Naim to develop RM300m mixed project in Kuching

SARAWAK-based Naim Holdings Bhd (Naim), a property developer and construction group, will develop prime land in Batu Lintang, Kuching, into the state's biggest comprehensive mixed development project, costing more than RM300 million.

Managing director Datuk Hasmi Hasnan said the proposed development would be sprawled over 13.597ha and be completed over 20 years.

The project will comprise a four-storey shopping mall with basement car park, office tower block, hotel tower, a 36-storey office tower with basement and elevated carpark, showroom, 18-storey condominium block and a 27-storey high-rise apartment.

"We will incorporate a water theme park, a roof garden and incorporate plenty of greeneries so as to come out with a development that is eviromental friendly and one that the local populace can enjoy and benefit from," he said.
The project will be developed on a joint venture basis between Naim, Sarawak Mosque Welfare Trust Board and Tabung Baitulmal Sarawak.

The three parties signed a memorandum of understanding to facilitate the venture witnessed by Chief Minister Tan Sri Abdul Taib Mahmud.

Hasmi said Sarawak Mosque and Tabung Baitulmal will each have a 15 per cent equity in the project venture while Naim would hold the remaining 70 per cent.

"We estimate employment for more than 2,000 people in the project," he said, without disclosing, when the construction will begin.

By Bernama

Tesco plans 3 more stores in Penang, Kedah

TESCO Stores (Malaysia) Sdn Bhd is expanding its business in the northern region by opening three more outlets in Penang and Kedah within this year.



Tesco Malaysia chief operating officer Tim Golding said the company wanted to bring its Tesco offers to more customers and the new outlets will be opened at Seri Tanjung Pinang in George Town, Penang, and in Kulim and Alor Star, Kedah.

He said the new outlet at Seri Tanjung Pinang is expected to open in June.

The company has invested RM20 million on setting up the leased outlet, making it a long-term tenant at the development, which has been said to be the largest seafront project in Penang's history.

"Tesco Malaysia also has further developments in Alor Star and Kulim, where two more of our outlets will be opening this year. Both projects cost about RM50 million each," he said at the official launch of Tesco Bukit Mertajam at Jalan Rozhan yesterday.

Tesco Bukit Mertajam, which measures 9,000 sq m, opened for business on September 23 last year and is Tesco Malaysia's 36th outlet in the country and Penang's fourth.

Apart from more than 60,000 product lines in fresh food, groceries, apparel, electrical appliances, furniture and health and beauty items, the outlet also features over 50 shop units and 30 pushcart stalls.

Golding said the new Alor Star outlet will be located in the Stargate township, a 124ha mixed development in Tandop.

Tesco Kulim began constructions in September last year in Taman Lembah Impian. The two-storey hypermarket is expected to be completed in the second quarter of this year.

Golding said Malaysia was a fantastic market for Tesco, which plans to open seven to eight new outlets annually. The company is presently in planning stages for the new outlets nationwide.

He added that Tesco Malaysia also boasts a 100 per cent local employment rate, with Malaysians filling various positions in the company across the country.

Tesco Malaysia government relations and legal affairs director Azlam Shah Alias said for 2011, the company would invest an estimated RM500 million.

It was reported earlier this month that Tesco Malaysia has plans to invest RM280 million and open four more hypermarkets over 12 months starting from March, bringing the total number of stores it has nationwide to 40.

Tesco Malaysia started operations here in 2002 with its first store in Puchong, Selangor, and has invested over RM3 billion since. Last year, it recorded RM3.6 billion in revenue.

By Business Times

Mall-in-a-park first of its kind in Malaysia

Two Malaysian actors plan to open a shopping mall within a park in October next year, said to be the first of its kind in Malaysia.



Dubbed an outdoor living mart, the project will occupy a land area of 5.9ha located between Puchong, Seri Kembangan and Putrajaya.

The project, dubbed "Garden Explore", will cover seven major zones of outdoor retailing lots, a plaza and entertainment hall, offices, cafes, restaurants and one petting zoo.

"It's the first of its kind in Malaysia but there have been similar developments in China," said Jack Lim, a director of Green Atmosphere Sdn Bhd, at the launch in Kuala Lumpur yesterday.

Managing director Nick JM Wong, a former actor, controls the firm while Weng Zheng Steel Bhd chairman Tan Ching Kee is the adviser.

Construction work is due to start after the Chinese New Year next year. The company has not set any revenue target for the pioneer project.

"The gross development value of the project is RM20 million and this does not include the land cost which was leased from Tempo Properties Sdn Bhd," Lim said.

He declined to reveal the leasing cost, which runs for 10 years.

A unique feature of the project is that cars will not be allowed into the area. Rather, visitors will have to walk or cycle their way through the mall.

By Business Times

Malls expand and upgrade to stay ahead of the competition

WITH new malls being developed all the time, shopping complexes that have been around a while need to continue to re-invent themselves to keep up with the competition. So what do these malls have to do to stay attractive and be able to pull in the crowds'


Kevin Tan Gar Peng ... ‘We designed the mall in such a way that coming here would be more of an adventure than just a shopping trip.’

The Sunway Pyramid shopping centre, which has been around since 1997, is still being continuously upgraded to keep up with the competition, says Sunway IFM Sdn Bhd retail division chief operating officer Kevin Tan Gar Peng.

Due to demand for added space, we are expanding a section of our mall after Chinese New Year (which falls in early February), he says in an interview.

The upgrade, says Tan, will comprise the addition of three levels of retail space.

There will be another phase of expansion. Collectively, both phases will have a collective gross lettable area of 300,000 sq ft, Tan says, adding that it is too early to reveal the total investment cost for the upgrade.

He says there is always room for improvement at the mall. The Sunway group has already invested some RM550mil in upgrades since the malls first inception.

About RM30mil was spent to upgrade and improve the fly-overs and connecting roads around the shopping centre to improve accessibility to the mall, Tan says.

Sunway Pyramid trumped all entries at this years FIABCI awards to become the Best Retail Development 2010.

