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Monday, August 17, 2009

Glomac selling corporate tower to govt agency

Property developer Glomac Bhd is selling one of its two corporate towers at its upmarket RM800 million Glomac Damansara development in Petaling Jaya to a government agency for RM200 million.

Its executive vice-chairman Datuk Richard Fong Loong Tuck said the deal is due to be finalised by month-end.

Glomac Damansara consists of a 15- and 30-storey corporate tower, two 25-storey serviced apartment blocks, five- and eight-storey shop offices, nine- and 11-storey office suites and a hybrid retail mall.

Fong told Business Times the government agency will buy the 30-storey corporate tower but it wants the height reduced by five floors.
"We are in negotiations with the agency and will plan the design of the building according to their request. Since we are reducing the height of the tower, we will raise the floors for the other buildings," Fong said.

Fong said the office suites, which will be launched in mid-2010, may be increased by two floors, increasing its value from RM120 million currently.

Fong said other investors have approached Glomac for the 15-storey tower, which is valued at RM60 million and earmarked as its new headquarters.

He added that negotiations are ongoing with some of the parties.

"We will launch and hope to sell the corporate tower, shop offices and office suites before introducing the serviced apartments and mall next year. There is demand for office space in this area," Fong said.

Glomac has sold 70 per cent of the five- and eight-storey shop offices, launched in March this year.

Fong said sales of the shop offices were slow initially but picked up from late May.

As for the apartment blocks, Glomac is mulling to launch the units in early 2010, targeting locals within Petaling Jaya, Taman Tun Dr Ismail, Bandar Utama, Damansara and Bangsar, Fong said.

Fong said the price of the apartments have been pegged at RM600 per sq ft and above.

"When we first planned the apartments, we were looking to have 208 units, each with a built-up of 1,500 sq ft. However, we have reduced the sizes to 800 sq ft to 1,500 sq ft so we are now offering 300 units for sale to the man on the street," Fong said.

"We are not targeting en bloc buyers as there are not that many around. Previously, there were a lot of buyers from the Middle East but they have become very cautious and are cash-strapped as a result of the financial meltdown," Fong said.

Fong said Glomac will start construction on the mall, which is worth RM150 million, by the end of 2010.

By Business Times (by Sharen Kaur)

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