(Source: The Malaysian Reserve)
Real estate investment trusts (REITs) have been a key investment instrument in the country. For many investors, REITs are among one of the safest bets for their investment portfolios. With consistent returns, rising values and sustainable demands, Malaysian REITs are the jewels of the property market. These are not just structures which paint the landscape, but iconic buildings which put the country on the global map. Here are the 10 most expensive REIT structures in Malaysia, based on their current market value (based on the revaluation of properties by respective REIT managers as at Dec 31, 2018 and compiled by TMR on Jan 30, 2019.)
#1 Petronas Twin Towers (KL) — RM7 billion
At the top of the chart is the Petronas Twin Towers, owned by KLCC REIT. They were the tallest buildings in the world from 1998 to 2004, and remain the tallest twin towers in the world, with a height of 452 m (1,483 ft). Located along Jalan Ampang, Kuala Lumpur, the towers have been dominating the city’s skyline since 1997. Millions of people visit the Twin Towers and the attached shopping mall, Suria KLCC each year, and it is one of the most photographed buildings in the country. A recent valuation put the sales value of the building at an astonishing RM7.01 billion, making it the most expensive structure in the country.
#2 Pavilion Kuala Lumpur (KL) — RM4.7 billion
Second on the list is KL’s most popular shopping mall – Pavilion Kuala Lumpur. Built on the former site of Bukit Bintang Girls’ School,the oldest school in the city, Pavilion KL is an award-winning shopping destination with over 550 retail outlets and restaurants. It has claimed the title as the place to shop for renowned fashion designer labels along the Bukit Bintang shopping district since it was opened in 2007. The mall hosts most of the expensive brands in the retail stratosphere, and its sales value is estimated at RM4.7 billion, making it the crown jewel of Pavilion REIT, the largest retail-focused REIT in Malaysia.
#3 Mid Valley Megamall (KL) — RM3.7 billion
Mid Valley Megamall comprises a shopping mall, an office tower block, 30 offices and three hotels — strategically located in the ‘golden area’ between Petaling Jaya, Selangor, and KL. The mall has been drawing large crowds since 1999 partly due to the number of shops and varieties available, including signature anchor tenants. The sprawling mall and its surrounding buildings is part of IGB REIT, and valued at RM3.67 billion.
#4 Petronas Tower 3 (KL) — RM2.05 billion
Petronas Tower 3 – which was opened in 2011 – is another addition to the world-class Petronas Twin Towers complex and KLCC REIT. It features a six-level extension to the Suria KLCC shopping mall, while the remaining floors are corporate offices. The 58-storey building is also surrounded by many prominent office buildings in KL’s ‘golden triangle’, including Menara Maxis and Menara Citibank. This tower alone is priced, based on market value, at RM2.05 billion.
#5 Gurney Plaza (Penang) — RM1.6 billion
Gurney Plaza is a prime lifestyle retail mall located at Gurney Drive, a popular seafront promenade in Penang. It opened in 2001, and is the second-largest shopping mall in Georgetown with 879,930 sq ft of net lettable area (NLA). It consists of nine retail floors, housing anchor tenants, and is one of the most popular shopping spots for visitors and locals in Penang. It is considered the trophy asset of CapitaLand Malaysia Mall Trust (CMMT), which is one of the largest pure-play shopping mall REITs in Malaysia.
#6 The Gardens Mall (KL) — RM1.3 billion
The Gardens Mall is located within The Gardens Hotel and Residences, adjacent to the Mid Valley Megamall. It is a a premium 6-level shopping mall housing more than 200 outlets including top fashion brands. The Gardens Mall is home to Robinsons from Singapore and Isetan of Japan, as well as Malaysia’s most premier cinema, GSC Signature. It is valued at RM1.3 billion, and part of IGB REIT’s portfolio.
#7 The Mines (Seri Kembangan) — RM728 million
The Mines is located in Selangor’s Mines Resort City and is a “family-focused” shopping mall which provides shoppers with a complete offering of retail, entertainment and dining options. It is well known for a Venetian-like canal running through the shopping mall. It has recently been transformed with major upgrading works including additional retail spaces, a revamped carpark system and additional linked-bridges. The Mines is another building under CapitaLand Malaysia Mall Trust (CMMT) and is worth RM728 million.
#8 Platinum Sentral (KL) — RM724 million
Platinum Sentral is located within KL Sentral, Malaysia’s largest transit hub – interconnecting the Kuala Lumpur International Airport transit, KLIA Express, light railway transit (LRT), mass rail transit (MRT), KTM (Keretapi Tanah Melayu) intercity, KTM commuter, and the KL monorail. It is a commercial development consisting of 5 blocks of commercial buildigs comprising office-cum-retail space and a multi-purpose hall. Major tenants include SME Corp Malaysia, SBM Malaysia Sdn Bhd and the former Land Public Transport Commission (SPAD), among others. Platinum Sentral was acquired by MRCB-Quill REIT (MQREIT) in 2015, and is currently valued at RM724 million.
#9 Menara Shell (KL) — RM650 million
Menara Shell is a commercial development consisting of a 33-storey stratified office tower with a 5-storey podium and a 4-storey basement carpark. It is situated on Jalan Tun Sambanthan, at the south western portion of KL Sentral. Menara Shell is a grade-A office tower and its unique architecture building is Malaysia’s first integrated commercial development with Leadership in Energy and Environmental Design (LEED) Gold standards. The building was acquired by MRCB-Quill REIT (MQREIT) in 2016, and is valued at RM650 million.
#10 Elite Pavilion Mall (KL) — RM580 million
Elite Pavilion Mall is one of the newest retail landmark projects located adjacent to the highly-popular Pavilion KL Mall. It is a 10-storey retail mall with an underground pedestrian tunnel connection to Fahrenheit88 mall, located directly opposite. It is one of the latest additions to Pavilion REIT, which purchased the mall and its assets for RM580 million in April 2018.