Of course, our goal is not to win awards. But winning it is a bonus and a testament to our hard work. Winning encourages us to work harder, says Tan.

He says the mall spends about RM3mil annually to light up the surrounding area of the mall during festive seasons.

According to Tan, the mall has been experiencing full take-up for the past seven years, with current rental rates at about RM10 per sq ft.

This is in spite of the continuous expansion weve been making to the mall.

Compared to other malls in the country, the Sunway Pyramid shopping centre has the advantage of being near a hotel and a theme park namely the Sunway Resort Hotel & Spa and Sunway Lagoon.

Our strategic location provides a choice to people who come here, says Tan.

Arab tourists who come with their families enjoy this option very much. The men like the facilities that the hotel offers. Their children love the rides at the theme park and their four wives can enjoy the shopping lifestyle, Tan enthuses.

The appeal of the Sunway Pyramid shopping mall, especially to the Arabs, could also be because of its Egyptian-inspired pyramid and lion statue at the main entrance.

Tan says the mall is the countrys first themed shopping and entertainment centre.

We designed the mall in such a way that coming here would be more of an adventure than just a shopping trip.

Pulling in the crowds

According to reports, property consultants expect 20 new malls with a combined net floor area of 4.4 million sq ft to be opened this year.

According to statistics by the National Property Information Centre, as at March 2010, there were 49.98 million sq ft of existing retail space within the Klang Valley. A further 7.18 million sq ft is under development and 7.5 million sq ft of new space planned.

Citing data from the Malaysian Association for Shopping and Highrise Complex Management, Tan says there are currently about 300 shopping malls in the country, with half of them in the Klang Valley alone.

The competition (for malls) level in the Klang Valley is great. However (with the global economy picking up), tourist arrivals into the country have increased this year. That helps to support the malls.

However, while the improved economic outlook has seen a tourist influx into the country, other countries, especially Singapore, have been luring Malaysian tourists to their malls, says Tan.

Singapore is aggressively promoting their tourist destinations, such as Resorts World Sentosa, here.

According to statistics from Singapores tourism board website, the number of Malaysian travellers into Singapore increased 40.2% to 95,371 for September 2010 from 68,008 in the previous corresponding period.

For the nine-month period ended September, the number of Malaysian travellers rose 44.5% to 724,528.

According to various reports, the surge in tourist arrivals into Singapore has been attributed to the opening of Resorts World Sentosa and Marina Bay Sands earlier in the year.

Tan adds that with the advent of budget airlines, travelling has become cheaper.

With cheaper flights now, more Malaysians are going abroad but that does not mean that the same amount of foreigners are coming in, he says, adding that local malls need to aggressively market their products or risk losing customers.

Looking forward, Tan is optimistic about the local retail sector. He says that the Governments proposal under Budget 2011 to abolish import duty on 300 goods preferred by tourists is a good move.

The move now makes branded goods more affordable. Now, shoppers dont have to travel overseas to buy such goods, he says.

By The Star

CapitaMalls buys Queensbay Mall

CapitaMalls Asia Ltd is buying Queensbay Mall in Penang for about RM658 million.

The acquisition will be made through CapitaMalls Asia's subsidiaries and an asset-backed securitisation structure.



CapitaMalls Asia will buy about 90.7 per cent of the mall's retail strata area and all its car park spaces, the company said in a statement yesterday.

Queensbay Mall is Penang's largest mall located at Bayan Lepas along the southeastern shorefront of Penang island and about 20 minutes' drive from Penang International Airport.

It is a family-lifestyle mall located at the heart of a 29.57ha prime waterfront integrated development which comprises a hotel, a wide range of residential homes and planned office towers.

It is easily accessible from the north of the island via the Jelutong Expressway and from the south via the Bayan Lepas Expressway.

This will be CapitaMalls Asia's second mall in Penang and fourth in Malaysia.

The other three malls - Gurney Plaza in Penang, an interest in Sungei Wang Plaza in Kuala Lumpur and The Mines in Selangor - are owned through CapitaMalls Asia's stake in CapitaMalls Malaysia Trust.

"Gurney Plaza, which we already own through CapitaMalls Malaysia Trust, and Queensbay Mall are the two best malls in Penang.

"The acquisition of Queensbay Mall, the largest shopping mall in Penang, will substantially strengthen CapitaMalls Asia's market leadership in the state.

"This acquisition signals our ongoing commitment to invest in Malaysia's retail sector for the long-term, following our listing of CapitaMalls Malaysia Trust in July this year," CapitaMalls Asia chief executive officer Lim Beng Chee said in the statement.

By Business Times

CapitaLand unit to buy Penang mall

SINGAPORE: CapitaMalls Asia, a unit of Southeast Asia’s largest property developer CapitaLand, said today it will acquire a mall in Penang, Malaysia, for S$275.6 million (US$209.9 million).

The firm said Queensbay Mall, its fourth in Malaysia, will form the seed asset for its planned RM1 billion Malaysia retail property fund.

“The acquisition of Queensbay Mall, the largest shopping mall in Penang, will substantially strengthen CapitaMalls Asia’s market leadership in the state,” said Lim Beng Chee, CEO of CapitaMalls Asia.

By Reuters

PHB secures anchor tenants for Nu Sentral

Both Parkson and GSC take up about 25 per cent of the 460,000 sq ft net lettable area in Nu Sentral, says Pelaburan Hartanah Bhd

Pelaburan Hartanah Bhd (PHB) has secured two anchor tenants, Golden Screen Cinema (GSC) and Parkson, for its seven-storey retail development called Nu Sentral in Kuala Lumpur Sentral.

Nu Sentral is part of a bigger 2.4ha integrated commercial development called Lot G, being jointly developed by Malaysian Resources Corp Bhd and PHB.

"Both Parkson and GSC take up about 25 per cent of the 460,000 sq ft net lettable area in Nu Sentral," PHB managing director and chief executive officer Kamalul Arifin Othman told Business Times.

