Dec 31 2020, 06:40 PM
QUOTE(Cubalagi @ Dec 29 2020, 10:21 PM)
Petronas rents nearly 75% of klcc office space. Last month, Petronas renewed the lease to 2041/42. Thereafter, earlier this month, Petronas sold a big block of their Klccs shares (reportedly to pay government dividends) to ASB. I dont think the timing of lease renewal was a coincidence. Likely something insisted upon by ASB.
Not that I'm aware of. Maybe because we have fewer Reits n Mreits tend to have low leverage but now with the pendemic maybe this will change.
KLCCS, being the strongest, still has less than 20% gearing.
That comes to the question how much petronas can keep renting that. Few questions.Not that I'm aware of. Maybe because we have fewer Reits n Mreits tend to have low leverage but now with the pendemic maybe this will change.
KLCCS, being the strongest, still has less than 20% gearing.
1. Do they really need so much office space?
2. How many percent of people can actually work from home.
3. How long the oil and gas price will stay currently?
4. Can they keep current burden or will there be another layoff?
Not only Petronas but many company as well. When that happens, there will be more cheaper offices around which will lure these big company to move there.
Lets say TRX once finished and they offer the same price as KLCC, will u rent KLCC which is old or TRX? Of course TRX. But as u said been locked. Some situation these company can just pay a penalty and run off. I dont think so la coz KLCC also related to petronas.
Back to the question. Do we want to take risk?
Just my 2sen. But I do think Reits like IGB would be good. No matter what, people have to eat and have to shop and so far IGB is alot better compare to others. Just a feeling. Maybe someone one can share the data 2months later for the year 2020.
This post has been edited by knight: Dec 31 2020, 06:42 PM
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