KUALA LUMPUR (May 9): Sime Darby Property Bhd and CapitaMalls Asia Ltd have entered into a conditional agreement on Wednesday to form a joint venture (JV) to develop a RM500 million shopping mall in Taman Melawati here in the Klang Valley.
The joint venture with a 50:50 ratio will develop the mall on a 242,000 sq ft tract of freehold land with a net lettable area (NLA) of approximately 635,000 sq ft and a development cost of RM500 million. The mall will serve to cater to an area catchment of 800,000 within a 10-minute drive.
The mall is expected to be completed in 2016, and will be located in the centre of the Melawati township, which includes townships such as Taman Melawati, Taman Permata and Kemensah Heights, and is the last sizeable plot of commercial land in the area.
According to Datuk Wahab Maskan, group COO of Sime Darby Bhd and managing director of Sime Darby Property Bhd, said that this joint venture is the best strategy to maximise returns.
"We are confident that our partnership with CapitaMalls Asia to develop this site in Taman Melawati is the best strategy to maximise the returns on our investment and diversify our income portfolio," he said. "The synergistic partnership with CapitaMalls Asia provides us the platform to leverage on their experience as the leading shopping mall developer, owner and manager in Asia."
He added, "When this commercial development is completed, it is expected to be a catalyst to enhance the overall value of properties within its vicinity. This, in turn, bodes well for our current and upcoming property projects in this area."
Lim Beng Chee, CEO of CapitaMalls said that they are pleased to partner Sime Darby Property to jointly develop this site in Taman Melawati.
"CapitaMalls will bring our proven expertise in developing and managing shopping malls around the region," he added. "This project marks our first greenfield development in Malaysia. It will be the first major shopping mall in the established and affluent residential district of Taman Melawati, and will cater to the under-served retail needs of the residents there as well as the surrounding neighbourhoods. It will also provide both Malaysian and international retailers the opportunity to expand their presence to an established residential district in the Klang Valley."
The mall will be CapitaMalls's sixth mall in Malaysia as the company owns Queensbay Mall in Penang and — through its stake in CapitaMalls Malaysia Trust — owns Gurney Plaza also in Penang, a majority interest in Sungei Wang Plaza in Kuala Lumpur, The Mines in Selangor and East Coast Mall in Kuantan.
CapitaMalls is one of the largest listed shopping mall developers, owners and managers in Asia by a total property value of assets and geographic reach with a pan-Asian portfolio of 99 shopping malls across 51 cities in five countries, including Singapore, Malaysia, Japan and India. It's total property value is approximately S$29.5 billion (RM72.1 billion), with a total gross floor area (GFA) of approximately 89.6 million sq ft.
Sime Darby Property is an established integrated property group focused on property development, property investment, hospitality and leisure. Its property arm has a global reach that includes countries like Singapore, Vietnam, China, Australia and United Kingdom.
Sime Darby Property has several on-going as well as future developments in the pipeline in the Melawati township including Gaya Apartments, Casa Rimba (superlink homes), 3 Residen (condominiums), Quarza (service apartments), bungalows, town villas and an office building.