The development will also have a 27-storey office building with a net lettable area of 450,000 sq ft.

Lot G, with gross development value of RM1.4 billion, is slotted for completion in 2012. It is set to be one of the developments PHB plans to inject into its recently-launched Amanah Hartanah Bumiputera unit trust scheme.

Kamalul said PHB also was in the final stage of evaluation for the development of an integrated commercial complex on a five-acre site at Jalan Ampang.

"We are talking to several parties now, and looking at starting physical work on phase one in mid-2011," he added.

The development is slotted to have a gross development value of RM1 billion and also to be injected into AHB.

PHB is the sponsor for AHB, a RM1 billion unit trust aimed at increasing Bumiputera participation in the commercial property sector.

The fund enjoys beneficial ownership of five properties, ultimately owned by PHB. They are three office buildings CP Tower, Wisma Consplant in Damansara and 26 Boulevard in Putrajaya; Tesco Setia Alam and an industrial complex in Shah Alam.

Kamalul declined to reveal the terms of the beneficial ownership agreement but said the arrangement maximises the unit trust's income distribution to ensure that unitholders will enjoy a competitive and consistent return from their investment.

Early estimates are that initial returns could be in the region of 6 per cent for the first year of the fund.

By Business Times

KSL City shopping mall set for Sunday opening

Ku Hwa Seng posing with a model of KSL City, which includes two hotel blocks and two 33- storey apartment blocks.

JOHOR BARU: KSL Holdings Bhd will be opening part of its KSL City project development the four-storey retail complex on Dec 12.

Executive director Ku Hwa Seng said the retail complex would be Johor's largest shopping mall with a gross floor area of 880,000 sq ft and 2,800 indoor parking lots.

He said the podium block had 420 retail shops, 50 food and beverage outlets, and eight cineplexes, including two 3D screens.

Ku said the atrium of the retail complex would also house Johor's largest indoor electronic billboard made up of nine 62-inch flat-screen LCD televisions.

Work on other components of the project is progressing well and they are expected to be ready by the end of next year, he said in an interview with StarBiz.

Dubbed one of the biggest commercial complexes in the southern region, the RM500mil KSL City project also houses hotel and apartment blocks.

The project is also the first such development in Johor that combines retail, hospitality and high-rise residential living, similar to those found in Kuala Lumpur and Singapore.

The 1,000-room KSL Resorts Hotel comprises two 20-storey blocks while D'Esplanade Residence @ KSL City offers 346 units two 33-storey apartments blocks.

Glass Tower I and II offer 242 and 104 units respectively with built-up areas ranging from 93.83 to 929.03 sq m that are priced from RM500,000 each.

Our apartments have attracted Malaysians as well as buyers from Hong Kong and Singapore. With the influx of foreign investors to Iskandar Malaysia, we believe they will also snap up our units, said Ku.

He said the project's location in Century Gardens less than 3km from the Johor Baru city centre and the Johor Baru Customs, Immigration and Quarantine complex in Bukit Chagar would be a strong selling point to buyers.

Ku said KSL was confident that the hotel would do well, considering most hotels in the Johor Baru central business district were recording almost 90% occupancy rate.

He said Johor also benefited from Singapore's Sentosa World Resorts and Marina Sands Resorts as Malaysians planning to visit the resorts would probably stay in Johor Baru as the hotel rates in the republic were too costly for the average visitor.

Presently, Singapore is facing a shortage of hotel rooms and the average room rates of S$300 could further increase to S$500 by the time KSL Hotel is completed.

We are planning to have a tie-up with the two Singapore casino operators to provide shuttle bus services from KSL City to the two resorts, said Ku.

By The Star

Bukit Bintang’s covered walk among stars

PETALING JAYA: The Government's proposal to revive plans for the Bukit Bintang area to be developed along the lines of Singapore's famous shopping haven Orchard Road to boost tourism and increase shopping expenditure, has received positive response from retail associations and real estate consultants.

Under the Economic Transformation Programme (ETP), a 6km-long covered walkway would be built in the Bukit Bintang area. The walkway is part of the RM204bil public-private investment master plan under the ETP's Greater Kuala Lumpur development.

For comparison, Orchard Road is a 2.2km one-way street flanked by distinctive shopping malls on both sides of the road.

Malaysian Retailer-Chains Association (MRCA) secretary general Valerie Choo said in principle, the Orchard Road concept would be good for Bukit Bintang.

MRCA is happy that more emphasis has been placed on reviving Bukit Bintang. Malaysia is now able to sell Bukit Bintang as a tourism product while tourists and locals will be able to walk seamlessly and comfortably from one mall to another, she told StarBiz in an e-mail.

However, she said more needed to be done such as shopping mall enhancement and refurbishment.

This is what Singapore Tourism Board did in 2009, pumping in S$40mil to rejuvenate Orchard Road together with other stakeholders i.e. shopping malls and building owners, she said.

Choo suggested planting more trees to create lush greenery and shade to complete a multi-sensory experience for tourists and locals alike.

But the most vital thing is how the traffic condition can be improved in that area, she said, adding that road closures were now carried out without stakeholders being informed beforehand.


H.C. Chan

Malaysian Association for Shopping and Highrise Complex Management (PPK) president H. C. Chan said Bukit Bintang had the pedigree and history in shopping since its first shopping mall Sungei Wang Plaza opened over three decades ago and this gave the area tremendous potential to be a world-class shopping destination.

Creation of a comprehensive pedestrian network would be a major step towards integrating all the mall and hotel facilities and linking them to public transportation, befitting and expected of a world-class shopping destination, he told StarBiz via e-mail.

Besides customer-friendly physical integration, he said there was a need for a long-term holistic approach of branding and marketing Bukit Bintang as a single shopping haven entity, similar to Orchard Road or Regent Street of London.

PPK urges all mall owners and managers in Bukit Bintang and interested stakeholders like the City Hall to adopt a common platform and work closely together for the common good of the country's tourism and their respective properties, he said.


