GEORGE TOWN: Hunza Properties Bhd plans to undertake a RM3.5bil mixed development scheme in Bayan Baru, the south-west district of the island, two years from now.
Group executive chairman Datuk Khor Teng Tong said the project on a 40-acre site would comprise a shopping mall, a hospital, an indoor amusement park and a college.
An auditorium with a seating capacity of 3,000 to 5,000 people and an automobile mall that featuring branded cars are also in the pipeline.
“About 55% of the scheme will comprise commercial properties managed by us.
“We are now working with consultants from Singapore on the concept,” he said.
Khor added that the group would develop 700 low-cost units for the squatters who would be relocated.
On the group’s projects in the pipeline, Khor said there were now about RM800mil worth of projects.
These projects would be undertaken from this year till 2016.
The projects include the RM350mil Alila II, RM250mil high-rise condominium scheme in Segambut and a RM204mil landed terraced property project in Bandar Putra Bertam, Kepala Batas.
On its Gurney Paragon office tower block in Gurney Drive/Kelawei Road, Khor said about 70% of the building with a total floor area of 100,000sq ft had been leased out.
“Each floor has a 10,000 sq ft of floor area.
“The Hunza corporate office occupies the first top two floors, while the rest is for leasing.
“We are renting out per sq ft for around RM3.20 to RM3.50.
“When fully occupied, we expect to generate from rental about RM3mil per annum,” he said.
On the RM500mil Gurney Paragon shopping mall scheduled for opening in July, Khor said he expected the mall to generate a yearly return of 10% to 12% of the mall’s total cost.
“We have leased out around 75% to 80% of the mall, which has a total lettable area of 700,000sq ft.
“There would be at least 270 to 280 retail outlets for the mall,” Khor added.
Hunza expects to generate returns on the investment for its Gurney Paragon shopping mall in eight to 10 years.
“All the retail outlets should be fully operational in the second year after the opening,” he said.
Source by: The Star