Malaysia’s largest government-linked fund management firm, Permodalan Nasional Bhd (PNB), has signed Hyatt Hotels & Resorts as the hotel operator for its tower development, expected to be the third tallest in the world when completed.
The luxury hotel operator’s Park Hyatt brand will occupy the top 17 floors of the tower, called PNB 118, PNB said on Tuesday. Aimed for completion in 2020, the 118-storey building will be the tallest in Southeast Asia.
PNB 118 will have 1.65 million square feet of rentable office space, a retail mall and other entertainment amenities. The fund itself will take up around half of the office space, and is looking to have its portfolio companies take tenancy as well.
“From our perspective, this is an investment into real estate, in a historic location,” group chairman Abdul Wahid Omar said at a press briefing.
In November, PNB said it was looking to raise 2 billion ringgit ($512.03 million) via a green sukuk programme to finance the tower project. The fund’s real estate portfolio also include British and Australian assets.
Malaysia’s capital has been experiencing an oversupply of office space in recent years. However, new office buildings continue to enter the market. Notably, the construction of a 106-storey building, Exchange 106, is underway in the Tun Razak Exchange and targeted for completion this year.