Tan Hai Hsin

Henry Butcher Retail managing director Tan Hai Hsin said reviving the concept of Orchard Road in Bukit Bintang area was viable and long outstanding. It should have been done many years ago! he told StarBiz in an e-mail reply.

However, Tan said many things still needed to be done to make Bukit Bintang area a world-class shopping district, including:

Covered connection

All major shopping centres should be linked via a series of tunnels and/or bridges that provide cover and protection from the rain and the sun. Berjaya Times Square is now disconnected from Sungei Wang Plaza. There is no covered bridge or tunnel joining both buildings. Also, Plaza Low Yat is disconnected from Sungei Wang Plaza/Bukit Bintang Plaza. Sungei Wang Plaza/Bukit Bintang Plaza is linked to Lot 10 via a bridge. Lot 10 is disjointed from Fahrenheit 88, which is not directly linked to Starhill Gallery or Pavilion.

Pedestrian mall

Jalan Bukit Bintang or Jalan Sultan Ismail should be turned into a pedestrian mall during the weekends. This was attempted many years ago but with great resistance from the hotel, office and retail operators in the area who complained their customers would not be able to access their premises when the road is closed.

Public facilities

Public facilities such as a tourist information centre, public toilets and street furniture are important components of a world-class shopping district. The tourist information booth in front of McDonald's is too small, unfriendly and stocks too few brochures. According to recent media reports, the public toilets (in front of McDonald's and Lot 10) are not well-maintained.

Promotion

A tourist brochure or shopping directory just for the Bukit Bintang shopping district is a must. In Singapore, there are a few publishers on Orchard Road's retail attractions and other facilities.

By The Star

A leisure place for Kelantanese

An artist’s impression of QueensPark SportzCity & Boulevard project in Kelantan.

KRISTANA Holdings Sdn Bhd, the property arm of logistics company Metroport Group Bhd, is investing RM30mil to build its maiden property project, the QueensPark SportzCity & Boulevard lifestyle and recreational centre in Kota Baru, Kelantan.

Meeting Kristana group managing director Datuk Dr Stanley Chew, one is tempted to ask the obvious why Kelantan?

The state is no doubt popular for its rich traditional culture and heritage. However, more often than not, it's Kelantan's conservative enforcement rules towards entertainment that's more renowned.

Still, Chew is confident about the prospects of the company's QueensPark SportzCity & Boulevard project, insisting that it would be the first of its kind in Kota Baru.

Our concept is different from the conventional shopping complexes and hypermarts in Kota Baru. Apart from (just) shopping, we will also offer recreational facilities and al fresco dining to potential customers, he tells StarBizWeek. The project is slated for completion next month and will be officially launched in April 2011. The QueensPark SportzCity is a commercial sports and recreational centre that will boast the largest bowling outlet (with 36 lanes), snooker and pool centre, four futsal courts (including one FIFA-sized court) and a musical roller-skating rink (also a first in the state's capital).


Datuk Dr Stanley Chew ... ‘Our concept is different.’

Chew says apart from commercial reasons, having multiple bowling alleys and futsal courts means the centre would also be able to host international sports events some day.

He adds that space within QueensPark SportzCity would only be rented out (rather than sold) as the company wants to maintain control over the activities that are offered at the centre.

We already have interested bowling operators that want to start business at our centre, says Chew.

Getting the tenants

Meanwhile, the QueensPark Boulevard comprises 32 units of two and three storeys of shopping space. These shops will comprise food and beverage outlets, convenient stores, health and beauty, information technology, crafts centres and banking services.

We will start offering the stores to potential tenants this month, says Chew, adding that the shops would be priced at around RM220 psf.

He also says selection of the tenants would be selective, adding that Kristana would also have a say on who the tenants wanted to sub-let their premises to.

We want to have a certain level of control over what we offer at QueensPark Boulevard, says Chew.

He says 70% of the tenant mix would comprise local businesses.

People that come to Kelantan want to enjoy and experience the local culture and food. The remaining 30% of the tenants will offer foreign products. This is to offer variety to our customers.

Chew says the centre was developed on the build-then-sell concept so that potential tenants would have the assurance that the building is already up and ready.

When they purchase the premises, they would be able to rent it out and start earning rental yields immediately. The project is also strategically located within prime land. As there is already a park and crafts centre nearby, there's an available crowd to attract.

Chew says the centre would also be able to leverage on Kelantan's unique weekend' which falls on Friday and Saturday.

Kelantanese observe Saturday and Sunday as their weekend. This means that the state's weekend is actually three days long instead of just two. A longer weekend means more time for the crowds to come in and shop.

The location

The QueensPark SportzCity & Boulevard is strategically located opposite the Taman Perbandaran Tengku Anis recreational park and close to a crafts centre, says Chew.

Because of the location of our centre, we can attract a wide range of customers. Rather than just attract shoppers, the area will pull in crowds that want to enjoy a walk in the park. Those that appreciate cultural arts can go to the crafts centre.

After that, they could shop or enjoy a meal at our centre. Alternatively, they could play a game of futsal, go roller-skating or bowl.

Chew says with the project's strategic location, the aim is to position the centre as a hub for sports, lifestyle and entertainment activities.

According to Chew, the QueensPark name was inspired by the Tengku Anis recreational park (Tengku Anis being the former queen of Kelantan).

He says the development was influenced by international public parks, such as Hyde Park and Central Park in London and New York respectively.

Hyde Park and Central Park are popularly sought-after addresses and we wanted to emulate that by having a complex by a famous park in Kota Baru, says Chew.

Pulling the crowd

Apart from attracting customers from within Kelantan, Chew hopes the centre would also be able to pull in crowds from neighbouring countries, especially Thailand.

A lot of people from the south of Thailand actually come to hypermarts in Malaysia to purchase certain goods because they are cheaper here (in Malaysia).

The QueensPark SportzCity & Boulevard is located about 45 minutes away from the Thai border and we hope to target potential customers from there, he says.

