Eco World Development Group Bhd, which is part of the JV with a 40% stake, said on Monday: “With an estimated gross development cost (GDC) of RM1.6 billion, the mall will transform the retail landscape in Kuala Lumpur, catering to all shopping needs with the introduction of popular home grown and new-to-market international brands”.
The other JV partners of BBCC to develop the 19.4 acres of into a mixed residential and commercial development include landowner, UDA Holdings Bhd with a 40% stake, and the Employees Provident Fund (EPF) with the remaining 20% stake.
BBCC Development signed the Head of Terms Agreements with Mitsui Fudosan and Zepp Hall Network as well as a Memorandum of Understanding (MoU) with Singapore-headquartered The Ascott Limited.
The signing of the two partnerships and an MoU brings BBCC closer to realising its visionary masterplan.
The masterplan is designed by US-based The Jerde Partnership who pioneered the global concept of ‘placemaking’, and it is envisioned to be a world-class, first-tier iconic development in the heart of Kuala Lumpur’s shopping district of Bukit Bintang. GDP Architects is the local partnering architect.
“The signing with three distinctive world-renowned partners will see the creation of the best retail, entertainment and hospitality brands for the BBCC development,” said Eco World.
The agreement also sets out the key commercial terms for the entry into a JV between Mitsui Fudosan Asia and the shareholders of BBCC for the development, ownership and operation of the retail mall through the establishment of a JV company (Mall JVCo).
Mitsui Fudosan will jointly develop a lifestyle shopping mall in BBCC with a gross floor area (GFA) of 1,349,950 sq ft and with a total GDC of RM1.6 billion, while Zepp Hall is investing in a live concert and event hall, the first-of-its-kind outside Japan, with a GDC of RM400 million.
These projects are expected to start work in the third quarter of this year and the entire BBCC development masterplan will be developed over 8 to 10 years.
The Mall JVCo is proposed to be 50% owned by Mitsui Fudosan Asia with the remaining 50% owned by the shareholders of BBCC.
“This substantial investment by Mitsui Fudosan Asia represents the largest retail investment to-date by the Mitsui Fudosan Group outside Japan,” it said.
“The signing of the Head of Terms Agreements and MoU goes beyond BBCC. Mitsui Fudosan’s investment in the Mall JVCo will be its largest retail investment outside Japan. This signifies its confidence in the continued growth of the Malaysian economy. It is also a testament that Malaysia remains an attractive destination for international foreign direct investment and reaffirms the fact that there is a positive future outlook for the country,” said Tan Sri Liew Kee Sin, chairman of Eco World.
“Despite the slowdown of China’s economy and the weakened ringgit, we believe that the personal consumption of Malaysians is still very high with the higher number of young people,” Mitsui Fudosan Asia managing director Takehito Fukui told TheEdgeProperty.com on the sidelines of the event.
“2015 saw a 5% growth rate in Malaysia’s gross domestic product (GDP), and we foresee a higher economic growth in Malaysia in the near future,” he added.
According to Takehito, the Group also believes Malaysia is the right place to invest due to its great location and the encouraging response to its factory outlet mall, Mitsui Outlet Park, near Kuala Lumpur International Airport (KLIA) in Sepang.
Eco World said Mitsui Fudosan, with its vast experience in mall design, management and operation skills as well as its relationship with a large network of Japanese and international retailers, would help BBCC realise the best mall design with the best tenant mix and management standards.
Mitsui Fudosan Asia and BBCC plan to develop the shopping mall under the Mitsui Shopping Park LaLaport brand which is a regional mall concept first conceived by Mitsui Fudosan slightly over 35 years ago.
The LaLaport concept has evolved over the years from a “place where people gather” to “a place where people interact,” in response to the diverse needs of the communities, it is a part of and the broad array of lifestyles in the cities where the malls are located.
According to a news report, Mitsui Fudosan plans to draw about 300 businesses to the new facility, among them restaurants, household goods stores and fashion retailers. Tenants focusing on middle-income consumers, including Japanese businesses gaining popularity in Malaysia, will be solicited.
The BBCC mall will have a total of 9 levels of retail, as it boast 5 above-ground floors and 4 underground floors. A majority area of the mall is targeted to complete before the end of 2021.
Its retail space will likely be close to the major Mitsui Shopping Park LaLaport Tokyo-Bay in Chiba Prefecture. It has tenants such as Akachan Honpo, American Eagle Outfitters, Anna Sui, B:Ming Life Store by Beams, Beauty & Youth United Arrows, Ciaopanic, Coach, Coen General Store, FANCL, Forever 21, GAP, Gostar de Fuga, H&M, Hollister, Lacoste, Lowrys Farm, Mango, Michael Kors, Muji, Nano Universe, Orihica, Share Park, Stradivarius, Takeo Kikuchi, The Suit Company, Tokyu Hands, Uniqlo, Urban Research Store, Zara and Zara Home.
Last year, in a collaboration with Malaysia Airports Holdings Bhd, Mitsui Fudosan opened Southeast Asia’s first Mitsui Outlet Park in Sepang where tenants catering to middle-income consumers have fared well, and sales have beaten initial expectations. An expansion is now planned, driven by popular demand.
Mitsui Fudosan Group is a Japanese real estate conglomerate involved in the development of housing properties, office buildings, shopping centres, hotels, sport and leisure facilities and resort facilities.
The Group’s retail estate division currently manages 110 retail properties in Japan and abroad with a combined floor space of over 48.4 million sq ft covering various retail concepts, notably Mitsui Shopping Parks under the LaLaport brand, Mitsui Shopping Park Urban and Mitsui Outlet Parks amongst others.
