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Tuesday, August 17, 2010

PNB primed for KL Golden buys

Permodalan National is looking at acquiring B grade (commercial buildings) with potential and sell them to PNB's real estate investment trust, Amanah Harta Tanah PNB.

Permodalan National Bhd's (PNB) asset management unit is in talks to buy commercial buildings in the heart of Kuala Lumpur as it seeks to provide assets for its property trust.

PNB Commercial Sdn Bhd, which has RM1 billion of assets, plans to buy properties in the Golden Triangle area, improve their performance and sell them to PNB's real estate investment trust (REIT), Amanah Harta Tanah PNB.

"We have identified a few buildings within the Golden Triangle. We are looking at the feasibility and evaluating the target assets," PNB Commercial chief executive officer Datuk Mohamed Marzuk Basir said.

However, there is no set allocation or fund for these acquisitions.

When the study is completed, it will be presented to the board to decide on the acquisitions.

"We are looking at B grade (commercial building) with potential," Mohamed told Business Times in an interview.

"We will take an underperforming asset and then nurture it to a respectable yield level within three to five years," he said.

These buildings typically have about 100,000 sq ft to 150,000 sq ft nett lettable area.

PNB Commercial currently manages 19 assets. Out of this, 11 are owned and managed by PNB Commercial, while the remaining eight are managed for PNB.

Apart from office buildings, assets under its management include retail and hospitality properties.

For the time being, it is not looking at expanding its retail or hospitality portfolio but only enhancing its existing assets.

By Business Times

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