Chew says that many of the existing entertainment outlets in Kelantan were already packed and feels that customers and patrons are eagerly looking for a new place to unwind.

Emulating the trend

One of the reasons Kristana decided to build its project in Kelantan rather than the Klang Valley is because there were already plenty of sports and recreational outlets in Kuala Lumpur or Selangor.

The challenge of building such a centre in the Klang Valley is that there would be too many competitors, says Chew. However, he adds that the company is looking to set up similar centres in other locations.

We are looking for similar type of locations, meaning that we want to set up a lifestyle and recreational centre near an available park. This means that we'd probably develop it at the fringe or outskirts of the city rather than in the heart of the city itself. We're looking at replicating this model within the Klang Valley and perhaps Ipoh, Chew says.

He adds that the long-term goal is to develop a similar project within the South-East Asian region.

If we go regional, than 30% of the tenant mix will comprise Malaysian businesses, Chew says.

By The Star

Facing stiff competition in retail

KOTA Baru, the capital of Kelantan, is home to a few shopping complexes and the addition of Kristana Holdings Sdn Bhd's QueensPark SportzCity & Boulevard could face stiff competition.

According to Kristana group managing director Datuk Dr Stanley Chew, the project will be positioned as a lifestyle and recreational centre, making it different from the conventional shopping mall as it will also offer sports and leisure activities such as futsal (football that is mainly played indoors and on a smaller playing surface), pool and snooker, bowling and roller skating.

But for the average shopaholic or person looking to kill some leisure time, it just means that they are now spoiled for choice.

The malls currently located in Kota Baru are KB Mall, Kota Baru Trade Centre, Pelangi Mall, Kota Seri Mutiara Shopping Centre and Tesco Kota Baru.

One Kota Baru-based real estate agent feels that there were already sufficient shopping centres.

If you also include hypermarkets (and malls), than I feel that there is an oversupply, says Azihan, a realtor from Kelantan-based property consultant firm Rahim & Co.

Every town in Kelantan already has a shopping centre, he adds.

Malaysian Association for Shopping and Highrise Complex Management advisor Richard Chan, who was involved in the planning of the development of KB Mall in Kota Baru, argues that there is plenty of room for growth for shopping complexes in Kelantan.

There's always room for growth. When Tesco came up (in Kota Baru), people were saying that KB Mall would be dead! But KB Mall is still doing well and commanding good rental rates, he says.

According to Chan, rentals on the ground floor of KB Mall was commanding about RM20 psf.

To have a successful shopping mall, you need certain criteria, such as good management, accessibility, location and anchor tenants. You also need good advertising and promotional campaigns that are done properly, says Chan.

Azihan says that for a new shopping centre to be successful in Kota Baru, it needs to be different from the rest, adding that the QueensPark SportzCity & Boulevard looked poised to offer something new to shoppers and customers.

One industry observer says that on average, consumer spending patterns (in Kota Baru) was good.

Apart from locals, there are also a lot of tourists from Southern Thailand coming here to shop. The shopping centres here are often packed especially during school holidays, he says.

According to Azihan, one concern that non-Kelantanese often have about the state is its strict entertainment rules.

But calls are already being made to the state Government to relax its stringent entertainment laws, he says.

Last month, it was reported that the Kelantan government was urged to relax its enforcement of rules under the state entertainment enactment to allow activities of traditional and cultural arts to perform in the state.

Seni Suara Desa Association president Baharuddin Ghani was quoted as saying that it was necessary that the conditions be relaxed to develop and promote the state's culture and arts.

By The Star

I-Berhad in talks to revive mall project

PROPERTY developer I-Berhad is currently in talks with relevant parties to revive its shopping mall project in Shah Alam, Selangor, said its top executive.

The i-City mall project was halted last year due to the global financial crisis. It was initially reported that the mall will span about one million square feet, almost equivalent to Mid Valley Megamall in Kuala Lumpur.

"We are currently in discussion stage and we will announce the plans when appropriate," chief executive officer Eu Hong Chew said but declined to elaborate further.

Earlier reports speculated that Singapore's CapitaLand Ltd would be I-Berhad's foreign partner to help develop the mall.
There are currently about four main shopping malls in Shah Alam - Shah Alam City Centre, Plaza Masalam, Kompleks PKNS and Alam Sentral mall.

i-City is an estimated RM2 billion project on 29ha that boasts a broadband speed of 20Mbps with fibre optics network and a back-up power supply.

The first phase, comprising 6.1ha with 500,000 sq ft of office space, is now 60 per cent occupied.

Yesterday, I-Berhad launched a 10,000 sq ft outdoor convention area known as i-Walk. The convention arena is an indoor-type air conditioned environment that is designed with 1,000 programmable LED lights making it an ideal avenue for corporate events or private functions.

The i-Walk can accommodate up to 33,000 people at one time and is expected to be ready by the end of December. The project is part of its phase two development covering 3.64ha with a gross development value of over RM150 million.

Also present at the event was Minister of Housing and Local Government Datuk Wira Chor Chee Heung.

In his speech, Chor praised i-Berhad for providing township services such as landscaping, security, rubbish collection and traffic management within its i-City development.

"This is in line with ministry's mission of having human settlements with integral facilities, social and recreational services," he said.

By Business Times

CapitaMalls to buy Gurney Plaza block

PETALING JAYA: The manager of Capitamalls Malaysia Trust, CapitaMalls Malaysia REIT Management Sdn Bhd, proposed to acquire a retail extension block of Gurney Plaza and parking lots at the complex in Penang for RM215mil.

A filing with Bursa Malaysia showed that CapitaMalls Malaysia REIT had entered into a conditional sale and purchase agreement with Gurney Plaza Sdn Bhd for the acquisition of a nine-storey retail extension block adjoining Gurney Plaza with a net lettable area of about 139,964 sq ft as at Sept 30, comprising four levels of retail space and car parking bays. The deal also includes another 129 parking bays at Gurney Plaza itself.

