Macquarie Global Property Advisors (MGPA), a private equity real estate fund advisory company, has signed an agreement on behalf of MGP Fund II to acquire a mixed use complex in the Jalan Ampang district of Kuala Lumpur, Malaysia for RM760 million (US$206.5 million).

The complex comprises the 61 storey Empire Tower office building, the 28 storey Crown Princess Hotel, the six level Ampang Plaza retail mall and the 11 storey City Square shopping centre.  It has a combined gross floor area of 2.2 million square feet and is located 500 meters from the Petronas Towers, the world’s second tallest building.

MGPA Managing Director Simon Treacy said, “We are extremely pleased to announce this agreement which, when concluded, will be MGPA’s first investment in Malaysia.”

“We believe the current outlook for commercial property in Malaysia is favourable, with increasing demand for offices and limited new supply.  Similarly, the retail and hotel sectors are improving in line with the expanding economy and growing tourism” said Mr Treacy.

MGPA will continue to look for investment opportunities in Southeast Asia, where economic growth has been particularly strong over the past two years. It anticipates making further acquisition announcements in the near future.

“The real estate market in Southeast Asia has been overlooked by many investors since the 1997-98 financial crisis. We are upbeat on the property market in this region, particularly in Singapore, Malaysia and Thailand,” Mr Treacy said.

MGP Fund II closed in September 2005 with commitments of US$1.3 billion, giving it a buying power of US$5 billion. The Fund has invested more than US$1.25 billion in Asia, with acquisitions in Hong Kong, Japan and South Korea.

Final completion of the acquisition is subject to various conditions including regulatory approvals in Malaysia.