Corporate Investor Opportunities

Property Options

Investments in commercial property typically generate a stable rental yield between 6-10%.

Shop Offices & Shop Houses
Shop offices have combination use and can potentially offer higher return on investment. Owners can opt to rent out the ground floor to food & beverage outlets or as showroom space. Upper floors are rented out as office space.

En Bloc Towers (Offices or Condominiums)
Grade A commercial office buildings in prime areas in the central business district or growing satellite towns are favoured by large corporations and multinational companies. Occupancy levels fall within the average range of 80% - 90% in the city centre although turnover could be higher in the suburbs. Currently, most Grade A buildings are found in Kuala Lumpur.

Industrial Property
Industrial property is found in clustered areas designated as industrial estates. The terms industrial parks and technology parks are also commonly used to describe industrial areas, depending on the industries concentrated there.

Commercial Land
Vacant land that investors can purchase for commercial use. The purchaser must state their intentions and provide initial plans on how the plot of land will be developed. The development will be subject to approval from the relevant authorities.

Hotels
At the end of 2009, Malaysia housed approximately 150 hotels graded 4 stars and above. Average hotel occupancy rates are fairly stable around 60 – 65%. In tandem with the increased tourist arrivals expected from this year onwards, at least 10 new international hotels are scheduled to open across Malaysia in 2010.

Shopping Malls
Average occupancy rates for retail malls in Malaysia hover around 90%. Compared to the booming popularity of regional malls in the past, the current trend and demand is moving towards suburban malls.

As prime land prices in city centres of key Malaysian states continue to appreciate, developers look towards cheaper land in suburban areas complemented by the strong demand for neighbourhood malls that serve local communities.

Shopping malls in Malaysia also generate stable recurring income, offering developers further opportunities through sale and leaseback arrangements or REIT placements.