KUALA LUMPUR: The entry of three global investors into Bukit Bintang City Centre (BBCC) will help de-risk the whole project during its 10-year development period, said a top official at Eco World Development Group Bhd.
Project owner BBCC Development Sdn Bhd (BBCCD) yesterday inked a head of terms agreement with Mitsui Fudosan (Asia) Pte Ltd and Zepp Hall Network Inc for the retail and entertainment components of the project.
BBCCD also signed a memorandum of understanding with Singapore’s The Ascott Ltd, which may take over one serviced apartment block in BBCC.
Ascott is the largest international serviced residence owner-operator in the world, with experience in managing more than 45,000 units in 290 properties, spanning 100 cities in 27 countries.
Eco World chairman Tan Sri Liew Kee Sin said the signing of agreements with the three parties meant BBCCD would be able to focus on the development and sale of the products.
“This is a huge project and it involves a lot of financial commitment. By bringing in many partners, we can develop all the components at one go. There is no more delay... We can start the BBCC now,” he told Business Times.
Mitsui and BBCCD will jointly construct a retail mall at a cost of RM1.6 billion. They plan to develop the mall under the Mitsui Shopping Park LaLaport brand, which is a regional mall concept conceived by Mitsui Fudosan more than 35 years ago.
The mall will be Mitsui’s biggest retail investment outside Japan and its second in Malaysia after the Mitsui Premium Outlet in Sepang.
Akihiko Funaoka, executive managing officer of Mitsui Fudosan Group and director of Mitsui Fudosan Asia, said the mall would be operational by early 2021.
He anticipates that it will generate RM1.5 billion in revenue for the joint venture in its first year of operation.
“It will house some of Japan’s top retailers,” he said.
BBCCD was established to redevelop the 7.85ha site of the former Pudu Jail over 10 years at an estimated cost of RM5 billion.
Its shareholders are Uda Holdings Bhd and Eco World, with 40 per cent stake each, and the Employees Provident Fund with the remaining.
BBCC will feature an iconic
80-storey tower encompassing luxury residences, a hotel and offices. It will also have six serviced apartment blocks, offices and another tower encompassing a hotel and residences.
To complement the development, BBCCD is constructing the mall and a four-level entertainment block, which will house a live event hall and a Malaysian Bazaar.
The event hall will be operated by Zepp Hall, a unit of Sony Music Entertainment (Japan) Inc.
BBCCD chief executive officer Datuk Richard Ong said the entertainment block would cost RM400 million to build.
BBCC will be developed in two phases.
Construction is expected to commence in the third quarter of this year, with Phase 1 to be completed in 2021.
“Phase 2 is expected to commence in 2021,” said Ong.