Koll Launching Venture in Malaysia Despite Crisis

Call it crazy, or at least a case of bold timing, but Koll Real Estate Group of Newport Beach is launching its first development venture in Malaysia in the midst of Southeast Asia’s financial crisis.

Koll officials said Tuesday that they had formed a partnership with one of the country’s largest agricultural conglomerates, Kumpulan Guthrie Berhad, to develop a 142-acre business park dubbed Guthrie Aerospace Park, in Kuala Lumpur.

Koll has begun marketing land next to Subang International Airport to aerospace, aviation and high-tech companies. Although international passenger traffic is moving to another airport this spring, Subang will remain open for corporate users, cargo traffic and as a repair and maintenance depot, said Koll Vice President Paul Meyer.

Although embarking on the project now may sound odd given the current economic situation, Koll officials say there is very little risk involved.

No work will begin on infrastructure or buildings until Koll sells land or signs a long-term lease with a large corporate tenant. And Koll will be paid a monthly fee rather than retain an investment stake in the property, Meyer said.

But will Koll be able to attract any tenants given the wait-and-see attitude most firms are taking about real estate investment in the region? Meyer is upbeat, believing that some corporate investors will take the “long view” and embark on expansion plans now. “We think an agreement can be reached within the next six months,” he said.