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Wednesday, July 9, 2008

KLCC Property Holdings positive on earnings

KUALA LUMPUR: Integrated real estate developer KLCC Property Holdings Bhd is optimistic of its earnings prospect despite challenges in the current economy.

According to group chief executive officer Hashim Wahir, its outlook remains positive, as the demand for office space in prime areas of the city centre remains strong and stable.

Kashim Wahir

A major part (46%) of the company's revenue is derived from property investment and office rental, followed by hotel property (21%), retail centre (27%) and management services (6%), he said after the company AGM yesterday.

“For the hotel operations we need to be innovative, focus more on marketing and sustain occupancy. For example, Suria KLCC is registering 99% occupancy. "

Hashim disclosed that ExxonMobil was renewing its lease agreement with KLCC Property's wholly owned subsidiary Arena Johan for Menara ExxonMobil. The management expects a 3% increase in rental revenue every three years.

“The traffic volume at the Suria KLCC currently stands at 40 million people per year. KLCC Property has yet to see any impact from the decline in domestic demand and consumer spending,” Hashim said.

Asked on KLCC Property's acquisition plans, Hashim said its hands were full with Lot C development in the KLCC precinct, which was under the substructure phase, and Lot D1, which is in the planning stage, but it did not discount the possibility in the future.

Plans for Lot D1are expected to be finalised in one to two years.

By The Star

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