Wednesday 13 July 2016

Mammoth to sell Empire Shopping Gallery

Property developer cum owner and operator of hotels and malls Mammoth Empire Holdings Sdn Bhd (MEH) is ready to divest Empire Shopping Gallery in Subang Jaya, Selangor, should it receive a desirable and concrete offer. Empire Shopping Gallery has a gross built-up of RM600,000sf and a net lettable area of 350,000sf spread over 5 levels. It has 98% occupancy. The mall valued at RM510 million 2 years ago, while the latest valuation is RM583 million. The tenancy agreements are typically renewed every three years and the rental yield is between 6.5% and 7%.


(The Edge Property, 07/06/2016)

British American Tobacco sells PJ factories and land for RM218 million

British American Tobacco (M) Bhd (BAT), wholly-owned subsidiary Tobacco Importers and Manufactures Sdn Bhd (TIM) entered into sale and purchase agreement (SPA) with LGB Properties (M) Sdn Bhd for the disposal of two parcels of leasehold land measuring 5.3-ha (13.1 acres) in Virginia Park, Petaling Jaya, Selangor, for RM218 million cash. The land was sold together with its existing buildings including offices, warehouse, cafeteria and factory. The land comes with 99-year lease which will expire in 2060 and 2062, and part of the land was leased to Tenaga Nasional Berhad (TNB) until 2032. Upon signing the SPA, the building will be rented out to BAT’s subsidiary for RM1.09 million per month. Currently, the property’s market value stands between RM262.5 million, where RM216.8 million for the land and RM45.7 million for the buildings.


(Property Guru, 09/06/2016)

Magna Prima to buy Shah Alam land for condo project

Magna Prima Bhd’s has entered into a conditional sale and purchase agreement with Regalia Raintree Sdn Bhd, to buy a piece of leasehold land measuring 5.25 acres in Bandar Shah Alam, Selangor for RM43 million. The company plans to develop The View Residence, comprising 3 blocks of 15-storey condominiums, with a total of 315 units, 5 units of shop offices and 953 parking bays. Total estimated gross development value is RM220.81 million, with the gross development cost of RM180.69 million will give them gross profit of RM40.12 million.


(The Edge Property, 10/06/2016)

LTKM Bhd buys CN Asia land for RM58.4 million

LTKM Bhd plans to buy four parcels of adjoining land measuring 6.38 acres, worth RM58.4 million for future property development. A 2.389-acre leasehold land houses CN Asia’s existing factory, the others 3 parcels are all vacant.

(iProperty, 14/06/2016)

Hap Seng buys Kuala Selangor plots for RM228.75 millon

Hap Seng Consolidated Bhd is buying 36 parcels of freehold agricultural land with an aggregate land size of 1,449.52 acres in Kuala Selangor, for RM228.75 million to develop a mixed development with an estimated gross development value (GDV) of RM9.3 billion. Hap Seng unit Euro-Asia Brand Holding Company Sdn Bhd is buying 20 plots of land which collectively measure 734.82 acres from Shalimar for RM121.54 million or RM165 per acre. It also acquired another 16 plots, from Indo Malay measuring 714.7 acres for RM107.21 million or RM150 per acre. All the 36 plots it is acquiring are located in the Kuala Selangor district and can be easily accessed via the Latar Expressway. Hap Seng intends to develop the GDV of RM5 billion land with “sought-after modern guarded-and-gated lifestyle residential properties and commercial components” on Shalimar plots. The land parcels also close to the Royal Kampung Kuantan Golf Club and University of Selangor in Batang Berjuntai. The deals are expected to be completed in 3Q16.


(The Edge Property, 16/06/2016)

MSC acquires land and properties in Westport for RM50 million

Malaysia Smelting Corp Bhd (MSC) subsidiary, M Smelt (C) Sdn Bhd is buying three parcels of land at Pulau Indah Industrial Park, Westport – along with plant and machinery on the properties for RM50 million from Metal Reclamation (Industries) Sdn Bhd. The company is paying RM32.5 million for the three plots of leasehold land, with aggregate land size of 12.05 acres and the buildings built thereon, and RM17.5 million for the plant and machinery.


