The Japanese are one of the biggest investors in the Bukit Bintang City Centre (BBCC) development. Their interest and commitment to the project may see more investors jumping on the bandwagon.
Mitsui Fudosan (Asia) Malaysia Sdn Bhd (MFAM) yesterday inked a 51:49 joint-venture (JV) agreement with BBCC Development (BBCCD) Sdn Bhd - the BBCC developer - to form a JV company, MFBBCC Serviced Suites Sdn Bhd.
This is the second agreement between BBCCD and the Japanese firm.
In 2016, the shareholders of BBCCD inked a JV with MFAM to develop The Mitsui Shopping Park Lalaport, an RM1.6 billion retail mall located within the development.
The Mitsui Shopping Park LaLaport is one of Southeast Asia's largest retail spaces. When completed in 2021, the five-story mall will offer 82,600 sq. meters of leasable space.
Eco World Development Group Bhd (EcoWorld Malaysia) chairman Tan Sri Liew Kee Sin said Japan is not only one of Malaysia's top sources of foreign direct investment but has also contributed immensely towards the growth of the country's manufacturing, services, retail, real estate, and banking sectors.
"The signing 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 in a statement issued yesterday.
BBCC, located at the site of the former Pudu Prison along Jalan Hang Tuah, is a JV project between EcoWorld Malaysia, UDA Holdings Bhd, and the Employees Provident Fund.
The 7.85ha project has a gross development value of RM8.7 billion.
MFBBCC will acquire a serviced residence block in Phase 2 of the BBCC for RM242 million. The JV firm will also manage and operate the property including handling tenancies of the residence.
The 44-storey block will have a total of 269 units consisting of one, two, and three-bedroom apartments with built-ups from 532 sq ft to 1,188 sq ft.
The building is expected to be completed by the end of 2023.
The other components of Phase 2 include another residential tower and two commercial towers.
UDA Holdings chairman Datuk Jalaluddin Alias said the en-bloc sale of the serviced residence affirms the project's attractive propositions and potential as the upcoming nucleus of the city centre.
According to him, Phase 1 of the BBCC is well underway and set for its first handover in 2021.
MIDF Research analyst Jessica Low Jze Tieng said the JV between BBCCD and MFAM affirmed the prospects of the development.
She viewed the en bloc deal positively as it would unlock the value of BBCC.
"We think that the partnership with Mitsui Fudosan Asia will help to assure the continued success of the BBCC development," she said in a note today.