Emkay may form REIT
Ahmad Khalif (left) and Mustapha Kamal with a model of Mer cu Mus tapha Kamal.
PETALING JAYA: The Emkay Group is not ruling out the possibility of forming a real estate investment trust (REIT) sometime in the future.
“If it is viable, then there is a possibility that we may form our own REIT,” said founder and chairman Tan Sri Mustapha Kamal at a briefing on the commencement of works for Emkay’s newest corporate office development, Mercu Mustapha Kamal.
To-date, the group owns two Grade-A office towers – Wisma Mustapha Kamal in Cyberjaya and Menara Mustapha Kamal in Damansara Perdana. Once Mercu Mustapha Kamal is completed, the total value of the three office towers is expected to range between RM500mil and RM550mil.
In the last five years, the company has completed more than RM2bil worth of projects. It has more than RM4bil worth of projects lined up for the next five years, of which RM3.7bil is located in Cyberjaya.
Mercu Mustapha Kamal is Emkay’s latest addition to its investment portfolio, with a gross development value of RM374mil. The development will comprise two corporate office towers with a total net floor area of 468,267 sq ft in NeoDamansara, Damansara Perdana. The project is expected to be completed by November 2016.
Mustapha Kamal said the piling work for the development had already been completed. The project is pre-certified with a Green Building Index Gold rating and will be Multimedia Super Corridor (MSC) Malaysia Cybercentre-compliant once complete.
The MSC Malaysia Cybercentre status is given by Science, Technology and Innovation Ministry to niche business locations that meet MSC Malaysia standards and criteria to deliver the MSC Malaysia Bill of Guarantees to MSC Malaysia-status companies.
Chief executive officer Ahmad Khalif Mustapha believes the project will be successful due to its location. “Damansara Perdana as a location that has matured over the years. There are a few public-listed companies and multinational companies located here,” he said.
He added that concerns about a glut in office space as what Kuala Lumpur was now facing did not exist due to the high take-up rate in the area. He said most of the corporate office towers in Damansara Perdana were already reaching 90% occupancy rates.
Meanwhile, Mustapha Kamal said the company was looking to have a sustainable source of income and planned to own seven Grade-A office buildings within the next five years, with at least one in the central business district of Kuala Lumpur.