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KUALA LUMPUR: Asian Pac Holdings Bhd will venture into property investment with the development of The Mall, a shopping mall that forms part of the RM1.5 billion KK Times Square II in Kota Kinabalu, Sabah. When completed in 2013, The Mall would be the largest mall in the state capital.
KK Times Square II comprises The Mall, 498 luxurious residential suites called ‘The Loft’, and 41 exterior shops.
“Instead of buying land and developing properties to sell them, we will hold the property for long-term investment,” said Asian Pac executive director Chuah Swee Guan, who added that this would be the group's first such project.
Chuah spoke to reporters after the signing ceremony for the RM200 million commercial papers/medium term notes (CP/MTN) between Asian Pac’s subsidiary Syarikat Kapasi Sdn Bhd and the principal advisor and lead arranger, Affin Investment Bank Bhd on Tuesday, June 29.
This fund-raising exercise will enable Kapasi to raise up to RM200 million to part finance the construction and development cost of KK Times Square II, which is estimated to cost RM500 million. Syarikat Kapasi is the first to conclude the issuance of a CP/MTN programme, which is guaranteed by Danajamin Nasional Bhd.
The Mall, which has a gross development value of RM861 million, is modeled after the major shopping malls in Klang Valley and boasts a net lettable area (NLA) of 670,000 sq ft.
According to Allan Soo, managing director of CB Richard Ellis (CBRE), the retail consultant for The Mall, the mix of tenants would be fashion-driven, similar to major shopping malls in city centers.
“Easily 50% of the tenancy will be fashion outlets and we’ll have a mix of lifestyle, entertainment and F & B outlets as well. Basically, it will be a fashion and lifestyle mall,” said Soo.
Retailer Parkson Corporation Sdn Bhd has already committed to a space of 140,000 sq ft, making it the anchor tenant.
Asian Pac is confident that the shopping mall will not only be sustainable but also dominate the market once it opens, despite the lack of large malls in Kota Kinabalu.
According to data released by National Property Information Centre (NAPIC), the shopping centres supply in Kota Kinabalu stands at 352,575 sq meters as of 1Q 2010.
“Almost all malls in Kota Kinabalu are strata-titled which means poor tenant mix planning or control. None are investment-grade nor planned for the long term,” said Soo.
Soo believes that the time is right for a major grade ‘A’ mall to dominate the market and KK Times Square II with its single ownership, a strong fashion led-tenant mix and prime location will fit the bill.
The 15-acre, 9-storey KK Times Square II is the second phase of KK Times Square. Phase 1 consisting of 12 blocks of business suites, shop-offices and retail outlets called Signature Offices was launched in 2004 and is sold out.
Three other projects slated to be launched this year are the RM100 million commercial development project Dataran Larkin in Johor, the RM70 million mixed development project in Dataran Wangsa @ Wangsa Melawati and a RM300 million mixed development project in Kepong.
KK Times Square II comprises The Mall, 498 luxurious residential suites called ‘The Loft’, and 41 exterior shops. “Instead of buying land and developing properties to sell them, we will hold the property for long-term investment,” said Asian Pac executive director Chuah Swee Guan, who added that this would be the group's first such project.
Chuah spoke to reporters after the signing ceremony for the RM200 million commercial papers/medium term notes (CP/MTN) between Asian Pac’s subsidiary Syarikat Kapasi Sdn Bhd and the principal advisor and lead arranger, Affin Investment Bank Bhd on Tuesday, June 29.
This fund-raising exercise will enable Kapasi to raise up to RM200 million to part finance the construction and development cost of KK Times Square II, which is estimated to cost RM500 million. Syarikat Kapasi is the first to conclude the issuance of a CP/MTN programme, which is guaranteed by Danajamin Nasional Bhd.
The Mall, which has a gross development value of RM861 million, is modeled after the major shopping malls in Klang Valley and boasts a net lettable area (NLA) of 670,000 sq ft.
According to Allan Soo, managing director of CB Richard Ellis (CBRE), the retail consultant for The Mall, the mix of tenants would be fashion-driven, similar to major shopping malls in city centers.
“Easily 50% of the tenancy will be fashion outlets and we’ll have a mix of lifestyle, entertainment and F & B outlets as well. Basically, it will be a fashion and lifestyle mall,” said Soo.
Retailer Parkson Corporation Sdn Bhd has already committed to a space of 140,000 sq ft, making it the anchor tenant.
Asian Pac is confident that the shopping mall will not only be sustainable but also dominate the market once it opens, despite the lack of large malls in Kota Kinabalu.
According to data released by National Property Information Centre (NAPIC), the shopping centres supply in Kota Kinabalu stands at 352,575 sq meters as of 1Q 2010.
“Almost all malls in Kota Kinabalu are strata-titled which means poor tenant mix planning or control. None are investment-grade nor planned for the long term,” said Soo.
Soo believes that the time is right for a major grade ‘A’ mall to dominate the market and KK Times Square II with its single ownership, a strong fashion led-tenant mix and prime location will fit the bill.
The 15-acre, 9-storey KK Times Square II is the second phase of KK Times Square. Phase 1 consisting of 12 blocks of business suites, shop-offices and retail outlets called Signature Offices was launched in 2004 and is sold out.
Three other projects slated to be launched this year are the RM100 million commercial development project Dataran Larkin in Johor, the RM70 million mixed development project in Dataran Wangsa @ Wangsa Melawati and a RM300 million mixed development project in Kepong.
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