28 July 2007

Extracted from New Straits Times, Saturday 28 July 2007

Buyers zero in on new investment opportunity in Kelana Jaya

Developer SMI Cityhomes Sdn Bhd (SMIC) believes the commercial property market is heating up, and it has the numbers to prove it.

The company’s Zenith Corporate Park (ZCP) project now taking shape on 9.685 acres in Kelana Jaya, Selangor, has already notched 95 per cent sales for its first phase of 80 three- and four-storey shop-offices- all within two weeks of the soft launch.

According to SMIC group head of sales and marketing Matthew H.S. Ng, the project was only officially launched earlier this week, but by then sales had already exceeded 90 per cent.

Ng believes that the brisk sales are a clear indication that there is pent-up demand for commercial properties and that investors are on the lookout for opportunities in favorable locations.

“Buyers are beginning to realize that, after securing a house, commercial properties represent an ideal second investment vehicle, offering faster and more lucrative returns than residential properties”, he said.

“The fact that ZCP is located within a well-established neighborhood that is still experiencing vibrant growth served to improve its appeal among investors.”

Located just off the Damansara-Puchong Expressway and opposite the Giant Hypermarket, the project’s 80 en bloc units will serve a living and working population of 50,000 within a 1km radius.

“Also, by offering units that are three and four-storeys in height, rather than the typical six or seven, we have given the shop-offices wider appeal, making them affordable to a larger group of buyers,” Ng said.

Priced from RM1.316 million, the typical three-storey en bloc units will offer 4,944sq ft of space and dimensions of 26ft by 75ft.

Based on an interest rate of 6.95 per cent and an 80 per cent loan repaid over 20 years, that works out to a monthly repayment of RM7,728.

Ng pointed out that this represented “an excellent investment opportunity” as typical units are expected to gross rentals of at least RM10,968 a month. That translates to gross earnings of RM3,240 a month or RM38,880 per annum for an investor.

“Adding to ZCP’s value will be features such as contemporary facades, 26ft-wide frontages, lifts to service each block, 24-hour security, well lit and secure walkways as well as over 1,800 car parking bays at the basement,” he said.

Occupants of the corporate park will also enjoy speedy access to various parts of the Klang Valley, being just five minutes from the Federal Highway or North Klang Valley Expressway and 10 minutes from the Penchala Link, New Pantai Expressway and the Sprint Highway.

In addition, the Kelana Jaya neighbouhood offers amenities such as schools, colleges, medical facilities and shopping outlets.

Ng expects the shoplots at ZCP to be occupied by boutique retailers, F&B outlets, professional service-based companies, hair and beauty salons, convenience stores and small business operators when it is up-and –running by 2010.

The project’s second phase, which would be launched later this year, will comprise a 13-storey office tower and a pair of 20-storey mixed-purpose towers.

The latter will house 26 retail lots, 358 serviced apartment suites and a podium deck that will accommodate a swimming pool, gym and clubhouse facilities.

The RM330 million ZCP is envisioned to be a fully integrated commercial address boasting retail, office and residential components.

It will offer around one million square feet of commercial space when fully completed by 2011.

SMIC is wholly owned by South Malaysia Industries Bhd.

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