Eco World said the Heads of Terms Agreements provided for an exclusivity period of four months plus one month from 28 March 2016 or such extended period as may be agreed to by the parties for the entry into the definitive agreements.
As for the agreement with Zepp Hall, this will see the development of a live concert and event hall in BBCC which can hold over 2,700 audience.
Zepp Hall is a subsidiary of music powerhouse Sony Music Entertainment (Japan) Inc. and its core business is venue operations.
Zepp currently has 6 concert halls spread across Japan. A unified ‘Zepp’ standard in audio and visual technology ensures high sound quality and lighting effects that delivers unforgettable concert experiences.
This concert hall located within the Entertainment Block in BBCC is next to the retail mall and is expected to be a top entertainment venue in the Southeast Asia region.
The MoU with Ascott, a member of Singapore’s CapitaLand Limited, one of the Asia’s largest property developer and real estate owners, will also bring a global award-winning brand to BBCC. Subject to further details, it is believed that Ascott will manage a business-class hotel-cum-branded residences under one single block.
Ascott is the largest international serviced residence owner-operator in the world with experience in managing over 45,000 units in 290 properties, spanning 100 cities in 27 countries across the Americas, Asia Pacific, Europe and the Gulf Region.
*** *** ***
Besides the mall, the event hall and the hotel residences, Phase 1 of BBCC will also consist of a 45-storey block of strata offices and two blocks of serviced residences. Physical works for the entire Phase 1 are expected to start by the third quarter of this year.
BBCC Development held its private preview for The Stride Strata Office over the weekend. Housed in a sleek 45-storey tower located next to the hotel residence, the approximately 350 units of strata offices have sizes starting from 917 sq ft to 1,152 sq ft, with an indicative pricing of RM1,400 to RM1,600 psf.
The offices are catering to small business owners, entrepreneurs and SMEs who need medium size individual office suites that comes with premium ‘Grade A’ facilities such as grand lobby, shared meetings and conference facilities and security features.
The two blocks of serviced residences comprised of 680 units of entry level apartments with sizes starting from 450 sq ft to 850 sq ft. On a typical floor, there will be a total of 10 units per floor served by 4 passenger high-speed lifts and one service lift.
These smaller units are ideal for singles and young urbanite families who prefer a vibrant city lifestyle with conveniences such as public transport connectivity, work, shopping and entertainment right at their doorsteps.
Both blocks will be linked at the rooftop of the lower block to the midway-level of the higher block, offering stunning views of KLCC/Golden Triangle and the Bukit Bintang district.
The official launch of the Phase 1 serviced residences are slated for June or July.
According to a personnel from BBCC Development, the Phase 1 serviced residences will be priced indicatively at RM1,650 psf.
Prospective buyers may register their interest at BBCC’s sales gallery at Jalan Hang Tuah.
*** *** ***
Built on the former Pudu Jalil site, the total gross development value (GDV) for the 19.4-acre BBCC development is estimated at RM8.7 billion and the entire project will have a total gross build-up area of 6.7 million sq ft.
The planning approval for this project which was obtained in August 2015 comprises 6 blocks of serviced residences, a retail and entertainment block, a 4-star hotel with branded residences, a strata office and an 80 storey 3-in-1 signature tower housing a 5-star international luxury hotel, signature luxury residences and corporate offices.
A new transit hub will provide direct access to the existing Hang Tuah LRT and Monorail stations and the upcoming nearby MRT station at Merdeka PNB 118.
Bukit Bintang City Centre
Total Phases : 2 Developer : BBCC Development Sdn Bhd (a joint-venture between UDA Holdings Bhd, Eco World Development Group Bhd, and the Employees Provident Fund) Location : Jalan Hang Tuah Masterplan : Integrated Mixed Development Components : Phase 1:- (1) Shopping Mall and Entertainment Hub – Jointly developed and managed by Japan’s Mitsui Fudosan – Zepp Hall Kuala Lumpur, a Live Concert Hall to be operated by Sony Music – 10-hall cineplex complex – Banquet hall of 2,000-capacity – A unique ‘Malaysia Grand Bazaar’ and alfresco ‘Lifestyle Street’ with outdoor shopping – Rooftop Park and gardens above the mall – ‘Transit Hub’ for public transport (LRT/Monorail), pedestrian connectors and bridge to Merdeka MRT Station (2) ‘Grade-A’ Strata-titled Commercial – The Stride Strata Office (45 storeys) (3) 4-star Hotel and Branded Residences – The Ascott Bukit Bintang City Centre (36 storeys) (4) 2 blocks of Service Apartment – Tower 1 (53 storeys / 394 units) – Tower 2 (40 storeys / 274 units) Phase 2:- (5) 4 blocks of Service Apartment (6) An 80-storey mixed use Signature Tower – 4 levels of Retail and Restaurants – 24 levels of Corporate Office – 18 levels of 5-star International Hotel – 33 levels of Signature Residences Land Area : 19.4 acres Tenure : Leasehold 99 years Commencement : Q3 2016 Completion : 2021
Click to open image!Click to open image! Click to open image!Click to open image! Click to open image!Click to open image! Click to open image!Click to open image! Click to open image!Click to open image! Click to open image!Click to open image! Click to open image!Click to open image! Click to open image!Click to open image! Click to open image!Click to open image!
View the embedded image gallery online at:
Images courtesy of BBCC Development Sdn Bhd.