KUALA LUMPUR: BBCC Development Sdn Bhd reached a new milestone today with the signing of Head of Terms Agreements with Mitsui Fudosan (Asia) Pte Ltd and Zepp Hall Network Inc. as well as a Memorandum of Understanding with The Ascott Limited.
The signing with three distinctive world-renowned partners will see the creation of the best retail, entertainment and hospitality brands for the Bukit Bintang City Centre (BBCC) development.
The agreement with Mitsui Fudosan (Asia) Pte Ltd (Mitsui Fudosan Asia) is the culmination of 12 months of intensive collaborative work between BBCC and Mitsui Fudosan Asia to come with detailed design and development concepts which will see a 1.4 million sq ft lifestyle mall rise at the heart of BBCC. 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 agreement also sets out the key commercial terms for the entry into a joint-venture between Mitsui Fudosan Asia and the shareholders of BBCC for the development, ownership and operation of the retail mall through the establishment of a joint-venture company (Mall JVCo). 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.
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, the partnership with Mitsui Fudosan Asia will help BBCC realise the best mall design with the best tenant mix and management standards.
The Mitsui Fudosan Group possesses an in-depth understanding on seamlessly integrating shopping malls within mixed-use developments and connection to public transport hubs, having successfully implemented such concepts in numerous large cities in Japan.
Mitsui Fudosan Asia and BBCC are proposing to develop the retail 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.
The mall at BBCC will feature an adaption of the winning concepts tried and tested by Mitsui Fudosan over several decades to create a regional one-stop destination offering a high degree of satisfaction with exciting stores that fuse experiential consumption and shopping. The well-conceived designs and meticulous detailing further enables the mall to be unified with its local community beyond its buildings and onsite services whilst acting as a catalyst for the continued growth and well-being of the broader community that it serves.
Meanwhile, the agreement with Zepp Hall Network Inc. (Zepp Hall) will see the development of a live concert hall in BBCC which can hold more than 2,000 audience. Zepp Hall is a subsidiary of Sony Music Entertainment (Japan) Inc. (Sony Music) and its core business is venue operations.
This remarkable concert hall located within the Entertainment Block in BBCC is situated next to the retail mall and is expected to be a top entertainment venue in the region. This concert hall to be operated by Zepp Hall is networked with 6 existing concert halls in 5 major cities across Japan which host many international artistes and music legends regularly. Zepp Hall in Kuala Lumpur will be no different offering local music lovers and visitors to the city an unforgettable concert experience in a remarkable live event hall.
The MOU with The Ascott Limited (Ascott), a member of Singapore’s CapitaLand will also bring a global award-winning brand to BBCC. 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.
The event was witnessed by Guest of Honour YB Datuk Seri Utama Tengku Adnan Tengku Mansor, Minister of Federal Territories.
Quote from Mr Akihiko Funaoka, Executive Managing Officer, Mitsui Fudosan Group & Director, Mitsui Fudosan Asia
We believe our partners are the most important element in our business in Malaysia. We are very fortunate to have such experienced partners as UDA Holdings Berhad, Eco World Development Group Berhad and EPF. We will bring together all of our expertise to make this project successful. We truly hope that this project can add something new and entertaining to the lives of the people in Malaysia. We sincerely appreciate the continuous support from all of you here today.
Quote from Dato Dr Mohd Shafei Abdullah, Chairman of UDA Holdings Berhad
We are honoured to welcome our valued partners whom we believe will collectively bring us closer to realising our mutual grand vision for BBCC. More importantly, we can see that Mitsui Fudosan is committing to a long term investment in the joint venture for the retail mall and the proposed Zepp Hall Kuala Lumpur will be their first live concert hall in South East Asia. Â
Quote from Tan Sri Liew Kee Sin, Chairman of Eco World Development Group Berhad
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.
Quote from Satoshi Senoo, President of Zepp Hall Inc.
We are pleased to take this step forward to the next level for both parties to come closer to a long term relationship. We hope we can bring in as many live experiences to the people of Kuala Lumpur and beyond, and become one of the iconic concert halls in the region.
Quote from Mr Lee Chee Koon, Chief Executive Officer of The Ascott Limited
We continue to see strong potential for Ascott to expand in Malaysia as there is rising demand from corporate and leisure travellers for quality accommodation. Since Ascott entered Malaysia in 1999 with our first property in Kuala Lumpur,Â we have grown to be the largest international owner and operator of serviced residences in the country with more than 3,000 apartment units across 14 properties. Over the years, Ascott has built strong operational capabilities and a global network. Through this partnership, we aim to bring our internationally recognised brand of serviced residences to BBCC.
The signing of two partnerships and an MOU brings BBCC closer to realising its visionary master plan. With physical works expected to start by the third quarter of this year, BBCC has begun previewing Phase 1. This includes The Stride strata offices, a 45-storey block catering to small business owners, entrepreneurs and SMEs who need medium size individual office suites that comes with premium grade facilities such as grand lobby, shared meetings and conference facilities and security features.
Also to be included in Phase 1 are two blocks of serviced residences, comprising 680 units of entry level apartments with sizes starting from 450 sq ft upwards. 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.