Monday, 1 July 2013

EPF to buy mall in formerly abandoned landmark for RM1.2bil

Vision City, one of Kuala Lumpur’s most prominent failed landmarks, is abandoned no more. Widely-panned as an eyesore on the level of Plaza Rakyat, Vision City is being revived as the RM2.5bn Quill City, a 7-acre mixed development at Jalan Sultan Ismail. Anchoring the development is the 6-storey Quill City Mall, whose highly visible, half-built shell had lain disused for the better part of a decade. Quill City will also feature a residential and office tower. 
  • Although slated to open in time for Hari Raya next year, the mall has already pre-leased more than 50% of its space, Quill group executive director Datuk Michael Ong told StarBiz. "People still think the place is abandoned, but it's all happening inside. We've been banging away for the past six months," he said in an interview. 
  • The privately-held Quill has a lot riding on this project, not least because it has agreed to sell the mall in its entirety to the Employees Provident Fund (EPF) for up to RM1.2bn, or RM1,561psf. 
  • This is believed to be EPF's first purchase of a retail mall in Malaysia. The pension fund had accepted the offer to buy the mall in Dec 2011, followed by the signing of the sale and purchase agreement in March this year. The sale is subject to certain "performance targets" such as physical completion within three years and a minimum occupancy of 70% within 12 months of commercial operations, according to a RAM Ratings report in March. (Starbiz)


Source: CIMB Daybreak - 01 July 2013

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