Malaysian Resources to build RM1.8b offices (ext: BT)

MALAYSIAN Resources Corp, developer of the nation’s biggest transport hub, will build two office projects valued at RM1.8 billion (US$517 million), gauging that property markets will revive as the global recession eases.

Malaysia’s biggest office supplier expects to sign up a foreign oil company to anchor the RM1 billion tower at the 348 Sentral project in Kuala Lumpur by taking up as much as 60 per cent of the building’s office space, Malaysian Resources managing director Shahril Ridza Ridzuan said. The project also includes serviced apartments.

“Once we have our office deals signed up, then that seals our pipeline for the next three years in term of revenue and profits,” Shahril said. “When you are willing to take the view that we’re going to come out of this, a three-year timeframe is well within striking distance of putting your office on the market.”

Malaysia Resources expects to win RM1 billion of new orders this year, with 30 per cent of that coming from projects to clean up the country’s rivers, Shahril said. The company won two building contracts valued at RM239 million over the past two months, its first construction jobs secured this year, increasing its order book to RM2 billion, Shahril said. - Bloomberg