PKNS Real Estate Sdn Bhd
THE PKNS Private Real Estate Sdn Bhd (PREC) has been set up to enhance the income of PKNS through ownership of commercial assets.
“PREC is basically intended to act as an incubator to yield up and manage PKNS’ assets in order to attract good profile tenants and retailers,” said PKNS head of real estate investment and management Fakru Radzi Ab Ghani.
He said a “value creation exercise” would be carried out periodically to make sure that the assets owned were competitive and relevant to current demands and lifestyles.
With PREC, PKNS hopes to acquire more buildings with upside potential through asset enhancement exercises and to increase the capital value of properties by improving yield.
PKNS also plans to establish a bumiputra trust fund to invest in bumi stocks.
It plans to inject RM200mil and properties worth RM371mil as capital into PREC.
“This will make PREC a company with an authorised capital of RM521mil and paid-up capital of RM21mil.
“PREC will leverage on bank financing (RM200 million) to acquire Menara Worldwide,” Fakru said.
PREC being a private limited company will be able to focus on real estate investment and asset management, while PKNS will continue to focus on its core business of property development.
“PREC will have its own board that will ensure the assets owned are improved and yield increased over time. The board will also ensure PREC acquires the right assets suitable for PKNS’s Real Estate Investment Trusts (REIT) portfolio when it is launched,” Fakru said.
On the company’s future plans, PREC intends to complete the transaction of six properties totalling RM571mil as well as acquire assets domestically and overseas.
“We are in communication with a Singaporean real estate fund to undertake joint acquisition of assets worth more than RM2bil,” he said, adding that they intended to enlarge the portfolio to reach RM1bil within 12 months depending on market conditions and availability of funds.
According to Fakru, PREC would also undertake asset enhancement to improve the revenue valuation of these assets.
Some of the assets include Kompleks PKNS Shah Alam, Menara PKNS PJ, the SACC Mall and Menara Worldwide.