(The Edge Property, 16/06/2016)

AmanahRaya REIT buys property in Cyberjaya for RM40 million

AmanahRaya Real Estate Investment Trust (REIT) is acquiring a land together with a 4-storey office building in Cyberjaya for RM40 million from Cyberview Sdn Bhd and Setia Haruman Sdn Bhd. The freehold land is 2.05 acres in size while the building has a gross floor area of approximately 93,804sf. The property has tenancy agreement for a tenure of five years with a potential for extension for another three years. It also provides an initial net yield of 7.19% per annum.


(The Edge Property, 16/06/2016)

PR1MA to buy affordable homes from Gabungan AQRS for RM314m

PR1MA Corp Malaysia plans to buy 1,140 units of affordable homes, along with the 19.03-acre land on which they will be built, from AQRS Bhd for RM314 million. The project sits on a leasehold land in Putra Perdana Sepang, Selangor. It comprises 4 blocks of 19-storey apartments by a lake side with three different built-up areas of 850sf, 950sf and 1,050sf. The project is estimated to be completed in 3.5 years.


(The Edge Property, 23/06/2016)

Ideal Sun City to buy commercial buildings for RM50 million

Penang-based Ideal Sun City Holdings plans to invest RM50 million to acquire commercial buildings in Penang, Kuala Lumpur and Selangor. Currently, the group has 58 units of stratified properties in Penang and 12 light industrial units in the Klang Valley. It is also pursuing a mixed development project in Selangor.

(The Edge Property, 28/06/2016)

Mapletree Logistics Trust to acquire Shah Alam warehouse for RM160 million

Mapletree Logistics Trust (MLT) is acquiring a warehouse facility in Malaysia (Mapletree Shah Alam Logistics Parks) at a price of RM160 million from Mapletree Investments. The 3 blocks of single-storey multi-tenanted warehouse with mezzanine offices, has a total gross floor area about 60,905sm and is designed with modern building specifications. It offers net property income yield of 7.5%.

(The Edge Property, 29/06/2016)

Wednesday 11 May 2016

Prasarana eyes potential REIT spin-off

Prasarana Malaysia Bhd is looking at spinning off some of its assets into real estate investment trust (REIT) and pares down its debt. Prasarana currently owns and operates two light rail transit (LRT) lines – Kelana Jaya and Ampang, the KL Monorail line, as well as the Rapid KL bus services including Bus Rapid Transit-Sunway Line, Rapid Penang and Rapid Kuantan.

(The edge property, 01/04/2016)

Pavillion REIT still has appetite for more buys

Last year Pavilion REIT announced that it was buying the Da:men Mall in Subang Jaya for RM486.84 million and the Intermark Mall in Kuala Lumpur for RM160 million. On completion of the proposed acquisition, it will enlarge Pavilion REIT’s portfolio of investment properties from RM4.6 billion to RM4.8 billion. With the expecting gross income growth from 8% to 10%.

(The edge property, 06/04/2016)

Pelaburan Hartanah Bhd aims to add prime commercial and high value properties

Pelaburan Hartanah Berhad (PHB), manager of Amanah Hartanah Bumiputera (AHB), plans to acquire more prime commercial properties and develop high-value commercial projects nationwide. There are additional 1.5 billion being launched. AHB units were from revenue and development of five new assets namely Menara 1 Sentrum and NU Sentral Shopping Centre at Kuala Lumpur Sentral, The Shore Shopping Gallery Melaka, One Precint Penang and Block B Gleneagles Kuala Lumpur.


(iProperty, 08/04/2016)

MQREIT does not expect significant impact from office space glut

MRCB-Quill Real Estate Investment Trust (MQREIT) does not expect to be significantly affected by the current office space oversupply as only 7% of its NLA will be up for renewal in July, while the remaining portion have locked in periods as per rental agreements. As at December last year, the occupancy rates were 97.5% of the total NLA. 80% is office space and the remaining 20% is retail space. MQREIT’s total assets amount to RM1.57 billion, which will rise to RM2.2 billion upon inclusion of Menara Shell, which is still in process of being acquired.

