“To date, we have achieved 90% sign-up. When we open in December, we should be achieving an 80% shop opening rate,” Chan told TheEdgeProperty.com.
Sunway Velocity Mall is part of the 23-acre Sunway Velocity integrated development comprising residential, commercial, healthcare and retail components. The RM4.5 billion development is located near Cheras, about 3km away from the Kuala Lumpur city centre.
The mall has a gross floor area (GFA) of 1.5 million sq ft and a net lettable area (NLA) of 1 million sq ft.
According to Chan, there will be 12 key tenants occupying 40% of the NLA of which three are anchor tenants and nine are mini anchor tenants.
The mall’s key partners include:
- AEON MaxValu Prime,
- TGV Cinemas (with IMAX),
- Padini Concept Store,
- JD Sports,
- Harvey Norman,
- CHi-X Fitness,
- Home’s Harmony,
- Popular Bookstore,
- Toys “R” US, and
- Grand Imperial Restaurant.
“AEON MaxValu Prime will be a new concept store by AEON and the one at Sunway Velocity Mall will be the third in the world after Japan and Hong Kong.
“On top of that, TGV Cinemas will be opening its fifth IMAX cinema, offering what is expected to be the biggest IMAX screen in Peninsular Malaysia. The third CHi-X Fitness, a sister brand to the existing CHi Fitness clubs — a leading home-grown fitness chain in Malaysia, will also be here,” said Chan.
“There are many high-end supermarkets but we differentiate ourselves by embodying the AEON DNA, bringing in in-house brands and imported Japanese-made products,” AEON MaxValu general manager Toshiniro Ozawa told TheEdgeProperty.com, adding that the group expects 2,000 paying customers daily which is 10% of the projected shopping mall’s crowd.
Ozawa added that AEON MaxValu’s expansion plan is to open three new stores next year and it has identified a few other prime locations within the Klang Valley.
Meanwhile, CHi-X Fitness Sunway Velocity Club general manager Low Kang Sheng highlighted that their latest addition at Sunway Velocity will feature upgraded versions of their existing CHi-X Nexus Bangsar South and CHi-X Da:Men USJ’s GRID functional training zones and Power House main studios.
“We expect a great response from the local community just as our CHi-X Nexus Bangsar South did and I believe existing fitness goers as well as newcomers will find our CHi-X experience fun, refreshing and affordable,” Low added.
Sunway has invested some RM500 million to improve the infrastructure surrounding the development as well as to build more than 6,500 car park bays.
On whether there are too many malls being developed, Chan noted there will be enough demand by Malaysians for the new tenants and shops in Sunway Velocity Mall.
“If you look at the Cheras market today, there is a void in terms of a world-class mall, carefully integrated developments and a mass cluster of retail brand offerings covering fashion, leisure and entertainment, and food and beverage. There are easily more than 100 tamans in Cheras itself and I think Cheras is underserved despite the largely affluent urbane market,” said Chan.
Chan stressed that Sunway is not just a shopping mall developer but a lifestyle community developer.
“You know, when I first started out in this industry some 33 years back, the F&B section constituted less than 5% of a mall. Today, they take up more than 30% of space in the mall. Not only that, the leisure and entertainment section has hit more than half of the mall space. So, I wouldn’t call it a shopping mall anymore. It is a lifestyle mall, whereby people are coming for the experience and that is what we want to give them,” said Chan.
“What is important in this current market is that we continue to meet the needs of our customers. It is not about what Sunway wants, but what the market wants today. We also want to make sure our tenants continue to trade profitably and sustainably,” Chan concluded.
Chan, who is also adviser to the Malaysia Shopping Malls Association, said existing malls in Cheras, such as AEON Maluri Shopping Centre and Cheras Leisure Mall, are still operating successfully after all these years.
Sunway Velocity Mall is a joint venture between Sunway City Sdn Bhd and Fawanis Sdn Bhd.
Property developer Sunway Bhd has introduced Sunway Velocity in Cheras as the first integrated development in its vicinity, dubbed “The City of Endless Possibilities”.
When completed, the entire development will be equipped with residences, offices and shops, hotel, medical centre and shopping mall, with sprawling public spaces.
Around 47% of the total gross development value (GDV) of the entire RM4 billion development will be owned and operated by Sunway Bhd, making Sunway Bhd the largest investor in Sunway Velocity.
First launched in 2011, Phase 1 of the residences was fully sold and completed in December 2014 and handed over to buyers. The remaining commercial and residential components are expected to be completed in phases by 2018.
The initial portion of the shop and office units was completed and fully sold in September 2014.
According to several news reports, about 50 malls would be entering the market in greater Kuala Lumpur by 2020, of which a dozen would have an NLA of 1 million sq ft.
One of its closest competitors will be MyTOWN Shopping Centre. With a net lettable area of 1.1 million sq ft and just 800 m away, this shopping centre will be opening its doors next year.
Despite concerns that the Klang Valley is facing oversupply issues, especially in retail space, Chan said Sunway Velocity Mall would not only compete, but also complement its soon-to-be-launched rival, MyTOWN Shopping Centre.
“Competition is healthy, but in the longer term, we will complement each other. Just look at the Bukit Bintang area and the number of malls there. It’s thriving because it gives consumers choice.”
In time, Chan said the collection of retail space comprising Sunway Velocity Mall, MyTOWN Shopping Centre, IKEA Cheras, AEON Maluri Shopping Centre and the Tun Razak Exchange (TRX) Lifestyle Quarter development would turn Cheras into another vibrant shopping haven – just like Bukit Bintang.
“All of the malls in Cheras, by the time they are completed, will have retail space of close to four million sq feet. In the coming years, it will be a new shopping precinct.”
News Source: The Edge Property, 23 October 2016