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Wednesday, May 25, 2011

Developer sees 10% rental yields from office tower

An artist’s impression of Khor Joo Saik Sdn Bhd’s Menara Binjai

KUALA LUMPUR: Property developer Khor Joo Saik Sdn Bhd expects to generate a rental yield of 10% within three years of operations of its Grade-A office tower, Menara Binjai.

The building, which has a gross development value of RM180mil, is strategically located along Jalan Binjai and Jalan Ampang, and will be launched in the final quarter of this year, according to director Chua Guan Hock.

“Our building is strategically located on prime (KLCC) land with a lot of amenities and a good transportation network,” he told StarBiz in an interview, adding that potential tenants would be offered a competitive rate of RM7.50 per sq ft. Khor Joo Saik Sdn Bhd owns the land where Menara Binjai is being built.

“Good thing we don't have to buy the land with heavy borrowing costs. (Because of this) we have the strength to be very competitive with the rentals,” said Chua.

Chua said he expected 75% of the offices to be taken up within the first year of operations, adding that the company was looking to attract tenants within the oil & gas, finance, services and trading sectors.

“We have had enquiries from multinational companies as well as embassies as many of them (embassies) are located nearby. We're looking at a good balance of locals and expatriates (as tenants),” he said.

Chua said another factor that made Menara Binjai appealing to potential tenants was the fact that it was a certified green office tower.

The tower has received the Green Mark Gold Certification (Provisional) by the Singapore Building and Construction Authority (BCA) as well as the provisional certification from the Malaysia's Green Building Index (GBI), making it the first dedicated office tower in the country to receive both awards.

The 35-storey Menara Binjai will have four levels of basement parking and another four levels of podium parking. The office floors, which have a net lettable area of between 12,000 sq ft and 13,000 sq ft, start from level six onwards.

“We're hoping to launch the building on Nov 11, which is a very auspicious date,” said Chua.

By The Star

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