“The proposed acquisition is in line with the manager’s investment strategy to provide unitholders with long-term and sustainable distribution of income and potential capital growth,” it said, adding that the building has a forecast property yield of about 7.1% for 2011.

As at Nov 1, Capitamalls Malaysia Trust is the largest “pure-play” shopping mall real estate investment trust by property asset value in Malaysia and the proposed acquisition will further strengthen its position. Following the completion of the proposed acquisition, its property asset value is expected to increase from about RM2.13bil as at Sep 30 to about RM2.36bil.

By The Star

1Shamelin mall to have more than 1,000 stores

The much anticipated 1Shamelin mall in Cheras is scheduled to be completed by the second quarter of 2011 with a host of amenities set to bring in shoppers.

A sneak preview of the nine-storey mall located at Taman Shamelin Perkasa was held recently for the media at Westin Hotel in Kuala Lumpur.

The new mall boasts a gross build up of one million square feet with over 1,000 stores with 1,500 carparks for some 500,000 residents who lived nearby.

For entertainment shoppers can choose from Tanjong Golden Village Cinemas (TGV), One Pioneers Badminton Academy, Amp Square Karaoke to CYC Mega Leisure.

According to the mall’s senior complex manager Wong Chee Keong, fashionistas will enjoy themselves at the street bazaar located at the Lower Ground, Ground and Upper Ground floors.

“We have young entreprenuers who are arbiters of style and fashion who will start their own business. We hope they take up this opportunity and share their successes with us,” he said.

There are also themed zones such as Trendy & Fashion, Cyber & Lifestyle, Integrated, Eateries & Snack, Beauty & Pamper, Health Care & Academic as well as Sports & Entertainment.

Shoppers can also enjoy the gastronomic delights that will be available 24 hours by alfresco eateries surrounding the mall.

“Usually, shopping centres adopt two stages and stage two involves expansion with increased lettable area adjacent to existing spaces. In our case, we have two stages that will be developed at the same time,”Wong said.

The phase two is right above phase one and will have three extra floors dedicated to the entertainment and sports hub.

The third floor will house a supermarket and household stores, the fourth floor will have the badminton academy, health care, sports and lifestyle retail stores while the fifth floor is dedicated to TGV with eight screens.

For badminton enthusiasts, the badminton academy with 14 courts led by Malaysia’s top badminton players Wong Choong Hann, Lee Wan Wah, Chew Choon Eng and Chan Chong Ming will be a must try.

For now more than 50% of the retail outlets have been taken up.

By The Star

Mall operators see strong sales

Members of the Malaysian Association for Shopping and Highrise Complex Management are confident that the shopping industry will register double-digit growth by next year.

Shopping mall operators and retailers expect their businesses to increase up to 15 and 6 per cent respectively next year, buoyed by tax-free incentive on 300 imported goods announced in the 2011 Budget.

The Malaysian Association for Shopping and Highrise Complex Management (PPK) president H.C. Chan said its members are confident that the shopping industry will register double-digit growth by next year.

"Members previously felt the industry would register single-digit growth. With the tax abolishment, they expect double-digit expansion. The industry is looking at between 10 and 15 per cent growth for next year.

"They hope that higher FDIs (foreign direct investments) will provide a multiplier effect that will push for higher industry growth," Chan said.

He was speaking at a joint press conference with Malaysian Retailer-Chains Association (MRCA) and Malaysian Retailers Association (MRA) in Petaling Jaya, Selangor, yesterday.

Chan described the tax-waiver proposal as "bold" and "strategic" to promote Malaysia as a key shopping destination, of which shopping mall rents are one quarter of Singapore's and one eighth of Hong Kong's.

"The announcement is a breakthrough for the tourism and shopping industries. What it means is the operational costs would be much lower," he said.

PPK adviser Joyce Yap expects the retail industry to post 10 to 12 per cent growth in 2011, although retailers group MRCA only anticipates 6 per cent growth.

"Prior to this, the retail forecast was between 5 and 8 per cent. Now, more than 90 per cent of the retailers at the Pavilion, for instance, are raising their sales target to between 10 and 12 per cent.

"We are confident they can achieve that," said Yap, who is also Kuala Lumpur Pavilion Sdn Bhd chief executive officer for retail.

She expects more international brands to open outlets in Pavilion next year.

"Two international brands that we have courted for about a year are knocking on our doors. Initially, we are looking at bringing one brand in 2011 but now there are five already making contacts.

"The minimum investment they are bringing in to do the fit-out (at the Pavilion) is between RM3 million and RM5 million. It is a good size," she said.

The MRCA is bullish too, but remains cautious on the global economic scenario.

"As far as MRCA is concerned, our forecast for 2010 is still within the range of 5 to 8 per cent," its secretary general Valerie Choo said.

"For 2011, the target is slightly lower, between 5 and 6 per cent, because of the global scenario," she added.

"The proposal is a boost to consumers spending. I can say that positive consumer sentiment is back. Once consumers start spending again, the multiplier effect on the economy is very great," she added.

MRA vice-president Datuk Ameer Ali Mydin said the proposal was crucial to help businesses remain competitive and reduce costs.

It will not only benefit tourists but also the locals who can now buy branded goods at lower prices, Ameer said.

By Business Times

SP Setia hub sets green benchmark

SP Setia Bhd's Setia City integrated commercial hub in Shah Alam, Selangor, will have 40 office towers with green certification over the next 10 to 15 years, its chief said.



Setia City is by far the only commercial hub that will have more than 40 buildings. It will include residential blocks, four-star hotel, retail mall, convention centre, hospital and university.

Setia City, estimated to be worth RM5 billion, will set a new benchmark where green development is concerned, SP Setia president and chief executive officer Tan Sri Liew Kee Sin said.

According to Liew, Setia City will be the first integrated project in the country to have all its buildings certified under the Green Building Index.

"While green buildings may not be a new phenomenon in the country, they are usually standalone structures," he said at the launch of Setia City by Housing and Local Government Minister Datuk Chor Chee Heung yesterday.
Setia City, sprawled over 96ha in Setia Alam, is expected to attract local and multinational companies, Liew said.

