from Setia Haruman Sdn Bhd, the master developer of Cyberjaya, and launch its first housing project in the digital city worth some RM1 billion by year-end.
It is learnt that UEM Land- a unit of UEM World Bhd, Malaysia's third biggest construction concern - will buy the land for less than RM150 million to construct over 3,000 units of superlink, semi-detached houses and condominiums.
A company source told Business Times that UEM Land plans to sell the houses from RM500,000 each, and condominiums starting from RM200,000 per unit.
"Both firms are finalising the land deal. It is Setia Haruman's objective to equip Cyberjaya with 6,200 homes by 2010," the source said.
Cyberjaya, Malaysia's IT hub, has 2,700 houses comprising landed properties and apartments.
The homes were built by Setia Haruman, Country Heights Holdings Bhd, MK Land Holdings Bhd and Emkay Group of Companies.
The source said by 2010, UEM Land will add 1,000 homes in Cyberjaya and another 1,000 units will come from Cyberview Sdn Bhd, one of four key stakeholders of Cyberjaya besides Setia Haruman, Multimedia Development Corp and Sepang Municipal Council.
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