KUALA LUMPUR – Within the next six to twelve months, Selangor State Development Corporation (PKNS) is planning to take over a local real estate investment trust (REIT), in a decision to expand their business, according to The StarBiz.
The tabloid newspaper also exposed that the REIT’s total value amounted to not less than RM600 million (S$249.2 million), though Othman Omar, general manager of PKNS, denied the enlisting of the said investment trust for absorption at first.
However, Mr. Othman said in an interview with Petaling Jaya that they are hoping to acquire REIT before the year ends, and even channel some of PKNS’ properties to it so that the investment trust would be twice as large as it was.
Mr. Othman added, “We plan to reap the best benefits during this crisis to position ourselves. This is the best time to get skilled workers, cheaper land and assets,” in reference to the said acquisition of the investment trust.
PKNS also targets to further develop the Kompleks PKNS, Wisma PKNS, the Shah Alam convention centre and the Shah Alam City Centre Mall, a 500,000 sq ft mall.
In addition, PKNS plans to enlist in the Klang Valley a few developing shopping malls and in Jalan Bukit Bintang the 27-storey Menara Worldwide tower, which the World Holdings Bhd (WHB) owned.
PKNS aims to double the profit margins up to 40 percent and to obtain this year a record of RM1.06 billion revenue.
Currently, PKNS has about 4,000 undeveloped lands in the Klang Valley and is coordinating with other state arms like Permodalan Negeri Selangor Bhd, Perbadanan Kemajuan Pertanian Selangor and Kumpulan Hartanah Selangor Bhd to develop their properties.