SP Setia is also selling land at Setia City and companies which buy the land can build their own towers to their specifications.

To date, Top Glove Corp Bhd and Khind Holdings Bhd have bought land to set up Grade A office towers as their new corporate headquarters.

Top Glove will build an 18-storey tower, while Khind is mulling over its plans.

SP Setia will also set up its corporate headquarters in a nine-storey building.

Ongoing works at Setia City include the 1.23 million sq ft Setia City Mall by Land Lease Australia.

On the hotel, university and hospital, Liew said the company will talk to local operators to run the facilities.

Meanwhile, Chor said his ministry and Bank Negara Malaysia were monitoring property price movements to prevent a housing bubble.

"We are still far from a property bubble. But we are monitoring and will take action against speculators," he said.

By Business Times

SP Setia plans 40 corporate office buildings worth RM5bil in Setia City

From left: Tan Sri Liew Kee Sin, Housing and Local Government Minister Datuk Wira Chor Chee Heung, Cheng Ping Keat, Lee Kim Meow and SP Setia deputy president and COO Datuk Voon Tin Yow with a model of Setia City

SHAH ALAM: SP Setia Bhd plans to set up about 40 corporate office buildings in its 96ha integrated green commercial hub, Setia City that is worth RM5bil in gross development value when completed in 10 to 15 years.

The company has secured Top Glove Corp Bhd and Khind Holdings Bhd to set up their corporate headquarters in the hub, which will comprise office towers, hotels, service apartments and a retail mall.

“We are now in talks with a few local companies to set up their corporate office towers here and are not discounting the possibilities to talk to multinational companies in the future,” SP Setia president and chief executive officer Tan Sri Liew Kee Sin told a press conference after the official launch of Setia City by Housing and Local Government Ministry Minister Datuk Wira Chor Chee Heung yesterday.

He said SP Setia was constructing its own corporate building at Setia City, a nine-storey block with a four-storey annexed building connected to the mall via a bridge.

The construction of its headquarters was expected to start by the first quarter of next year and to be completed by end of 2012, he added.

Meanwhile, Top Glove managing director Lee Kim Meow said the company decided to initially go for a smaller building of between six and eight floors. With the additional land area, it has the option of expanding the size of its headquarters when the need arise.

Khind Holdings chief executive officer Cheng Ping Keat said: “We are still in the planning stage and will understand our needs going forward in order to make a final decision.”

On Setia City’s future development, Liew said the company planned to launch two blocks of serviced apartment and a SoHo next year, adding that it planned to build a three or four stars hotel and was in talk with a local company for a possible joint venture.

“We plan to build a medical centre and a private university. We will make sure we embrace the group’s live, learn, work and play philosophy for our township development,” he said.

By The Star

PNB to start 10-year Warisan Merdeka project with 100-storey tower

Tan Sri Hamad Kama Piah Che Othman pointing to the site of Warisan Merdeka development during the press conference pn Wednesday.

KUALA LUMPUR: Permodalan Nasional Bhd (PNB) will be undertaking the Warisan Merdeka development over three phases in 10 years starting with the 100-storey tower next year.

At a press conference yesterday to explain PNB’s plans for the project, president and group chief executive Tan Sri Hamad Kama Piah Che Othman said the development costing RM5bil would also have a shopping complex and condominiums.

The 100-storey tower – touted to be the country’s tallest – will cost RM2.5bil to RM3bil and will have gross floor space of 3 million sq ft and 2.2 million sq ft of net floor space .

“It will be a five-star green building. We are confident its completion in 2015 will create some excitement and spill-over benefits for the development as a whole,” Hamad added.

PNB has set up wholly-owned unit PNB Merdeka Ventures Sdn Bhd to undertake the project. The company is headed by Tengku Abdul Aziz Tengku Mahmud who was from Guthrie Property Development Holding Bhd and Sime Darby Property Bhd. He came on board early this year.

“We are now finalising the project design and concept, and may invite professionals, both local and foreign, to submit their ideas for the project.

“PNB’s existing headquarters, Menara PNB will be 30 years old by the time the new tower is completed. We are looking for strategic positioning for the future and will need new office space for the expanding PNB group of companies. The Warisan Merdeka tower will become the new PNB headquarters while Menara PNB will be upgraded and leased out for recurring income,” Hamad added.

He said PNB had the capability to finance the project through internally generated funds but he did not discount resorting to borrowings “if the interest rates are attractive.”

On the rationale for PNB’s decision to undertake the project, Hamad explained: “We have been planning to develop the land since 2004 after acquiring it in 2000. After holding the land for so long, we decided it is now the right time to move ahead with the project. As an investment house, our intention is to optimise returns from the development.”

He said the project was expected to yield reasonable returns of between 8% and 10%.

“For the past few years, we have revisited the plan every year. Now with Tengku Abdul Aziz helming PNB Merdeka Ventures, we are more focused on the project and are ready to move ahead with it. The Government is also promoting this type of development.”

PNB paid RM310mil or RM220 per sq ft to buy the 36-acre land from Pengurusan Danaharta Nasional Bhd in 2000. Hamad said the market value of the land was estimated at RM800 per sq ft today.

Of the 36 acres, around 17 acres are occupied by Stadium Merdeka and Stadium Negara, which have been identified as a national heritage site. Conservation works have been undertaken to restore their heritage characteristics and the two stadiums are now being managed by the National Heritage Trust.

The overall Warisan Merdeka development on 19 acres would have to complement and blend with the heritage theme, and together with the restored stadiums, the site was set to be another major landmark in Kuala Lumpur, he said.

Hamad said although the project was scheduled to take 10 years, it may be expedited if market conditions warranted it.

“As a long-term player, we would prefer to own the Warisan Merdeka property and leased it out for recurring profit but we may also consider unlocking the value if the situation warrants it.”

