BlackRock To Sell Two Towers, Mall In Kuala Lumpur
News: US investment manager BlackRock is planning to sell two office towers and a mall in Kuala Lumpur, Malaysia and seeking potential suitors for the purchase, according to a Bloomberg report. The company intends to dispose the 62-storey Vista office tower and the 39-storey Integra office building along with a retail mall in the Intermark, a mixed-use development in Kuala Lumpur. The bids will be closed on May 30 and the transaction is expected to be completed in November. The properties are being marketed by Savills as per the sale document.
BMI View : Overall, BMI has a positive outlook for the Malaysian commercial real estate sector. In particular positive demographics with increasing income levels, strong FDI levels and the government's plan to increase the population of the Kuala Lumpur area to 10mn from the current 6mn by 2020 will also spur greater property demand. Downside threats to our outlook include: an oversupply of office and retail space, a mismatch of investor specifications and new developments and China's slowing economy negatively impacting demand for industrial space.