KUALA LUMPUR: Hap Seng Consolidated Bhd’s property arm Hap Seng Land Sdn Bhd will be developing a new commercial office space building “Menara Hap Seng 3” for a construction cost of RM312 million.
Targeting foreign multinational companies, the building will be built on the former site of the group’s Mercedes-Benz Hap Seng Star Autohaus on Jalan P.Ramlee. It comprises 20 storeys of office space, five podiums, a showroom and six levels of basement car park, with a net lettable area of 240,000 sq ft.
Construction works, which will be undertaken by Grand Dynamic Builders Sdn Bhd, are expected to go on for 26 months, starting tomorrow and is slated to be completed in December 2019.
The project is to be financed through internally generated funds.
Speaking to reporters at the ground breaking ceremony today, Hap Seng Land property division (West Malaysia) COO David Khor said the group is expecting to rake in an annual rental revenue of between RM20 million to RM21 million from 2020 onwards, considering demand seen for office buildings at prime locations within the Golden Triangle.
Currently both Menara Hap Seng 1 and 2 are almost fully occupied.
Apart from that, Hap Send Land also has two other property developments in the pipeline – service apartment project in Kuala Lumpur and industrial business park in Shah Alam.
At the noon break, Hap Seng’s share price was unchanged at RM9.31, with some 1,400 shares changing hands.