He said PNB had been expanding its portfolio of property assets from mainly investing in equities previously. It had been purchasing commercial properties that offered competitive returns and potential for capital appreciation at reasonable prices.

Today, its property portfolio includes Menara PNB, PNB Darby Park, Kenanga International Building, Bangunan MAS in Kuala Lumpur, Hotel Perdana in Kota Baru and PNB Ilham Resort in Port Dickson. Its first offshore property, Santos Place in Brisbane, Australia, a six-star Green Star building, was acquired in August for A$287mil.

Hamad said PNB was also active in property development through its strategic holdings in a number of companies, including the merged entity of Island & Peninsular Bhd, Petaling Garden Bhd and Pelangi Bhd.

By The Star

SP Setia launches green hub in Shah Alam

SHAH ALAM: SP Setia Bhd's newly launched first integrated green commercial hub in Shah Alam, Setia City, will have a gross development value (GDV) of RM5 billion once completed within the next 10 to 15 years.

President and Chief Executive Officer of SP Setia Bhd, Tan Sri Liew Kee Sin said the 240-acre integrated freehold mixed development, will set a new benchmark where green development is concerned within the Shah Alam skyline.

"It will comprise office towers, hotels, service apartments and a retail mall with all the elements of the concept of live, learn, work and play," he said during the official launch of Setia City today.

"With the confirmation of the building of three Grade A corporate headquarters for SP Setia, Top Glove Corporation and Khind Holdings Bhd, Setia City is now ready to be launched as the first integrated green commercial hub serving the Greater Klang Valley," he added.

He also indicated there are also plans to bring in private universities.

According to Liew, the commercial hub will be one of the largest master-planned city centres in the Klang Valley and carry the SP Setia stamp of lush tropical landscapes featuring parks and gardens, as well as lakes and waterways.

"Setia City will also be the first integrated project to have all the buildings certified under the Green Building Index," he highlighted.

Setia City, he said, has managed to attract international and renowned property player, Lend Lease, headquartered in Australia to jointly invest in the development of a retail centre to be known as Setia City Mall.

"The new mall will form the focal point of Setia City. "The confidence the market has in Setia City Mall has led to the signing of major anchor retailer, Parkson, as well as leading cinema operator Golden Screen Cinemas.

"In addition numerous other specialty retailers have been secured," Liew said.

When complete, the mall he said, will offer a fun and affordable family experience comprising amazing green space, fantastic shops, great food and entertainment.

By Bernama

1M’sia Mall project draws mixed responses

PETALING JAYA: The 1Malaysia Mall project proposed under the Economic Transformation Programme (ETP) has drawn mixed responses from retailers and property consultants.

The plan is part of the Government’s initiative to push Malaysian mall operators and retailers to expand overseas and export Malaysian management expertise.

“It is still too early to determine if 1Malaysia Mall is a viable concept. The whole process will take four to five years from site selection, market research, planning, financing, construction, leasing to completion. I encourage the private sector to work with the Government to establish this mall,” Retail Group Malaysia managing director Tan Hai Hsin said in an e-mail reply to StarBiz queries.

Retail Group Malaysia is an independent retail research firm in Malaysia.

Tan suggested two other strategies to help Malaysian retailers expand overseas.

“First, the Government trade agencies in various Asian countries can assist Malaysian retailers who lack the experience in overseas ventures to find local partners (via joint ventures, licensing or franchises) and to introduce them to first-tier or Grade A shopping mall owners in various Asian countries,” he said.

He said there was such an agency in Singapore called International Enterprise Singapore. “Its office in Kuala Lumpur assists Singapore retailers in finding local Malaysian partners and organising meetings with shopping mall owners in Malaysia,” he said.

Second, he said the Government trade agencies in developed countries could assist Malaysian retailers in penetrating First World countries such as Japan, South Korea, the United States, Australia and Britain.

“These countries have mature retail markets and large populations. It is difficult for our retailers to succeed in these markets on their own without some assistance from our Government,” Tan said.

“Government agencies like Malaysia External Trade Development Corp have many offices around the world. A retail unit could be set up in each of these offices for the above two purposes,” he added. The Government’s plan is that by 2020, there will be 21 1Malaysia Malls in the regional emerging markets, starting with Vietnam and continuing to China.

1Malaysia Mall will house Malaysian retailers and food and beverage operators under one roof to cater for these emerging markets whose population has not been exposed to integrated shopping as retail is dominated by street shopping. CB Richard Ellis (M) Sdn Bhd managing director Allan Soo viewed the idea of 1Malaysia Mall as not being practical.

“Although the idea of opening malls to sell Malaysian merchandise in the region sounds good, I think the flaw is that our merchandise lacks breadth, depth and is not of top grade A positioning nor branding,” he told StarBiz in an e-mail.

“We do not have a lot of shoe brands nor fashion brands for instance, compared with Thailand. To fill a typical mall of 500,000 sq ft, we need at least 200 shops. If all these shops stock Malaysian brands, we will have an issue filling up with a full range of merchandise that is really Malaysian and interesting enough to draw the crowd,” he said.

He also said having so many Malaysian malls overseas might mean tourists need not come to Malaysia to shop. Soo is involved in retail development consultancy and leasing as well as property market research. Meanwhile, the Malaysian Retailer-Chains Association (MRCA) applauded the proposed 1Malaysia Mall as it would give more business opportunities to all involved in the industry.

President Datuk Tay Sim Kim said MRCA as the leading retail-chain association in Malaysia was receptive to having a regional presence for 1Malaysia Mall.

“The 1Malaysia Mall concept will provide the opportunity for retailers, operators and the Government to pool their resources together in leveraging the best business deals for their respective companies,” he told StarBiz in an e-mail. He added that local licensing, rental and other local issues might affect retailers if they were to expand to the regional market on their own.

“1Malaysia Mall would also enlarge retailers’ market penetration and enhance growth, thus bringing back more revenue. MRCA members will continue to strive for excellence in their products and services, making Malaysian brands known abroad,” he said.

By The Star