(The edge property, 13/04/2016)

KLCCP Stapled Group rental income resilient

KLCC Property Holdings Bhd (KLCCP) Stapled Group has not been impacted by any cut in office space requirements by its main tenant, PETRONAS. KLCCP consists of KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust (KLCC Reit). The group derives its revenue mainly from office segment that contributes 44% of its revenue. The group will see an addition of 45,000 sf of office space in Menara Dayabumi this year that is expected to boost its revenue by 1-2%. The new office will be completed by mid-year and the group has secured tenants.

(The sun, 14/04/2016)

CapitaLand acquired Tropicana properties for RM540 million

CapitaLand Malaysia Mall REIT Management Sdn Bhd (CMMT) purchased Tropicana properties for RM540 million, which include Tropicana City Mall, Tropicana City Office Tower as well as Gurney Plaza in Penang and East Cost Mall in Kuantan, Pahang.

(The Star, 15/04/2016)

Cautious view maintained on REIT players’ outlook

A cautious view is reiterated on the overall operating environment amidst subdued consumer sentiment. As the overall sentiment remains weak the management have taken a more cautious stance in guiding lower rental reversion on the upcoming renewals. On the office properties, the market is rather soft with potential tenants taking longer time to take up spaces and rental reversion for office space is likely to be slow. The situation is further dampened by the huge NLA supply in the pipeline.

(The borneo post, 26/04/2016)

Hektar REIT eyeing malls in second-tier cities

Hektar Real Estate Investment Trust (REIT) is identifying potential acquisition targets across the country to widen its portfolio under management. Its portfolio currently comprises shopping malls: Subang Parade in Subang Jaya, Mahkota Parade in Melaka, Wetex Parade in Muar, Johor, Central Square and Landmark Central in Kedah. They had a total net lettable area (NLA) of 1.8 millionsf, with average occupancy rate of 96.6% as at Dec 31, 2015. Currently, the trust manager is keen to purchase a neighbourhood mall in one of the country’s second-tier cities and has allocated RM20 million to raise the overall NLA of Landmark Central in Kulim, Kedah by 20,000sf to 300,000sf.

(The edge property, 26/04/2016)

Sunsuria Bhd set to launch Sunsuria City Apartments and SOHO units in Q32016

Sunsuria Berhad will be launching its first residential property, the Sunsuria City Apartments (Plot 3A) as well as the SOHO units of its mixed development project (Plot 1B) at Sunsuria City in the third quarter of 2016. The 525-acre Sunsuria City located at Putrajaya South, Salak Tinggi has an estimated gross development value (GDV) of RM10 billion and comprises residential, mixed commercial, commercial and transit-oriented developments. There will be a proposed school, recreational park, university campus and an outlet mall.

(iProperty, 01/04/2016)

Cyberjaya high-rise project on track

Developer UEM Sunrise Bhd recently completed the topping out for Verdi eco-dominiums, the high-rise component of 40-ha boutique development in Symphony Hills, Cyberjaya, this signified the structural completion of the development. Located on 3.7-ha freehold land, it features two residential towers of 44 and 45-storeys housing a total of 800 units with built-up area ranging from 700sf to 1,453sf. The price range between RM528,800 and RM1,187,800. Verdi is set within a gated-and-guarded smart community conceived with convenience, comfort and security in mind offering smart-home features and community connectivity through high-speed broadband.

(Star Property, 01/04/2016)

8Kia Peng to be launch soon

8Kia Peng, in KL City Centre is a 50-storey freehold and Construction Quality Assessment System standard project, offers 80% of the residents having direct Petronas Twin Tower view with the indicative pricing of RM2,300psf. The development is targeted to complete by 2019. The developer is expecting 70% of the buyers to be foreigners with deep pockets while the rest will be local professionals and upper-middle class buyers.

