CapitaMalls signs deal with CapitaLand Retail Malaysia Sdn Bhd (CRM) for East Coast Mall in Kuantan

CapitaMalls signs deal with CapitaLand Retail Malaysia Sdn Bhd (CRM) for East Coast Mall in Kuantan

Capitamalls Malaysia Trust has entered into a project management agreement with CapitaLand Retail Malaysia Sdn Bhd (CRM) for the asset enhancement initiative (AEI) works to the East Coast Mall in Kuantan.

AEI works is amounted to RM43.3 million and CRM will receive a fee of 3% of the final contract sum of the works. The related party transaction, expected to be completed by fourth-quarter 2014, this will create additional retail space and enhance the mall’s retail offering.

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The AEI works will include the reconfiguration of space in order to improve the trade mix and sightlines, conversion of car park bays at Level 3 into retail space and the extension of the alfresco area on the ground floor.  

Upcoming launch : Sunway Geo Phase 2, Sunway South Quay by Sunway Group

Sunway Geo Phase 2 by Sunway Group, located at SouthQuay is planning for launch in Q2 2013. It is just next to Sunway Geo Phase 1 and where the South Quay is situated. There are a total of 45 units of 3-storey shopoffices and approximately 300 units flexi suites. It was sold at 9mil - 10mil for intermediate unit and 13mil-20mil for corner units varies according to sizes.

Upcoming launch : Sunway Geo Phase 2, Sunway South Quay by Sunway Group

Land size : 27' x 59' for intermediate unit
Total Unit : 45 units 3/s Shopoffices and 300 units flexi suites
Intermediate unit Selling Price : RM9mil - 10mil
Webpage : http://www.sunwayproperty.com/pd/sunwaygeo_3storey.asp

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Summary details of this project : 

Built-up area : 5600sf - 6500sf for intermediate unit

Tenure : Leasehold

Review :

Location : The project is connected with Malaysia’s First Proposed Elevated Bus Rapid Transit (BRT) – Sunway Line (completing in 2014). This BRT will connect to 2 train stations – Setia Jaya KTM Station and proposed LRT station in USJ. It has direct access from KESAS highway into Sunway South Quay, and easily accessible to all major highways

Design : The facade looks good. Stratified shopoffices , concept similar to Sunway Nexis. This is is a brand new seamless integrated development comprising Retail Shops, Flexi Suites and Residences where people will experience the very best of entertainment, work, and living.

Price : With an approximately 10% higher than Sunway Geo Phase 1, the project will certainly carry the value where it should.

My Notes : 
Location is good, modern and urban design cater to a new generation expectation. Sunway Geo is surrounded by over 7 million sq. ft. of award-winning facilities and amenities offered at Sunway Resort City, Bandar Sunway.

It is surrounded by educational institutions ie. Sunway University, Monash University Sunway campus, Jeffrey Cheah School of Medicines and Health Sciences and Sunway International School; Sunway Medical Centre, Sunway Pyramid and Sunway LagoonTheme Park, Sunway Resort Hotel & Spa are just five-stone away. 

Upcoming Shopping Malls in Klang Valley

We always wonder whether there is an oversupply of shopping malls in Klang Valley. Here are some points to be noted all about shopping malls in Klang Valley. As of Feb 2013, there are currently about 210 shopping centres in Klang Valley. There are millions sq. ft. of lettable area will be ready for tenants in 5 years time.   

There are 6 shopping malls that currently in advance stage and will be completing in these 2 years. What are the six shopping malls that completing in 2013? The six include Nu Sentral in KL Sentral, Cheras Sentral in Cheras, KLIA 2 in Sepang, Encorp Strand Mall in Kota Damansara, D’Pulze in Cyberjaya and Market Hall @ Pudu along Jalan Pudu, commanding more than two million sq ft of nett floor space in total.

Encorp Strand Mall with the philosophy of ‘Anything But Ordinary’. The mall will feature a unique combination of boutique-style shopping with premium brand experience, carefully selected group of tenants for entertainment outlets and a multi-tiered security system.

Phase one of IOI City Mall in Putrajaya is set to be the largest mall in the south of Klang Valley with 1.35 million sq ft of nett lettable area. Upon completion in the fourth quarter of 2014, the mall with contemporary architecture will boast 350 specialty shops and four anchor tenants. IOI City Mall designed by RTKL International will have abundance of natural light and offer a view of the 18-hole Palm Garden golf course. The mall will house 80 food and beverage outlets, popular fashion brands, indoor theme park, cinema, bowling centre and a full-size ice rink.

