Penang Malls Sold For Over RM1bil     PENANG: Three upmarket shopping malls in Penang – Gurney Plaza, Queensbay Mall and Island Plaza – have recently been sold for over RM1bil.   Sources told StarBiz that Gurney Plaza and Island Plaza had been sold to a US insurance group based in Singapore.   “Gurney Plaza has been sold for about RM700mil,” a source said. It is not known how much Island Plaza went for.   “As for Queensbay Mall, it was sold to the Employees Provident Fund (EPF) for about RM400mil,” the source said.   Gurney Plaza was owned by Etika Cekap, while Queensbay Mall and Island Plaza were owned respectively by CP Land and the Belleview Group.   Gurney Plaza, which opened in 2001, has over 70,000 sq m of floor space, while Queensbay Mall, which began operations last year, has a built-up area of about 232,257 sq m.   Buyers usually use yield calculation to determine the price of shopping malls.   “This method looks at the yield that can be generated yearly from rentals,” the source said. “Based on rentals, upmarket shopping malls on the island can generate yields of about 8% a year.”   Current market rentals for ground-floor retail lots range from RM15 to RM25 per sq ft, depending on the size and location of the units.   Local and overseas investors, such as those from the United States, Australia and China, started taking an interest in commercial properties in Kuala Lumpur about two years ago.   “In the past two years, real estate investment trust companies have bought several shopping malls in the Klang Valley.   “They are now turning their attention to Penang, as the island has new, trendy and upmarket shopping malls and affordably priced commercial centres,” the source said.   He said that in Singapore, a prime commercial property could easily fetch RM5,000 per sq ft or more.   “A similar property in Kuala Lumpur or Penang is priced between RM600 and RM1,000 per sq ft,” the source said.     Source :The Star 23/06/2007 Close Window