(Star Property, 01/04/2016)

MRCB to build RM56.8 million facility for Giant in Kajang

MRCB Builders Sdn Bhd signed RM56.8 million contracts to build a cold storage processing and distribution hub in Kajang for national retailing chain Giant. The 140,000 sq ft cold storage processing and distribution centre will be built on a 5-acre site in Kajang, Selangor and will feature the super flat floor technology pioneered in Australia. It is scheduled for completion in August 2017.

(The edge property, 05/04/2016)

Titijaya partners Ascott for RM4.1 billion serviced residence developments

Titijaya Land Bhd has entered into an agreement with The Ascott Ltd for two of its upcoming property developments located in Penang and Shah Alam, Selangor which have GDV of RM4.1 billion. Titijaya will remain as the rightful owner of the land, property and facilities. 250 units of serviced residence in Glenmarie will be located at the intersection of the major highways such as Elite Highway, Guthrie Corridor and NKVE. It is expected to be launched by 2017.

(The edge property, 06/04/2016)

PR1MA partners with TNB to build homes in Kajang

Perbadanan PR1MA Malaysia has joined forces with Tenaga Nasional Berhad (TNB) to build two apartment blocks in 3.33-ha land plot in Kajang. One of the blocks will sell by PR1MA while the other block would be given to TNB to house its employees.

(Property Guru, 07/04/2016)

Government launches MyHome project in Bukit Jalil

The Private Affordable Ownership Housing Scheme (MyHome) project in Bukit Jalil consists of 508 apartments measuring 850sf each is expected to be ready by 2018 and will be sold to 8,500 applicants from federal territory residents.

(Property Guru,11/04/2016)

Johawaki Development to launch final phase of Avanti Residences

Johawaki Development Sdn Bhd is set to launch the third and final phase of its Avanti Residences in Saujana Permai U17, Shah Alam. The final phase (with 38 units of semi-detached house) will have built-ups from 3,090sf onwards.

(The edge property, 14/04/2016)

WCT Holdings to launch first phase of OUG luxury condos

WCT Holdings Bhd is set to launch the first phase of luxury condominium development The Waltz Residences at Paradigm Garden City, Overseas Union Garden (OUG), Kuala Lumpur in 2Q2016. The Waltz Residences comprises two tower blocks with a total of 419 units. Paradigm Garden City sits on 72-acre freehold land comprising luxury condos, a retail mall, corporate office tower, retail offices and a hotel with total GDV of RM8 billion to RM10 billion.

(The edge property, 15/04/2016)

Sime Darby Property to launch Cantara Residences in Ara Damansara

Sime Darby Property will launch its RM586.84 million transport-oriented development called Cantara Residences in Ara Damansara this month. The project consists of 4 blocks of 23-storey tower with total of 888 units serviced apartments that have built-up of 650sf – 1,500sf and 13 retail units.

(The edge property, 16/04/2016)

Eco World set to launch Eco Somerset in Eco Sanctuary

Eco Somerset in Eco Sanctuary comprises 88 units of 2-storey and 3-storey lifestyle shopoffices with built-up sizes between 3,000sf and 6,000sf. The selling prices start from RM1.8 million or average of RM600psf, currently 80% sold. The second phase of Eco Somerset which consists of 68 units of shopoffices expects to launch by year-end.

(The edge property, 18/04/2016)

Crest Builder to launch RM1.1 billion Latitud8 development

Latitud8, a 2.72-acre mixed development project jointly developed by Intan Sekitar Sdn Bhd will be launched in fourth quarter this year. It consists of 420 residential units.

(The edge markets, 19/04/2016)

Prasarana plans 7 property projects with GDV of RM4 billion

Prasarana Malaysia Bhd plans to develop seven property projects in Kuala Lumpur and Selangor with a GDV of RM4 billion in the next four years. Six of the seven projects will be built based on Transit-Oriented Development (TOD) concept, which will integrate with the LRT and monorail systems to encourage transit ridership.

