CapitaMalls Asia and Sime Darby to develop shopping mall in Malaysia

The mall will be built on an area of about 242,000 square feet in Taman Melawati, an affluent residential district north-east of Kuala Lumpur.

In a news release, CapitaMalls Asia Limited, Asia’s leading shopping mall developer, owner and manager; and Sime Darby Property, Malaysia’s largest property developer in terms of landbank announced that they have entered into a conditional agreement to form a 50:50 joint venture to develop a shopping mall on a freehold site in Taman Melawati in the Klang Valley, Malaysia.

The site has an area of about 242,000 square feet. It is located in the centre of Melawati township and is the last sizeable plot of commercial land in the township. The township includes Taman Melawati, an established and affluent residential district north-east of Kuala Lumpur city centre and part of the Klang Valley. It is bounded by the established residential areas of Taman Melati, Wangsa Maju, Taman Permata and Kemensah Heights. The site is also near one of the most established international schools in Kuala Lumpur, as well as popular tourist destinations such as Batu Caves and the National Zoo.

CapitaMalls Asia and Sime Darby Property will develop a shopping mall with a total net lettable area of approximately 635,000 sq ft 1 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. The total development cost is expected to be about S$204.5 million.

Mr Lim Beng Chee, CEO of CapitaMalls Asia, said: “We are pleased to partner Sime Darby Property to jointly develop this site in Taman Melawati. Sime Darby Property has extensive experience in property development in Malaysia. On our part, CapitaMalls Asia will bring our proven expertise in developing and managing shopping malls around the region.”

“This project marks our 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.”

Dato’ Wahab Maskan, Group Chief Operating Officer of Sime Darby Berhad and Managing Director of Sime Darby Property, said: “We are confident that our partnership with CapitaMalls Asia to develop this site in Taman Melawati is the best strategy to maximise the returns on our investment and diversify our income portfolio. The synergistic partnership with CapitaMalls Asia provides us the platform to leverage on their experience as the leading shopping mall developer, owner and manager in Asia.”

“When this commercial development is completed, it is expected to be a catalyst to enhance the overall value of properties within its vicinity. This, in turn, bodes well for our current and upcoming property projects in this area,” he added.

Sime Darby Property has several on-going as well as future projects planned in the Melawati township including Gaya Apartments, superlinked homes Casa Rimba, condominium 3 Residen, service apartments Quarza, and other bungalows, town villas and an office building. These projects will help promote Melawati as a commercial hub of the area.

This development will be CapitaMalls Asia’s sixth mall in Malaysia. CapitaMalls Asia 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.