KUALA LUMPUR (May 9): Sime Darby Property Bhd and CapitaMalls Asia Ltd will jointly develop a RM500 million shopping mall in Taman Melawati in the Klang Valley.
In a joint statement Wednesday, the two companies said they had entered into a conditional agreement to form a 50:50 joint venture to develop the mall on a freehold site in Taman Melawati.
The two companies said the site had an area of about 242,000 sq ft.
"It is located in the centre of Melawati Township and is the last sizeable plot of commercial land in the township," they said.
CapitaMalls and Sime Darby Property said the shopping mall would have a a total net lettable area of about 635,000 sq feet on the site.
"The shopping mall is expected to be completed in 2016, and will serve a catchment population of around 800,000 people within a 10-minute drive," they said.
Sime Darby Bhd group chief operating officer Datuk Wahab Maskan, who is also managing director of Sime Darby Property, said the conglomerate was confident that its partnership with CapitaMalls to develop this site in Taman Melawati was the best strategy to maximise the returns on its investment and diversify its income portfolio.
“The synergistic partnership with CapitaMalls provides us the platform to leverage on their experience as the leading shopping mall developer, owner and manager in Asia,” he said.
CapitaMalls chief executive officer Lim Beng Chee said the project marked its 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,” he said.
He said this development would be CapitaMalls’s sixth mall in Malaysia.
CapitaMalls currently owns Queensbay Mall in Penang and — through its stake in CapitaMalls Malaysia Trust — owns Gurney Plaza in Penang, a majority interest in Sungei Wang Plaza in Kuala Lumpur, The Mines in Selangor and East Coast Mall in Kuantan.