(The sun, 20/04/2016)

Crest Builder to jointly develop Jalan Ampang land with MRB

Crest Builder Holdings Bhd’s 51% owned unit of Landasan Bayu Sdn Bhd has entered into a joint development agreement with Malaysian Rubber Board (MRB) for the mixed commercial development which comprise of retail, premium residences and offices at Jalan Ampang. The total gross development value (GDV) is RM1.33 billion and MRB will be entitled for 22.5% share, with a guaranteed amount of RM299.85 million.

(The edge property, 21/04/2016)

PPC-Glomac is rolling out latest Phase terrace house in Aman Puri

PPC-Glomac Sdn Bhd is launching the latest phase in Aman Puri, Sungai Buloh, which comprise 28 units of 24x75 terrace houses with the starting price from RM730,000.

(Star Property, 22/04/2016)

The Parque Residences first phase 30% sold

The first phase of Parque Residences in 27-acre development of Eco Santuary has seen 30% of its condominium units sold since the project open for sale. The sales were moving slowly but steadily and the company plans to officially launch phases one and two, either at the end of this year or early next year. The Parque Residences consists of 6 blocks of 20 to 25-storey residential which house 1,000 units. The first phase of 3 blocks comprises 597 units with built-up sizes ranging from 516sf to 1,388sf, priced at averages RM700psf.

(The Edge Property, 22/04/2016)

Convenience at Eko Titiwangsa

Eko Titiwangsa, located within the Titiwangsa neighbourhood in Kuala Lumpur is a freehold serviced apartment project which is also a major component of the KL River City integrated mixed development. It is convenience of public transportation with the Sentul KTM Station and Titiwangsa stations for the Ampang LRT, KL Monorail, and upcoming Sungai Buloh-Serdang-Putrajaya MRT lines are within walking distance.

(Star Property, 26/04/2016)

SP Setia to launch Setia Eco Templer township

SP Setia Bhd Group will launch its upcoming 7.60 ha mixed commercial and residential township Setia Eco Templer which is located at the former Perangsang Templer Golf Club (Templer Park) site next month. The entire project has gross development value of RM2 billion and will take 7-years to be fully developed. The first phase will include link villas, semi-detached homes, bungalows, affordable apartments and a palatial clubhouse.

(PropertyGuru, 26/04/2016)

MCT to launch phase 3 of Cybersouth in Cyberjaya

MCT Berhad will be launching the third phase of Cybersouth which consists of townhouses with the built-up areas from 1,100sf and the indicative prices from RM400,000. Besides that, Cybersouth will be launching Rumah Selangorku homes this year comprising three layouts from 700sf to 950sf, priced from RM100,000.

(The edge property, 26/04/2016)

SP Setia to launch 900 affordable housing units

SP Setia’s Eco Templer development will be building approximately 900 affordable housing units this year priced from RM42,000 to RM250,000. Setia Eco Templer development has a gross development value (GDV) of RM2 billion, featuring English, Balinese of Peranakan-themed architectural designs and will take approximately seven years to complete. The project includes linked villas, semi-detached homes, bungalows and affordable apartments supported by a palatial clubhouse, which features an Olympic-sized swimming pool, gymnasium, ballroom, function room, F&B outlets and more.

(Star Property, 27/04/2016)

KLK unveils Rumah Selangorku project in Sungai Buloh

KLK Land has unveiled its Rumah Selangorku located at Bandar Seri Coalfields, Sungai Buloh. The Hibiscus 2 consists of 224 units of two-storey 18x60 feet terrace with a built-up of 1,000sf. It is with individual freehold land titles.

(Star Property, 28/04/2016)

Country Garden launching phase two of Diamond City

Country Gardens Properties (M) Sdn Bhd will be launching the first parcel of phase two of Diamond City township development in Semenyih Selangor. It comprises 60 units of 2-storey terraced houses with built-ups ranging from 1,862sf to 2,097sf. The price starts from RM618,688. The house comes with four bedrooms and three bathrooms and set for completion in 2019.

