CapitaMalls Asia and Sime Darby Property begin construction of Melawati Mall located north east of Kuala Lumpur
Singapore, Hong Kong & Kuala Lumpur, 3 October 2013 – CapitaMalls Asia Limited (SGX: JS8 and HKEx: 6813) and Sime Darby Property are pleased to mark a key milestone today by commencing construction of their shopping mall located on prime commercial land in the Taman Melawati commercial area. The shopping mall, named Melawati Mall, is set to become a lifestyle city shopping complex north east of Kuala Lumpur when it is completed in end 2016.
Under a 50:50 joint venture, CapitaMalls Asia and Sime Darby Property are developing Melawati Mall into an eight-storey shopping mall with a net lettable area of about 620,000 square feet (“sq ft”). Positioned as a one-stop retail and lifestyle destination, Melawati Mall aspires to bring the city shopping experience, with its comprehensive and fashionable offerings, to the residents of Melawati township and nearby towns. When it is completed, the mall, fronting the Middle Ring Road 2 (MRR2), will serve an estimated 800,000 people within a 15- minute drive. The total development cost is expected to be about RM670.0 million (S$257.8 million / HK$1,568.3 million).
Present at today’s groundbreaking and construction event for Melawati Mall wereMr Lim Beng Chee, CEO of CapitaMalls Asia; Dato’ Wahab Maskan, Group Chief Operating Officer of Sime Darby Berhad and Managing Director of Sime Darby Property; as well as other senior management members from CapitaMalls Asia and Sime Darby Property.
Mr Lim Beng Chee said, “CapitaMalls Asia currently owns Queensbay Mall in Penang and, through our stake in CapitaMalls Malaysia Trust, also 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. As our sixth mall and first greenfield development in Malaysia, we are pleased to commemorate the commencement of the construction of Melawati Mall today with our partner Sime Darby Property. CapitaMalls Asia will leverage on our expertise in developing and managing shopping malls around the region to create a one-stop retail and lifestyle destination that will enhance the attractiveness of the Melawati township, as well as become the lifestyle centre for residents living north east of Kuala Lumpur.”
“In addition to being strategically located in the established and affluent residential district of Taman Melawati, Melawati Mall is well-served by major highways and is a mere 20-minute drive from the Kuala Lumpur city centre. To cater to the increasingly affluent residents in Taman Melawati and the surrounding neighbourhoods, together with Sime Darby Property we will invest about RM670.0 million to deliver a sophisticated mall that will also become a visible landmark in the area. We are pleased to work with Sime Darby Property on this mall, and our successful partnership provides a foundation for us to explore future collaborations with them.”
Dato’ Wahab said, “The groundbreaking ceremony is a significant milestone that puts us closer to delivering on our commitment to build a lifestyle shopping mall to serve the community in and around the Melawati township.”
“Our collaboration with CapitaMalls Asia to develop Melawati Mall is well in line with Sime Darby Property's strategic direction to participate in joint venture partnerships with reputable companies that can further unlock the value of our landbank and further enhance value from asset management. Moreover, the success of this collaboration may pave the way for other possible future strategic partnerships with CapitaMalls Asia in Malaysia or overseas.”
The 1,200-acre Melawati township is a cluster of precincts that includes Taman Melawati, Wangsa Melawati and Desa Melawati. It also encompasses Taman Melati, Wangsa Maju, Taman Permata and Kemensah Heights in the vicinity. The township is also close to an established Kuala Lumpur international school, as well as popular tourist destinations such as Batu Caves and the National Zoo.
“When Melawati Mall becomes operational at the end of 2016, it is expected to enhance the overall infrastructure of the area as a place to shop and play, and the value of properties within its vicinity. This will augur well for our current and upcoming property projects in this township,” Dato’ Wahab added.