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Tuesday, February 26, 2008

Mayland plans Putrajaya office tower

PUTRAJAYA: Malaysia Land Properties Sdn Bhd (Mayland) is set to begin construction of an office tower in Putrajaya’s Precinct 3. The developer acquired the 1.56-acre tract where the commercial project will be built from landowner Putrajaya Holdings Sdn Bhd for RM23.7 million.

Mayland’s vice chairman Tan Sri David Chiu said it plans to lease out the building for long-term investment. The office tower, with a gross floor area of 420,926 sq ft, will be developed by Mayland’s wholly owned subsidiary Bliss Avenue Property Development Sdn Bhd.

Chiu (left) and Azlan had yesterday's signing ceremony

“The construction will start as soon as possible… in three to four months’ time. With a height of between eight and 14-storeys, the office block will also have a commercial element. The rental rates here are between RM4 and RM5 psf,” Chiu told reporters at a press conference after the signing ceremony between Bliss Avenue and Putrajaya Holdings yesterday.

While expressing his confidence in the demand for such commercial properties in Putrajaya, Chiu said that it had received good leasing enquiries from both the public and private sectors for Mayland’s office tower.

On the cost of the project, Chiu said that construction costs alone amounted to some RM100 million, exluding the cost of the land. The purchase is funded by the developer’s internal funds.

On the group’s landbank, Chiu said the developer has about 500 acres in Selangor, Johor Baru and Kuala Lumpur that would eventually be developed into 20,000 residential and commercial units. Chiu added that it has plans to launch properties worth some RM2.5 billion in the next 18 months.

Meanwhile, this acquisition is the third sale of commercial land in the 5,000 ha federal administrative capital. According to master developer Putrajaya Holdings, some 300 acres have been zoned as commercial land.

Putrajaya Holdings chief executive officer Azlan Abdul Karim said it has plans to sell some 10% of the commercial plots. Current market values range between RM350 psf and RM400 psf. To date, it has closed deals amounting to between RM80 million and RM90 million for about six acres of land.

“The first two commercial plots were sold to a Hong Kong international property investment group, TRW Group. They will also be offering office towers with gross built-ups of 450,000 sq ft and 600,000 sq ft respectively,” said Azlan.

According to Azlan, it is also in talks with several local and foreign parties, including from Hong Kong and the US, to sell more commercial land.

“We want to bring in the services from third-party developers to create more vibrancy and excitement in Putrajaya. Offering projects such as office towers will further boost commercial space here and attract the private sectors to set up more offices,” he said, adding that it is also open to joint ventures with the third-party developers.

To date, Putrajaya Holdings has completed 22,000 units of government quarters as well as 5,000 residential units. For the government office buildings, it has completed some gross built-up space of about 30 million sq ft as well as six commercial buildings with a gross built-up of about four million sq ft.

It is currently in talks with several local and foreign parties to sell one of these commercial buildings, the 26 Boulevard office building in Precinct 3, which has occupancy levels of about 90%.

The 12-storey building has a gross floor space of about 516,668 sq ft and is valued at more than RM200 million.

By theSun (by Loo Pik Kwan)

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