KUALA LUMPUR (April 24): KLCCP Stapled Group, controlled by national oil and gas company Petroliam Nasional Bhd, said on Wednesday that it is still actively pursuing and exploring opportunities.

The group, comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust (REIT), is seeking matured assets “with good yield,” chief executive officer Datuk Md Shah Mahmood told reporters after the group’s annual general meeting.

“We have not determined the location, but we are actively pursuing and also exploring,” Md Shah said. “For the REIT, it's going to be very stringent, in terms of the requirement and the criteria of the asset that we want to invest.”

The group owns a diverse property portfolio largely located within the Kuala Lumpur city centre, including Petronas Twin Towers, Menara ExxonMobil, Menara 3 Petronas and Menara Dayabumi.

KLCCP Stapled Group’s planned foray abroad comes at a time when Malaysia’s economy faces potential slowdown as consumer spending moderates amid the increase in sales and service tax followed by the introduction of a High Value Goods Tax.

There is an “increasing urgency for us to expand and diversify our business to maintain our leadership and relevance in a rapidly changing landscape,” KLCCP said in its annual report. The group has received a mandate to expand its investment portfolio and explore new investments from 2024 onwards, it said.

KLCCP chairman Tan Sri Ahmad Nizam Salleh said at the same press conference that investing in global assets requires a “more demanding test” that considers the exposure to the risks when investing in foreign countries.

“All sorts of things [such as security risk and economic exposure] must come together — to generate better results. The board is very strict on this [global assets], and it will require the management to comply with all the standards,” Ahmad Nizam said.

Meanwhile, the surge in new mall inaugurations in the city is far from posing competition for Suria KLCC, as they complement one another, said Md Shah.

“If we look into the retail outlets in Malaysia — we see the same brands [in every mall] — so there is no point in competing, but instead we complement each other. I think that will be the spirit,” he said.

Suria KLCC recently became a wholly-owned subsidiary of KLCCP after the completion of the proposed transaction worth RM1.95 billion with Ocmador (Malaysia) City Retail Centre Sdn Bhd, Port Moresby Investments Ltd and Bold Peak Sdn Bhd.

Of late, Kuala Lumpur has seen a rise in new mall openings, including Pavilion Damansara Heights and The Exchange TRX.

There is also the Warisan Merdeka Mall@118, which is owned by Permodalan Nasional Bhd (PNB), near the vicinity, slated to open by the third quarter of 2025.

Although there will always be concerns when new malls open in its vicinity, KLCCP believes that Suria KLCC has an established reputation as a premier shopping destination and unique offerings that set it apart.

“I think we don't see [the new mall openings] as big of an impact [on Suria KLCC]. There was a risk initially, but now it has stabilised. We still do very well in terms of performance and occupancy,” said Md Shah.

It was noted that Suria KLCC's occupancy rate jumped to 98% in December 2023, while footfall rose by 30% compared to 2022.

The mall also achieved its highest moving annual turnover of tenant sales, registering a 12% growth in 2023, with 35 new tenants last year.

“The increase in tenant sales was particularly driven by fashion, food and beverages, and general retail,” Md Shah added.

KLCCP settled up four sen or 0.53% higher at RM7.54 on Wednesday, valuing the group at RM13.61 billion.