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Thursday, October 15, 2009

Emkay sees 8pc rental yield from building

EMKAY Group is confident of achieving an eight per cent rental yield from its Menara Mustapha Kamal starting next year, its chairman Tan Sri Mustapha Kamal Abdul Abu Bakar said today.

He said the yield was achievable following expectation of a full occupancy rate by middle of next year.

"The group is now in the midst of discussions with potential tenants such as multinational companies (MNCs)," he told reporters at the handing over of Menara Mustapha Kamal to the group by developer Tujuan Gemilang Sdn Bhd.

According to Mustapha Kamal, some of the MNCs were preparing to move in by next year.
"They are now waiting to complete the rental contracts at their existing premises before moving into our building," he said.

Mustapha Kamal said the building's rental offering of RM4 per square feet was considered attractive as other areas in the Klang Valley were offering RM8 per square feet.

The eight per cent yield target was also due to the group's plan to list the building under real estate investment trust (REIT) in the next two to three years, he said.

The building, he added, was purchased from Tujuan Gemilang at RM85 million but the market value was said to be at RM120 million.

Mustapha Kamal said the group was occupying 43,000 sq ft on six levels of the building while the remaining 160,000 sq ft were available for rental.

He said the project, which includes the PJ Trade Centre, started in 2006.

By Bernama

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