Friday, March 8, 2013

Today's Pick (05/03/13/33/958) New-look Jaya Shopping Centre to open by year-end


New-look Jaya Shopping Centre to open by year-end

JAYA Section Fourteen Sdn Bhd is investing RM400 million to redevelop the old Jaya Shopping Centre in Section 14, Petaling Jaya, into an iconic lifestyle mall.

The company, controlled by a group of local and Arab institutional investors and sovereign wealth funds, is using equity and debt to finance the redevelopment, its director Ismail Ani Arope said.

The new seven-storey building will be double the size of the previous mall. It will offer 270,000 sq ft of retail space, with room for 150 retailers.

The mall will be operational in the fourth quarter of this year. So far, 50 per cent of the mall is developed and the entire building will be completed by September or October, Ismail said.
It will be managed by real-estate fund management company CIMB Mapletree Management Sdn Bhd - a 60:40 joint venture between CIMB Group and Singapore's Mapletree Investments Pte Ltd.

CIMB-Mapletree Real Estate Fund 1 (CMREF 1), managed by CIMB Mapletree Management, acquired the old Jaya Shopping Centre for RM110 million in February 2006.

CMREF 1 is a RM2 billion closed-end real-estate fund with a diversified local and foreign institutional investor base.

According to Ismail, at least 30 per cent of the original tenants at Jaya Shopping Centre will return to the new premises.

They include retailers like Heng's Watch, DE Touch Jewellery, Guardian Pharmacy and Benchmark Alliance.

Yesterday, the company inked agreements with 12 new anchor and key tenants, who include TGV, CIMB Bank, Chilli's Grill & Bar, Bata, Kenny Rogers, Chapter One Bookstore and Original Classics.

"As a new mall, we want to have a good tenant mix and stabilise the rent. The new rates are between RM7.00 per sq ft (psf) and RM20.00 psf, as compared with RM5.00 psf to RM12.00 psf previously.

"In terms of recouping our investments, the asset will provide attractive annual income with good capital increment," Ismail said.

Some 60 per cent or 80 retail lots have been snapped up and he expects full occupancy by the end of this year.
 
Source : Business Times

Date : 5 March 2013 


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