The KLCCP Stapled Group, which consists of KLCC Real Estate Investment Trust and KLCC Property Holdings Bhd, has implemented a three-pronged growth strategy to safeguard the group’s long-term business viability.

The strategy by KLCCP is expected to take around five years toward achieving its short-term target.

KLCCP intends to strengthen its integrated business model, step out and establish capabilities for future growth, while also expanding on the core real estate segment through an increase in property investments, taking into account the macroeconomic, and geopolitical uncertainties and challenging property market.

The three-pronged strategy and targets, according to Datuk Md Shah Mahmood, chief executive officer of KLCCP and KLCC Real Estate Investment Trust, will encourage more development and position it well through 2023.

He said that to achieve a great performance, the group will build on a solid basis and keep enhancing its operational capabilities and asset portfolio.

“We have also strengthened our approach to greenhouse gas emissions and established our net zero carbon emission pathway towards our aspiration of low carbon emission by 2050,” he said in a statement yesterday.

All of KLCCP’s business segments should continue to experience a comeback, he said.

Md Shah said that despite several international borders being largely closed in 2022, the performance of its mall, Suria KLCC, led to the highest tenant sales, beating pre-pandemic levels by 9.5 per cent, with a heavy local presence.

According to him, the ratio of locals to visitors who came to Suria KLCC in 2022 was 70:30, and occasionally it was 80:20.

Regarding the office segment, Md. Shah said that the group managed to retain its rental rate for offices as there was an incremental increase in its asset value in 2022, which was RM15.7 billion.

Additionally, Petroliam Nasional Bhd has extended its triple net lease, which is good until 2042, with the Twin Towers and Menara 3 PETRONAS.

As for the hotel segment, he said after taking into account client uniqueness and services, the group is certain that Mandarin Oriental will continue its competitiveness in the hotel business.

Source: KLCCP announces its growth plan to ensure its long-term business viability (nst.com.my)