SINGAPORE: CapitaLand Ltd subsidiary CapitaLand Commercial and Integrated Development Ltd (CCID) has agreed to buy a prime freehold office tower in Kuala Lumpur for RM112.5mil.

The 12-storey office building, Wisma Technip, was sold by Mega Maju Sdn Bhd, a subsidiary of Goldhill group of companies. Wisma Technip’s 233,000 sq ft of net lettable area is currently fully occupied.

''Wisma Technip is a prime office property with a strategic location in KL’s central business district and this is a timely purchase,'' said CCID chief executive officer Martin Tan.

He said the KL office market had picked up significantly since the Asian financial crisis of 1997 and demand for investment-grade office properties was rising.

''Wisma Technip, being well-leased, is a suitable candidate for a REIT (real estate investment trust) to own,'' Tan said. ''We are confident that occupancy and rental for good quality office space will increase and we are actively looking out for more acquisition opportunities in Kuala Lumpur.''

The purchase is subject to the Government approval.

CapitaLand’s presence in Malaysia includes a 30% stake in the 50-storey Menara Citibank office building in Kuala Lumpur’s Golden Triangle. It also manages the popular Gurney Plaza Mall in Penang.

Through CapitaLand Financial, it is involved in the Hampshire Residences, Kiaraville and the Marc Serviced Residence projects in Malaysia.

CapitaLand Financial has an indirect stake in these developments and provides project design, marketing and management advisory services.

Through United Malayan Land Bhd, it has interests in housing projects.

And more recently, CapitaLand was involved in Suasana Sentral Loft, the second phase of the Suasana Sentral development in Kuala Lumpur.

Source : The Star  30/09/2005