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Tuesday, October 13, 2009

Low Yat sees RM55m rentals from Rivercity

Leow Sian Hong ... 'We found Jalan Ipoh to be a strong catchment area'.

KUALA LUMPUR: Low Yat Group, which is investing RM7mil to upgrade its Rivercity mixed development at Jalan Ipoh here, expects the project to generate RM55mil in rentals over the next five years.

Deputy general manager Leow Sian Hiong said she expected rental rates to double to RM8 per sq ft once the upgrading works were completed.

“We expect revenue of RM55mil over the next five years. We want to transform one of Kuala Lumpur’s oldest and bustling areas into a vibrant lifestyle hub,” Leow told a media briefing yesterday.

Refurbishment works started early this year and is expected to be completed by year-end.

Leow said the group was renting up to 162,000 sq ft of space and was trying to secure tenants, especially for a supermarket it had started building within the development.

“We currently have an occupancy rate of 50%. With the supermarket coming in, we should reach 70%,” she said.

Low Yat, in a statement issued yesterday, said it was targeting a 90% take-up rate for Rivercity by the first quarter of 2010.

“We are very selective about the tenants we choose,” Leow said.

In a slide show presentation, Leow said the bulk of the lettable areas would be for food and beverage outlets and offices.

Rivercity will also offer home furnishing outlets, beauty and wellness centres, education facilities like the Victoria International College, edutainment, telecommunications and service centres.

“Located on nine acres of prime land, Rivercity is positioned to meet the discerning taste and needs of the ever growing population of more than 300,000 families, college, schools, business and commercial entities with its 5km radius,” Leow said.

“It will also help boost the rental yields of our Rivercity condominium which is located within the area.”

She said the group decided to embark on the upgrades following an in-depth study on the locality.

“We found Jalan Ipoh to be a strong catchment area as it is strategically located within the city centre with multiple roads and highways accessible via Jalan Tun Razak, Jalan Kuching, Jalan Duta, North Klang Valley Expressway, Duta-Ulu Kelang highway and the Penchala Link,” Leow said.

By The Star

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