KUALA LUMPUR (May 24): Boustead Properties Bhd, the property arm of diversified Boustead Holdings Bhd, remains optimistic about its commercial performance and retail portfolio this year as the occupancy rate of its commercial assets is currently above 90% compared with the average occupancy rate of similar grade buildings within similar locations.

In what it sees as a recovery year despite challenges posed by the Covid-19 pandemic, Boustead Properties is expecting occupancy of its commercial space to continue in this trend.

"Affordable offices that provide a flexible, technology-compatible workspace are still considered crucial as companies require employees to engage and collaborate while maintaining a safe environment. Investments in commercial properties will also be reliant on property and financial incentives," said Boustead Properties' senior general manager of property management and investment Jazmi Kamarudin said in a statement today.

"As certain businesses have expanded during the pandemic, some of these, including those in e-commerce, selected grocery brands, and logistics will need larger or additional spaces to operate from," he added.

Its latest addition, Nucleus Tower, an MSC Cybercentre status and GBI Gold Grade A office tower which occupies a prominent corner site within Mutiara Damansara, is set to increase its occupancy to 95% in the third quarter of this year.

Under the company's mall operations, Boustead Properties said The Curve shopping centre in Mutiara Damansara continues to maintain a commendable occupancy rate of 90% despite a generally soft retail market.

"Our mall has been relatively protected in the current retail climate. With more new tenants expected in the second half of 2021, we expect the mall to remain resilient and reach 95% occupancy by year end," said Jazmi.

Between January and June, The Curve welcomed 13 new retail tenants operating in different sectors ranging from food and beverage, fashion, services and furniture.

At 2.40pm, Boustead Holdings' shares were up one sen or 1.75% at 58 sen, bringing a market capitalisation of RM1.17 billion.