Real estate investors should look at the positive side during the current economic uncertainty, as there is still some upside in this sector.MGPA (Bermuda-based real estate investment company) invest RM2 billion in real estate market.

Construction cost is now at a moderate rate and with careful selection of property investment, MGPA still can make benefit. MGPA will invest RM2bil (including acquisition and construction costs) in The Intermark.

The amount involves the complete refurbishment of 62-storey landmark grade A office building Vista Tower (formerly known as Empire Tower), a new international grade A office building Integra Tower, retail centre Intermark Mall (formerly known as City Square) and Malaysia’s first Doubletree by Hilton Hotel.

MGPA – through it’s Asia Fund 2 – acquired the Empire Tower, City Square, the Crown Princess Hotel and Plaza Ampang in 2007 for about RM760mil.
The reason MGPA  to refurbish and build the grade A office buildings was because such buildings were limited in the city.Besides that, the location of the development – at the junction of Jalan Tun Razak and Jalan Ampang – is very strategic, just 500 metres from the Petronas Twin Towers and also about a two-minute walk to the Ampang Park LRT..

MGPA company is comfortable with the investment in Malaysia and will be here for a long time. Chief executive officer of MGPA Asia Developments;Michael Wilkinson is looking for more investment opportunities in Malaysia and will announce that when the time comes.

Malaysia was fortunate to be still resilient in the current climate and, with a strong market, the country was still attractive to real estate investors.

The refurbishment of Vista Tower is expected to be completed by end of this year and Integra Tower by end-2012 while Intermark Mall and the Doubletree hotel by Hilton Hotel  are scheduled to have their soft openings by the first quarter of 2010.

MGPA is the company’s first investment in Malaysian real estate market, this investment might build confident for real estate investors. MGPA is confident that the office space in Vista Tower will be fully taken up once it is completed by end of this year.

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