KLCC confident of Kompleks Dayabumi√Ęs long-term potential Sep 5, - TopicsExpress


KLCC confident of Kompleks Dayabumi√Ęs long-term potential Sep 5, 2013 - Farah Wahida KLCC Stapled Group (KLCC) is optimistic of Kompleks Dayabumi‚Äôs long-term potential, due to its connectivity to the upcoming mass rapid transit (MRT) link and the Pasar Seni LRT station, according to RHB Research Institute (RHB Research). In fact, the redevelopment of Kompleks Dayabumi is well underway, with Phase 2 set to be completed in October, noted its analyst Alia Arwina. Notably, Phase 2 of KDR will include works on the common area as well as a new connection to the nearby light rail transit (LRT) station, while Phase 3 will involve the demolishment of City Point shopping centre to make room for a 60-storey office tower with retail components and a 500-room hotel. However, Phase 3 will kick-off only once KLCC has secured an anchor tenant for the office tower. Although it is still in the drawing board, Phase 3 is expected to be completed within a period of three to five years, she added. Aside from this, KLCC also plans to construct an office block on its prime Lot D1 land, as it ‚Äúbelieves that there is still a market for premium, grade-A offices.‚ÄĚ ‚ÄúGround works on Lot D1 are expected to start in the second half of 2014 (2H14), provided an anchor tenant is secured by then,‚ÄĚ said the analyst. To stimulate inorganic growth, the company is also expected to go through asset injections to its Real Estate Investment Trust (REIT). Third-party acquisitions could also be an option, provided there is a suitable asset. Despite all these, Kenanga Investment Bank Bhd (Kenanga Research) believes that the group lacks near-term catalysts due to the absence of new development on ‚ÄėREIT-ing‚Äô Suria KLCC or potential asset acquisitions.
Posted on: Tue, 10 Sep 2013 14:46:18 +0000

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