By Sharen Kaur
Published in NST on February 15, 2014
PETALING JAYA: Sunway REIT is upbeat its asset portfolio will exceed RM7 billion by 2018, led by current asset enhancement initiatives (AEI) and third party acquisitions.
Sunway REIT bought Sunway Putra Place during a public auction in 2011 for RM522 million.
Ng said the property will have a new look by June next year and expects to recoup Sunway Putra Place investments within 12 years at a return on investment rate of between 7.5 and eight per cent.
"The asset will be revalued in the future and there is potential for capital appreciation, which will add to the value of our current portfolio.
"We do expect improvements in terms of occupancy and rental rates and additional net lettable area, which will lead to a quantum leap in net profit income post-refurbishment," he said at a briefing, here, yesterday.
On the third-party acquisitions, Ng said SREIT will consider them but the assets must be able to provide a seven per cent yield.
He, however, said the company is in no hurry to acquire new properties.
"High property prices make it difficult for us to expand via acquisition of quality, yield-accretive assets. The key drivers for growth will be organic through AEI and asset turnaround," Ng said.
The last SREIT acquisition was in 2012, when it bought Sunway Medical Centre from Sunway Bhd for RM310 million.
Published in NST on February 15, 2014
PETALING JAYA: Sunway REIT is upbeat its asset portfolio will exceed RM7 billion by 2018, led by current asset enhancement initiatives (AEI) and third party acquisitions.
However,, the value will still be far behind that of KLCC Property Real Estate Investment Trust, which has RM15 billion worth of properties in its portfolio.
Sunway REIT, the second largest local REIT player, currently has a portfolio worth RM5.18 billion.
Sunway REIT, the second largest local REIT player, currently has a portfolio worth RM5.18 billion.
Its assets include the Sunway Pyramid shopping mall, Sunway Carnival shopping mall, SunCity Ipoh hypermarket, Sunway Resort Hotel & Spa, Pyramid Tower Hotel and Sunway Putra Place.
Sunway REIT Management Sdn Bhd (SREIT) chief executive officer Datuk Jeffrey Ng said the company has RM1 billion to reinvest in AEI to boost some of the current assets.
The manager of Sunway REIT is investing RM460 million to transform Sunway Putra Place in Kuala Lumpur into a five-star asset comprising Sunway Putra Mall, Sunway Putra Hotel and Sunway Putra Tower.
Sunway REIT Management Sdn Bhd (SREIT) chief executive officer Datuk Jeffrey Ng said the company has RM1 billion to reinvest in AEI to boost some of the current assets.
The manager of Sunway REIT is investing RM460 million to transform Sunway Putra Place in Kuala Lumpur into a five-star asset comprising Sunway Putra Mall, Sunway Putra Hotel and Sunway Putra Tower.
Sunway REIT bought Sunway Putra Place during a public auction in 2011 for RM522 million.
Ng said the property will have a new look by June next year and expects to recoup Sunway Putra Place investments within 12 years at a return on investment rate of between 7.5 and eight per cent.
"The asset will be revalued in the future and there is potential for capital appreciation, which will add to the value of our current portfolio.
"We do expect improvements in terms of occupancy and rental rates and additional net lettable area, which will lead to a quantum leap in net profit income post-refurbishment," he said at a briefing, here, yesterday.
On the third-party acquisitions, Ng said SREIT will consider them but the assets must be able to provide a seven per cent yield.
He, however, said the company is in no hurry to acquire new properties.
"High property prices make it difficult for us to expand via acquisition of quality, yield-accretive assets. The key drivers for growth will be organic through AEI and asset turnaround," Ng said.
The last SREIT acquisition was in 2012, when it bought Sunway Medical Centre from Sunway Bhd for RM310 million.
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