KLCCP Stapled Group to be selective in new asset acquisitions amid market uncertainty

• At present, the company is focusing on asset rejuvenation — including upgrading and refurbishing its properties — in an effort to attract more tenants.

KUALA LUMPUR (April 29): KLCCP Stapled Group (KL:KLCC), which is controlled by national oil and gas company Petroliam Nasional Bhd (Petronas), said on Tuesday that it will be more selective in acquiring new assets amid weak global market sentiment stemming from the US tariff policy.

Currently, there are no acquisitions on the table, said its CEO Datuk Mohd Salem Kailany, who was appointed to the board in November last year.

“We’ve explained this to our shareholders: we will be very selective. We will continue to be on the lookout and, when opportunities arise, we will explore them. But at the moment, there are none,” he told reporters after the group’s annual general meeting.

Mohd Salem also said the group is closely monitoring trade-related risks, given concerns about weakening consumer footfall and spending patterns. However, he added that it is still too early to assess the full impact, especially with the 90-day pause on the 24% US reciprocal tariff imposed on Malaysia.

“We have been monitoring spending patterns over the past 12 months and are trying to anticipate what comes next. So far, we’ve observed a slight improvement compared to previous periods and we hope to maintain that. However, the full impact of the US tariffs remains uncertain,” he said.

At present, the company is focusing on asset rejuvenation — including upgrading and refurbishing its properties — in an effort to attract more tenants.

“We have strong, high-quality assets. We rejuvenate these assets, refurbish them into better buildings and ensure they are ready for tenants. This allows us to position our products above market standards and increase rents in line with the value we deliver,” said Mohd Salem.

KLCCP Stapled Group comprises KLCC Property Holdings Bhd (KLCCP) and KLCC Real Estate Investment Trust (KLCC REIT), which are involved in property investment, development and management services.

The group owns several iconic properties, including the Petronas Twin Towers, Menara ExxonMobil and Menara 3 PETRONAS under KLCC REIT, as well as Suria KLCC, Mandarin Oriental Kuala Lumpur and a vacant plot (Lot D1) under KLCCP. KLCCP also holds a 33% stake in Menara Maxis.

For the financial year ended Dec 31, 2024 (FY2024), all of its business segments — property investment (office and retail), hotel operations and management services — recorded year-on-year revenue growth. This resulted in a record-high revenue of RM1.7 billion, up 5.7% from RM1.62 billion in FY2023.

KLCC Holdings’ Bandar Malaysia plans still in the works

In a separate development, KLCCP Stapled Group chairman Datuk Annies Md Ariff said its parent company, KLCC Holdings Sdn Bhd (KLCCH), is still in the midst of finalising development plans for the Bandar Malaysia project.

“The Bandar Malaysia project is not under us. It’s under KLCCH. I believe they’re still in the process of putting together the development plans,” he said in response to reporters’ questions when asked for an update of the project. 

In February, Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, said in a written parliamentary reply that the Bandar Malaysia project is expected to span 50 years due to the size of the 486-acre site and the need for a controlled development approach to ensure commercial viability.

Last December, KLCCH — which holds a 64.67% stake in KLCCP Stapled Group — was reported to have acquired the 486-acre Bandar Malaysia land for an undisclosed sum. The sale and purchase agreement for the nearly 200ha site, formerly the Royal Malaysian Air Force base along Jalan Sungai Besi, was signed with Bandar Malaysia Sdn Bhd and Bandar Malaysia Land Sdn Bhd on Oct 4, 2024.

The Edge Malaysia Weekly reported in its Dec 23–29, 2024 issue that the land was being taken over by one of Petronas’ companies in a deal estimated to be worth as much as RM12 billion.

First announced in 2011, Bandar Malaysia was envisioned as a mixed-use, transit-oriented development integrating multiple transportation networks, including the Kuala Lumpur-Singapore High-Speed Rail. The project has faced several delays and was postponed indefinitely in 2021 after the agreement with the IWH-CREC consortium — a 50:50 joint venture between Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corp — collapsed.

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