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Wednesday, July 9, 2008

I-Bhd plans to sell i-City en bloc

SYDNEY: I-Bhd is close to clinching an en bloc sale of the first phase of its 72-acre freehold i-City integrated commercial project in Shah Alam.

Deputy chief executive officer Lim Boon Siong told reporters the company was close to signing a deal comprising 44 units of three- and five-storey shop-offices.

Lim Boon Siong

“We're in an advanced stage of negotiation and will be making an announcement in the next few weeks,” Lim said.

“It would be on a sale-and-leaseback option as the company would prefer to have control of the tenant mix”, he added.

The RM2bil project, scheduled for completion in 2012, will comprise a shopping mall, two corporate towers, shop- offices, serviced apartments, data centres, a five-star hotel and an innovation centre.

It will be equipped with seamless wireless access, integrated information and communications technology and building networks, and multimedia and collaborative tools.

He estimated that the en bloc sale would bring RM15mil to RM20mil in net profit to the company. “We believe we can command at least 20% to 30% premium or RM400 to RM500 per sq ft for the shop-offices,” Lim added.

The company signed an agreement last week with Servcorp Ltd, the world's second largest managed office operator, in which Servcorp and 65%-owned subsidiary i-Office2 Sdn Bhd would provide state-of-the -art concierge services.

I-Bhd has also partnered with US-based Cisco Systems Inc for the Cisco Connected Real Estate that will be used as the vehicle to provide the services.

Lim said the company was also negotiating to sell the project's mall component on an en bloc basis.

“We’ll announce towards the end of the third quarter our joint venture with a foreign shopping operator, that is one of the largest in Asia, which will also be managing the mall.”

Lim said recurring income from property management and fees from i-Office2 would form 20% to 25% of revenue going forward.

By The Star (by Fintan Ng)

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