KUALA LUMPUR: Japan's Mitsui Fudosan and BBCC Development Sdn Bhd are buying a block of serviced apartments at the Bukit Bintang City Centre (BBCC) development for RM242 million.
Mitsui Fudosan's unit Mitsui Fudosan (Asia) Malaysia Sdn Bhd (MFAM) and BBCC Development formed a joint venture (JV) company to buy the block.
MFAM will hold 51 per cent and BBCC Development 49 per cent in the JV company, called MFBBCC Serviced Suites Sdn Bhd.
The latter will manage and operate the property including granting of tenancies of units within the property.
BBCC is a joint-venture project between UDA Holdings Bhd, Eco World Development Group Bhd and the Employees Provident Fund Board.
Located on a 19.4-acre site, BBCC is poised to be the new gateway into the Kuala Lumpur golden triangle and future centre of greater Kuala Lumpur.
The serviced residence block is a 44-storey building that will have a total of 269 units of one, two and three-bedroom apartments with built-ups from 532 sq ft to 1,188 sq ft.
The units are from level five onwards while levels two to four will house the carparks and facilities like a swimming pool, yoga deck, gym, library, children play area, business centre and multi-purpose room.
It is part of Phase 2 of BBCC which will also include another residential tower and two blocks of commercial buildings.
The serviced residence block is expected to be completed by the end of 2023.
MFAM managing director Takehito Fukui said its continued partnership with the project's shareholders was a natural progression from its Phase 1 involvement of developing The Mitsui Shopping Park Lalaport retail mall project.
"It has been an exciting journey and we are delighted to be part of BBCC's Phase 2 growth and looking forward to achieving more in years to come," he said.
EcoWorld cchairman Tan Sri Liew Kee Sin said the deal proved the strength and fidelity of the long bilateral ties forged between Malaysia and Japan.
"Japan is not only one of the country's top sources of FDI (foreign direct investment), their contributions towards the growth of our manufacturing, services, retail, real estate and banking sectors have been immense.
"The signing today therefore signifies our partner's continued confidence not only in the BBCC project, but also their belief in Malaysia's long- term growth prospects and the attractiveness of our country as an emerging global destination for real estate investment," he said.
UDA chairman Datuk Jalaluddin Alias said with Phase 1 of BBCC well underway and set for its first handover in 2021, the en-bloc sale of the serviced residence under Phase 2 affirmed the project's attractive propositions and potential as the upcoming nucleus of the city centre.
"The regeneration of this historical site has surpassed expectations in terms of unlocking value and we have our business partners and shareholders to thank for this," he said.
BBCC will have a total gross build-up area of 6.7 million sq ft with a gross development value of RM8.7 billion.
The masterplan comprises a retail mall, an entertainment hub, four blocks of serviced apartments, a lifestyle hotel, three blocks of strata and corporate offices and an 80 storey three-in-one signature tower that will comprise corporate offices, a five-star hotel and luxury residences.