PNB 118 on track to be completed in 2020

By year-end, PNB expects the project to be 40% finished

By ALIFAH ZAINUDDIN / Pic By ISMAIL CHE RUS

Permodalan Nasional Bhd (PNB) is committed to completing the construction of PNB 118, with the overall project expected to be delivered in three years.

PNB group chairman Tan Sri Dr Zeti Akhtar Aziz (picture) said construction of the 118-storey skyscraper has reached the 42nd floor, with PNB now progressing to engage with potential tenants for the building.

“I believe about 50% (of the engagement with potential tenants) is closed to being finalised, and we are engaging those who are also not in Malaysia.

“These are new tenants for 118, rather than taking away existing tenants in the country,” Zeti said after announcing PNB’s 2018 income distribution for its flagship fund, Amanah Saham Bumiputera and Amanah Saham Nasional in Kuala Lumpur last Friday.

Earlier this year, the iconic tower — poised to be the world’s third tallest building — secured luxury hotel operator Hyatt Hotels Corp whose Park Hyatt brand will occupy the top 17 floors of the tower.

The Park Hyatt hotel will offer 232 guest rooms, including 28 suites and 30 serviced apartments. It will also have a 170-seat all-day restaurant and a 250-seat sky bar and restaurant, a spa, a fitness centre and a swimming pool.

The hotel expects to receive its first guests by 2021.

Upon completion of the tower, PNB 118 will have 1.65 million sq ft of rentable office space, a retail mall and other entertainment amenities.

The state-linked fund is expected to take up half of the 83-floor office space, with its portfolio companies anticipated to take tenancy as well. The remaining 41 floors will be let out to others.

In total, the RM5 billion megatower will comprise 17 floors of hotel space, 14 floors of transfers and amenities, four floors of observation deck and 83 floors of office space.

So far, substructure works for the tower have been completed. By year-end, PNB expects the project to be 40% finished.

PNB 118 is one of several new landmark sites in Kuala Lumpur, with another notable project — Exchange 106 — at the Tun Razak Exchange (TRX). This skyscraper is expected to surpass the Petronas Twin Towers as Malaysia’s tallest building upon its completion this year.

TRX is expected to add 16 million sq ft of office space to what is already a bearish segment in the capital’s property market. The oversupply of office space in the city centre is anticipated to continue in 2019, with new stocks in the offing.