How many more in the pipeline and what are the net lettable area that we are emphasizing on? Below is a tabulation of upcoming shopping in Greater KL more than 1 million sq. ft. : -

Item	Shopping Mall & Location	Net lettable aea
1	KL Metropolis Matrade Retail	11.4mil
2	IOI City Mall, Putrajaya	2mil
3	Boustead Retail Cochrane & IKEA	1.2mil
4	Subang Jaya City Centre	1.2mil
5	Empire City Thematic Malls	1mil
6	PJ Sentral Garden mall & Inddor SKI Area	1mil
7	I-city Mall with Central Group	1mil
8	The Paradigm OUG Shopping Centre	1mil
9	Jalil City Mall	1mil
10	Tropicana Metropark Mall	1mil
11	Tropicana Gardens Mall	1mil
12	Icon City PJ Shopping Mall	1mil

Check out the subsequent updates for more detail on this.

Rubber Research Institute of Malaysia (RRIM)

The redevelopment of the Rubber Research Institute of Malaysia (RRIM) land is part of the greater Kuala Lumpur Strategic Development initiative, under 10^th Malaysia Plan.

Rubber Research Institute of Malaysia (RRIM)

It is in the news that the prequalification process for bids of Rubber Research Institute of Malaysia (RRIM) land in Sungai Buloh, Selangor will start by end of this year. EPF will call for the prequalification bids as soon as it gets the government’s nod for the proposed development of the land. Developers who meet the requirements of financing, expertise, reputation and innovation will be considered.

EPF (Kwasa Land Sdn. Bhd., EPF’s wholly owned unit) is the landowner and master developer of the project. EPF bought 890 hectares of the total 1,215 hectares supply from Federal Government for over RM2bil. EPF will then carve the land out into 20 hectares to 200 hectares each parcel. The balance of Rubber Research Institute of Malaysia (RRIM) land is for :

• Malaysian Rubber Board hub (217 hectares)
• My Rapid Transit (MRT) Sungai Buloh depot (72 hectares)

The latest news as published in Star last week, Dijaya Corp Bhd is talking with EPF on jointly developed certain parcels of Rubber Research Institute of Malaysia (RRIM) land in Sungai Buloh. Rubber Research Institute of Malaysia (RRIM) land begins from My Rapid Transit (MRT) Sungai Buloh depot in the Northern portion and end with the Southern portion bordering the Tropicana Gold & Country Resort, a development by Dijaya. In order to have an access directly to Petaling Jaya, an access road through Tropicana Golf Resort is required. As such, Dijaya is currently in the midst of preparing an amalgamation deal. Dijaya in April already entered into agreements with several vendors for a proposed acquisition of 73 properties, comprising 49 parcels of land and 16 buildings for RM949.9mil.

Rubber Research Institute of Malaysia (RRIM)

IGB Corporation (Shopping Malls)

If you have heard of Mid Valley Megamall and The Gardens Mall, of course you will link it to IGB Corporation. IGB Corporation (IGB) is the country's leading landlord with valuable portfolio of prime investment properties.

What are under the portfolio of IGB Corporation?
 They own development properties and investment properties (2.6mil sq.ft retail, 2.2 mil sf office and hotels).

IGB Corporation
This is a blue chip developer / landlord with an impeccable execution track record in creating value for its landbank. Mid Valley Megamall and The Gardens Mall are held under KrisAssets Bhd., while the office and hotel assets are housed under IGB Corporation. Mid Valley is an integrated mixed-use development comprising retail, office, residential and hospitality properties, built on a 50-acre piece of prime land.

Market Value of Mid Valley Megamall and The Gardens Mall
According to the AmResearch Sdn. Bhd, 6 Jan 2012, The total market value of these 2 malls are RM4bil @ RM1,538psf.

• Mid Valley Megamall with the NLA of 1.65mil sf, is the crown in the jewel, consistently having 100% occupanycy with the average rental of RM10psf, reflecting the NOI of RM170mil to RM200mil a year.
• The Gardens Mall 834ksf, having the occupancy of 98% at the rental of RM9.50psf.

Net Book Value of Mid Valley Megamall and The Gardens Mall
According to the AmResearch Sdn. Bhd, 6 Jan 2012, The total net book value of these 2 malls are RM2.82bil

We could see there is a strong traffic growth on these 2 retail malls when the KL Eco City are ready. The RM6bil KL Eco City would definitely provide further catalysts for the retail market in Mid Valley City.

A summary on other assets of IGB will be provided in next article.