Hap Seng to develop 'Menara Hap Seng 3' office building for RM312 million

KUALA LUMPUR: Hap Seng Consolidated Bhd’s property arm Hap Seng Land Sdn Bhd will be developing a new commercial office space building, named “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, Jalan P. Ramlee. It comprises 20 storeys of office space, five podiums, a showroom and a six level basement car park, with a net lettable area of 240,000 sq ft. The Mercedes-Benz Autohaus will be relocated to the building once completed.
Construction works, which will be undertaken by Grand Dynamic Builders Sdn Bhd, are expected to go on for 26 months, starting today, and is scheduled for completion in December 2019.
The project, which will sit on a 0.72 acre land, acquired by the group in 2004, will 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 annual rental revenue of between RM20 million and RM21 million from 2020 onwards, considering demand for office buildings at prime locations within the Golden Triangle.
“If it is a good location with a good design there will still be demand,” Khor added.
He said, the area is particularly attractive to foreigners, due to its strategic placement in the city centre and within close distance to the Petronas Twin Towers.
Commenting further on the conditions of the property market, he said fluctuation in Malaysian property prices is not as drastic as other markets, where prices could either skyrocket or plunge.
Both Menara Hap Seng 1 and 2 are almost fully occupied, with a notable number of foreign companies serving as tenants.
Upon completion of Menara Hap Seng 3, all three buildings will be linked together via pedestrian walkways and basement connections.
Hap Seng Land also has two other property developments in the pipeline – a service apartment project in Kuala Lumpur and an industrial business park in Shah Alam.
Hap Seng Land, which has a landbank of over 2,000 acres in Peninsular Malaysia, is also looking to expand its land holding within the Klang Valley. It is developing the KL Metropolis Project on a joint venture basis with Naza TTDI Sdn Bhd.