CIMB chief warns of commercial property bubble in KL

December 25, 2013 Leave a comment

PUBLISHED DECEMBER 24, 2013

CIMB chief warns of commercial property bubble in KL

He calls on govt not to embark simultaneously on its massive projects

PAULINE NG

IN KUALA LUMPUR

CIMB group chief executive Nazir Razak suggested that the government reconsider the mammoth supply of commercial space in Kuala Lumpur to prevent an oversupply – PHOTO: BLOOMBERG

AS government strategic development agency 1MDB stepped up its investment pitch for the new Tun Razak Exchange (TRX) financial district to investors last week, CIMB group chief executive Nazir Razak suggested that the government reconsider the mammoth supply of commercial space in Kuala Lumpur to prevent an oversupply.1MDB’s unit, 1MDB Real Estate Sdn Bhd, as master developer, had formally invited qualified international and domestic investors to submit proposals for Phase 1 of the 70-acre TRX and to be part of its strategic development following “strong expressions of interest from a host of local and global players”.

There has been “overwhelming” expressions of interest for about half of Phase 1 which will comprise up to 10 acres, a source told BT.

He said local investors are mulling over a number of the one to 1.5 acre plots for corporate headquarters or investment. However, it remains to be seen if interest is sustained when the actual bidding takes place.

Filed under Macro Trends

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