(The edge property, 29/04/2016)

Redevelopment work on Plaza Rakyat expected to start in June 2017

The Plaza Rakyat project was abandoned in 1997 during the Asia-Pacific financial crisis and after the developer Plaza Rakyat Sdn Bhd ran into financial problems. The redevelopment by Profit Consortium Sdn Bhd will commence in June next year. The depositors or beneficiaries can make the claims by producing the sale and purchase agreement of the business lots.

(The edge property, 29/04/2016)

PNB to build a 118-storey skyscraper


Merdeka PNB118, the 452m tall tower is expected to become not only the highest building in the country but in the entire ASEAN region when it is completed by 2020. The upcoming tower with the GDV of RM5 billion will contain around 1.7 million square feet of office space upon completion, adding to the 4.8 million square feet of office space coming from other developments which will be ready by 2019. The existing office oversupply condition would be worsened in 2019.

(Property Guru, 29/04/2016)

Tuesday 10 May 2016

Ireka’s 23% associate sells Aloft KL for RM418.7 million

Aseana Properties Ltd, a London-listed property developer in which Ireka Group Bhd has a 23% stake, is selling the Aloft Kuala Lumpur Sentral Hotel to Prosper Group Holdings Ltd for RM418.7 million (US$104.6 million). At current exchange rates, Aseana will record a gain approximately RM138.72 million from the proposed disposal. The transaction is targeted to complete by 3Q 2016.

(The edge property, 01/04/2016)

Gabungan AQRS’s unit to sell land in Selangor for RM50.38 million

Gabungan AQRS Bhd’s 52% owned unit, Prestige Field Development Sdn Bhd (PFDSB), has entered into a sale and purchase agreement with Stratmont Development Sdn Bhd for a proposed disposal of a 7.977 acre (3.228 hectare) leasehold land in Selangor for RM50.38 million. The expected gain from the proposed disposal of the land is about RM14.70 million. It is expected to be completed by the financial year ending December 31, 2016.

(iProperty, 07/04/2016)

Sale of Sky Express Hotel

The conditional period for the sale of Sky Express Hotel has been extended for a further one month for the purchaser to fulfil the last remaining condition precedent, which is to obtain written approval or confirmation from the Economic Planning Unit for the acquisition. The disposal is expected to be completed in the second quarter of 2016.

(The edge property, 12/04/2016)

Tropicana’s sale of Dijaya Plaza goes unconditional

Tropicana is selling the Dijaya Plaza office building to Kenanga Investment Bank Bhd for RM140 million cash. The disposal consists of 3,674 sq meter of freehold land together with an en-bloc 19-storey office tower and 322 parking bays over two levels of basement. The conditions precedent for the proposed disposal has been satisfied and the disposal is expected to be completed in second quarter this year.

(The edge property, 12/04/2016)

KWAP outlines investment moves

Retirement Fund Inc (KWAP) is finalising the acquisition of an office tower in Kuala Lumpur’s Golden Triangle for RM580 million. The office tower will be the second building that KWAP owns in the Klang Valley. As end of March, KWAP had RM122 billion in assets.

(New straits times, 13/04/2016)

PKNS seals 60-year land lease agreement with Lam Soon

The Selangor State Development Corporation (PKNS) has signed a 60-year land lease agreement with Lam Soon Edible Oil (M) Sdn Bhd to develop offices, warehouses and research and development centres over 9.68 ha land at Selangor Cyber Valley, Sepang. It will be the 11th township with GDV of RM16.9 billion to be developed by PKNS in Sepang. Lam Soon will pay about RM76.9 million to lease the land from PKNS.

(The Star, 13/04/2016)

Melati Ehsan buying Selayang land for RM77.7 million

Bayu Melati Sdn Bhd, wholly-owned subsidiary of Melati Ehsan Holdings Bhd (MEHB) is acquiring three parcels of leasehold land measuring a total of 37,078 sq meter in Bandar Selayang for RM77.74 million cash from Aturan Utama Sdn Bhd. The land is proposed to be developed into a mixed project and the purchase price could be reduced to RM70 million if it required to build affordable homes under the “Rumah SelangorKu” scheme.

