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SHAH ALAM: Pelaburan Hartanah Bhd (PHB) is looking to expand the size of its Amanah Hartanah Bumiputera (AHB) unit trust scheme to RM1.5bil by year-end from RM1bil now.

According to PHB managing director and chief executive officer Datuk Kamalul Arifin Othman, since AHB was launched last November, more than 95% of the RM1bil fund has been subscribed.

“We need to expand the fund size to promote bumiputra ownership of prime commercial real estate and enhance opportunities for their ownership in high value and strategically located prime commercial properties in major cities,” Kamalul told StarBiz yesterday.

AHB is a fixed-price syariah-compliant real estate backed unit trust. It was designed with a specific objective to provide opportunity for bumiputra investors to participate in the beneficial ownership of real estate assets that would give the investors regular and consistent income streams.

Kamalul said PHB would be taking an “enterprise approach” in its expansion plans as it increased its footprint in the prime commercial real estate sector.

“Moving forward, we are looking to buy more completed and income-yielding assets, expand our landbank and venture into more property development projects,” he added.

To comply with its fund size expansion plan, he said PHB would need to source for new assets to be injected into AHB.

This year, another three to four assets are expected to be added.

Kamalul said the asset procurement through acquisition of completed assets and property development would ensure continuous asset accumulation for PHB.

“The completed assets facilitate immediate injection into AHB, while property development ensures future supply of good assets. This will ensure the fund will be able to meet its commitment to provide investors good and consistent income streams,” he said.

Currently, AHB's property portfolio comprises five assets three office towers, a hypermarket and a warehouse worth a total of over RM1bil.

These properties CP Tower, Wisma Consplant, and 26 Boulevard in Putrajaya; Tesco Setia Alam and a logistic warehouse in Shah Alam provide an average gross annual rental income of RM100mil. All the assets are located in the Klang Valley.

Kamalul said the plan was for PHB to have a market presence in every state throughout the country within the next three years.

“We are open to all good potential markets and income-yielding commercial property that have good tenants occupying the space,” he added.

The company is involved in a joint venture with Malaysian Resources Corp Bhd to undertake the Penang Sentral integrated transportation hub and a retail complex for the Northern Corridor Economic Region. The RM230mil project is expected to be ready in 2014.

PHB also owns three parcels of land including six acres in KL Sentral which is currently being developed into an integrated commercial project comprising a seven-storey green lifestyle retail mall named Nu Sentral and a 27-storey office tower.

The gross development value is estimated at RM1.4bil and it is scheduled to come onstream next year.

PHB also owns a 20-acre site in Bangsar and five acres in Jalan Ampang, Kuala Lumpur. Both parcels are designated for integrated high-end mixed commercial and residential developments that are expected to take off by next year.

“Through our profit-driven initiatives, we aim to achieve competitive returns for our investors,” Kamalul said.

The fund will pay out income distribution twice a year, in April and October. The first will be made in April.

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