PETALING JAYA: Great Eastern Life Malaysia’s (GELM) Menara Great Eastern 2 (MGE2), which is in its advanced stage of completion, is poised to attract potential tenants and investors given its attractive location, competitive rental rates and emphasis on health and safety.
Savills Malaysia managing director Datuk Paul Khong said MGE2, which is located along Jalan Ampang, will help to rejuvenate the entire area.
“This is the quiet part of prime Jalan Ampang, with the LRT station just a few minutes away, ” he told StarBiz.Khong said MGE2 will lead the office space recovery by bringing back the tenants and office crowd to spur growth in this vicinity.
Savills Malaysia is currently assisting GELM to lease out its buildings.
Targeted to receive its certificate of completion and compliance by the end of this quarter, MGE2 is a 19-storey Grade A office building with a net lettable area of 211,698 sq ft.
With an estimated development cost of RM110mil, Khong said the green building index-certified MGE2 was redeveloped with an emphasis on environmental sustainability and safety.
Khong noted that the local office market is facing an oversupply situation currently, adding however that the cycle will not last forever. “Oversupply of office space has always been a long-term issue in the Klang Valley, but research has shown that there are still some pockets of demand for offices in selected locations.”
Khong said MGE2 is targeting the mid-market segment that does not compete directly with the top end of the office market.
“MGE2 offers a good option for tenants to take good space at affordable rents within the city centre.”
Khong said MGE2 offers an attractive rent of RM4.50 per sq ft.
“Most of the new office buildings completed over the last three years with a Kuala Lumpur address usually command an asking rent of RM7 per sq ft and above, ” he said.
Commenting on the impact of the Covid-19 pandemic on the office market, Khong said organisations will now give bigger emphasis on safety and quality working environments.
“Plus, modern flexible workspaces will continue to be a highlight, with organisations adopting hygiene policies, proper cleaning protocols, social distancing practices, security screenings, ventilation and filtering systems.”
GELM is a wholly-owned subsidiary of Great Eastern Holdings Ltd, which in turn is owned by Oversea-Chinese Banking Corp Ltd.
Khong said GELM generally invests in purpose-built office buildings that are traditionally meant for owner occupation purposes.
It has properties in various states throughout Malaysia, such as Ipoh, Johor Baru, Seremban, Penang, Kota Kinabalu, Kuching, Sibu and Tawau.
The more prominent properties include Equatorial Plaza (Jalan Sultan Ismail), Menara Great Eastern, Great Eastern Mall and Seri Hening Residence (Jalan Ampang), Menara Weld and The Weld Shopping Centre (Jalan Raja Chulan).