(The Sun, 18/04/2016)

Majestic Development Sdn Bhd and Univas Sdn Bhd agree to extend completion period of Semenyih land buy

In July 2014, Eco Majestic Development had entered into a share sale agreement to acquire 199.37 hectares in Beranang, Semenyih for RM225.33 million from Univas (Far East) Sdn Bhd. Both parties have agreed to extend the completion period to three month from a month previously upon the expiry of the completion period.

(iProperty, 21/04/2016)

Compugates unit to dispose of Dengkil land

Compugates Holdings Bhd’s 70%-owned subsidiary of Compugates Development and Mining Sdn Bhd plans to dispose of a 25.09 ha of agriculture land in Dengkil, Selangor to Bangsawan Bumimaju Sdn Bhd for RM62.12 million.

(The edge property, 22/04/2016)

Monday 9 May 2016

EPF to buy 80% of MRCB’s ‘exchange’ land in privatisation of Bukit Jalil sports complex

The Employees Provident Fund (EPF) has offered to acquire 80% interest in ‘exchange’ land that Malaysian Resources Corp Bhd (MRCB) will be receiving under the National Sports Complex privatisation project for RM421.5 million. The remaining 20% will be hold by MRCB. The three parcels of leasehold ‘exchange land’ totalling 37.4 ha, make up the RM1.632 billion consideration for the proposed privatisation job undertaken by MRCB to refurbish and upgrade facilities at the National Sports Complex.

(The edge property, 25/04/2016)

Sunday 27 March 2016

Mall by Mitsui Fudosan in Bukit Bintang City Centre by Ecoworld

Mitsui Fudosan will develop a nine-story, 45 billion yen ($397 million) mall in Malaysia with local partners as part of an effort to solidify its overseas earnings base for the future.

Mall by Mitsui Fudosan in Bukit Bintang City Centre by Ecoworld
Costlier than the company's outlet malls in Taiwan and the Chinese city of Ningbo, this will likely mark the biggest project for a commercial facility abroad by a Japanese real estate developer. The plan is to open a LaLaport mall like those of Japan in Kuala Lumpur in 2021.

Working with Eco World Development Group and two other local partners, Mitsui Fudosan will set up a special-purpose company as early as this year.

The mall will sit on the 78,500-sq.-meter premises of the Bukit Bintang City Centre, a project co-led by Eco World that includes residential and office space.

The mall will boast five above-ground floors and four underground floors. Construction will begin in 2017. Retail space will likely total 80,000 sq. meters -- close to the 102,000 sq. meters of a major LaLaport mall in Chiba Prefecture. The plan is to draw about 300 businesses to the new facility, among them restaurants, household goods stores and fashion retailers. Tenants focusing on middle-income consumers, including Japanese businesses gaining popularity in Malaysia, will be solicited. Annual sales are targeted at 42 billion yen.

Mitsui Fudosan intends to apply Japa
nese know-how to running the mall through such steps as training store managers and introducing a system to track daily sales of each store. In this way, it seeks to distinguish the facility from the competition.

Malaysia has enjoyed relatively high real gross domestic product growth among members of the Association of Southeast Asian Nations. With the ranks of the middle class seen continuing to expand, the Japanese company expects demand to stay strong.

Mitsui Fudosan opened an outlet mall near an international airport in Malaysia last year. Tenants catering to middle-income consumers are faring well, and sales have beaten initial expectations. An expansion is now planned, driven by popular demand.

Mitsui Fudosan's wide-ranging business domains include commercial facilities, housing, office buildings and hotels. In Japan, the shrinking population limits prospects for demand growth in housing and office buildings. The company is thus strengthening commercial establishments, such as outlet malls, in Asia. And in the London area, it is working on mixed-use facilities.

The company plans to invest 550 billion yen overseas from fiscal 2015 to fiscal 2017 and to spend about as much on office building and other projects in Japan. Mitsui Fudosan hopes to generate about 12% of its overall operating profit abroad in fiscal 2017, up from just 6.4% in fiscal 2014.


(Nikkei Asian Review, March 26, 2016)