KUALA LUMPUR: Permodalan Nasional Bhd’s (PNB) subsidiary, PNB Merdeka Ventures Sdn Bhd has unveiled the Merdeka 118 Show Gallery in Jalan Sultan Ismail.
PNB group chairman Tan Sri Dr Zeti Aziz said the Merdeka 118 is set to be a catalyst in revitalising the historic site of the former Merdeka Park next to Merdeka Stadium and Stadium Negara in Jalan Hang Jebat.
“This precinct not only embodies our culture and legacy of independence, but also our evolution and future, given the union of contemporary architecture and the historic in this area.
“The tower spire aptly personifies our vaulting aspirations towards our future, for Malaysia as a nation and for PNB as a company,” she said.
She said PNB has prioritised plans to fully activate the precinct all year round once completed, with potential collaborations and partnerships that will deeply involve and connect directly with the neighbouring community.
“It is our hope that it will draw visitors and reflect the personality and spirit of the Merdeka 118 precinct, bringing a positive impact to other parts of Kuala Lumpur,” she added.
The show gallery allows visitors to preview important features of the Merdeka 118’s development location and connectivity in relation to the other parts of Kuala Lumpur as well as technical aspects.
Meanwhile, she said the development of the Merdeka 118 was still within a RM5 billion budget including for the mall and the main tower (Phase 1 and Phase 2).
“Of the total budget, PNB has utilised about 40 per cent of RM5 billion allocation,” she said.
Comprising over 3.1 million sq ft of mixed-use development, Merdeka 118 and its components are set to be completed in three phases.
These include the landmark office development, the highest observation deck in Southeast Asia which will be connected to the retail mall, the Park Hyatt Hotel, three residential towers, and a four-acre public park.
The final component of the precinct is Merdeka Residences that consists of three premium residential towers housing up to 800 apartments, which is expected to be launched by end of 2020.
PNB executive vice president for property real estate, Rizal Rickman Ramli said the Merdeka 118 precinct is set to increase liveability, vibrancy and breathe new life to the surrounding community.
“Having commenced construction in 2016, the Merdeka 118 tower is currently 38 per cent completed, standing at 75 floors.
“Upon completion by 2021, the 118-storey tower at a height of 635m will be a new landmark, complementing the Kuala Lumpur skyline,” he said.
He said PNB expected to have a longer term horizon to break-even for the entire Merdeka 118 development.
“This is an investment by PNB and not involved our funds. We have longer term horizon.
“There are various components in this development. Each component will have different timing to monetise it,” he said.
He said the time horizon depends on each component, citing that PNB would evaluate each component’s timing regularly as the market progresses.
Dr. Zeti said PNB had initiated innovative ways to brave the current overhang in commercial property market.
“That is something that we take into consideration. We have several strategies to recognising this significant supply that is coming on stream,” she said.
Rizal said PNB believe there are still demand for a premium A product in commercial property segment, as the supply in the city currently running at more than 90 per cent occupancy rate.