IGB: Business picking up after quiet first qtr

KUALA LUMPUR: IGB Corp Bhd, which owns the retail space in Mid Valley City, has started to see business beginning to pick up since the second quarter after a rather quiet first quarter, managing director Robert Tan said.

He said May and June will be the peak season for shoppers and the company will continue with its various marketing campaigns to boost tenants’ revenues.

He said some RM5 million will be spent this year to upgrade some parts of the mall to improve the quality of visitors’ shopping experience.

Mid Valley Megamall continues to be a key shopping destination in the Klang Valley. Last year, over 38 million people visited the Mid Valley Megamall which has a high occupancy rate at 99 per cent.

The adjacent mall, the Gardens Mall also had a 99.5 per cent occupancy rate last year.

Last year, total revenue from these two retail assets, Mid Valley Megamall and The Gardens Mall stood at RM79.8 million and RM35.5 million respectively.

Tan spoke to reporters after the company’s IGB REIT annual general meeting’s here yesterday.

He said the company will be launching two new properties in the Klang Valley this September with a total gross development value of RM165 million.

The projects are a condominium development in Jalan Tun Razak called Three28 Tun Razak with a gross development value (GDV) of RM69 million and a bungalow development project called Park Manor in Sierramas with a GDV of RM96 million.

The company is also in the design process of a Mid Valley-like mall in Johor called Southkey Mall, a mixed commercial development and has an estimated GDV of about RM6 billion.

“We want to attract Singaporean investors to this development,” said Tan.

Asked if it has plans to invest in more properties here and abroad, he said the company is always on the lookout but will only reveal details if things are finalised.

He said IGB is in talks with some parties on a few land deals.

On IGB REIT’s outlook for this year, Tan said he expects the performance to be maintained as long as interest rates remain unchanged.

IGB REIT was listed in September last year and its proceeds are being used to fund the group’s expansion activities.

Tan said the five-year-old Gardens Mall should act as a growth driver for IGB REIT as 54.2 per cent of its occupied bet lettable area is expiring end of this year and the second round of rental adjustment will give the mall the opportunity for an upward rental revision.

Business Times : nation

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