KLCCP eyes RM1bil assets, plans acquisitions to boost Reit portfolio

PETALING JAYA: KLCC Property Holdings Bhd (KLCCP) aims to buy up to RM1bil assets this year to increase the size of its real estate investment trust (Reit) assets portfolio.

“We have the capacity to acquire RM1bil assets, and the type of assets we are looking should be in line with our profile and located in the golden triangle as well as meeting our shareholders value accretion,” said KLCCP group chief executive officer Datuk Hashim Wahir.

He said the group had obtained its shareholders’ approval to issue new shares up to 10% of the paid capital for the potential acquisition.

KLCCP comprises KLCCP Group and KLCC Reit. KLCCP and KLCC REIT is traded as a security known as the KLCC Stapled Securities (KLCCSS) listed under the Reit sector.

“At the current share price, we would be able to raise slightly more than RM1bil, and we will carry out the exercise once we found the assets,” Hashim said after KLCC REIT and KLCCP AGMs.

Currently, the KLCCSS has share base of 1.8 billion shares and a market capitalisation of RM11.5bil.

Yesterday, KLCCSS’ shares were unchanged at RM6.35 with 1.43 million traded.

KLCCP has assets worth more than RM15bil. The Reit portion portfolio includes the Petronas Twin Towers, Menara ExxonMobil and Menara 3 Petronas, valued at RM8.8bil.

KLCCP Group has Suria KLCC, Mandarin Oriental, Kompleks Dayabumi and Lot D1 under its stable.

Hashim said KLCCP was in the midst of “sprucing up” the Kompleks Dayabumi area, including to build a 60-storey building on the site where City Point was.

“We will take down City Point and develop a building that has hotel, office space and some retail space,” said.

Hashim declined to elaborate on the proposed building but said he expected works to commence in mid-2015.

He added that the group had already secured the anchor tenant for the proposed building.

On the proposed retail and office space Lot D1 in the KL City Centre area, Hashim said the group was still looking for its anchor tenant before embarking on the project.

“It is very challenging but we hope to secure it by this year.”

The group preferred to have multinationals as the anchor tenant of Lot D1, and the proposed development would take four years to complete, Hashim said.