By PETER ESILA
THE real estate segment of the economy remains attractive to long-term investors, says Teachers Savings and Loans Society chief executive Michael Koisen.
Koisen, during the groundbreaking ceremony for the K82 million nine-story Tisa Rua project in Port Moresby on Tuesday said that real estate had experienced a steady growth since the 1980s.
“We can comfortably put the value of the Tisa Rua upon completion at K150,910,040 on the basis of full occupancy, consistent with a building lifecycle of 20 years and at an attractive commercial property investment return,” Koisen said. “Most of these leasing arrangements will be up for review in the next five to 10 years.
“The likelihood of attaining tenancies from key international corporates who have operations in PNG may not be likely in the immediate term.
“Because the complex is to be constructed in Waigani, we will be commencing discussions with Government departments, agencies and support services.”
Koisen said Tisa Rua had an advantage because of the commercial office space and flexibility on leasable areas, recreational spaces/garden terraces, high-end residential apartments, commercial retail spaces.
He said Tisa Rua would bring to the real estate market in Port Moresby a new dimension to the depth of development and design of commercial complexes.
It will provide 4163.32sqm of office space, to add on to the vacancies that stand at 12,000sqm in the Waigani Government Business District and surrounding areas.
“Some of this space will be for retail purposes and residential apartments which are features limited to a few existing complexes in Port Moresby,” Koisen said.