UPGRADING WORKS: Retail podium to be demolished for high-rise office-cum-residential tower, says source

KOMPLEKS Dayabumi, one of the oldest skyscrapers in Kuala Lumpur, will get a RM900 million upgrade, with its retail podium demolished to make way for a high-rise office-cum-residential tower.

KLCC Property Holdings Bhd (KLCCPH), a member of Petroliam Nasional Bhd (Petronas) Group via its wholly-owned unit Kompleks Dayabumi Sdn Bhd, is refurbishing the 35-storey Menara Dayabumi for around RM50 million to RM70 million while its annexed six-storey retail podium, City Point, will make way for the new tower block.

The upgrading plan, which started last year, is slated to be completed in 2015 or 2016.

KLCCPH chief executive officer Hashim Wahir did not respond to Business Times queries.

Menara Dayabumi, a landmark in Kuala Lumpur, was the site of Malayan Railway workshops and depots from 1900s to 1981.
The General Post Office, a company controlled by Tan Sri Syed Mokhtar Al Bukhary and located adjacent to the complex, however, is not up for redevelopment.

Business Times understands that KLCCPH is expected to raise the rental rates by more than 50 per cent and, thereby affect majority of its tenants.

"KLCCPH is looking at growing its recurring income base and the upgrading of the complex is crucial to meet certain targets," said a source.

For fiscal year 2010, KLCCPH increased its office rental rate for Kompleks Dayabumi from RM4 per sq ft to RM5 psf through internal upgrades.

According to KLCCPH's 2011 annual report, the complex managed to yield rental growth with higher rates with refurbishment to the lift lobbies.

That had boosted its revenue by 13 per cent year-on-year.

The source said the audited net book value of the complex, which was RM330 million at March 31 2008, would be surpassing the RM700 million mark once renovations are completed.

Construction on the complex began in 1982 and was completed in 1984. The Urban Development Authority was the owner then until KLCCPH took over in 2005.

Menara Dayabumi was the former headquarters of Petronas before the Petronas Twin Towers were built.

Current tenants include several Petronas subsidiaries, CIMB, Maybank, BSN, Mercy Malaysia, Malaysian Economic Research and retailers.

Read more: RM900m facelift for Kompleks Dayabumi http://www.btimes.com.my/Current_News/BTIM...l#ixzz2OziT65ge