Eco World Development Group Bhd chairman Tan Sri Liew Kee Sin briefs on Bukit Bintang City Centre project. Looking on are Federal Territories Minister Datuk Seri Tengku Adnan Mansor, UDA and BBCC chairman Datuk Dr Mohd Shafei Abdullah [2nd from right] and Kuala Lumpur mayor Datuk Seri Mohd Amin Nordin Abdul Aziz [right].
KUALA LUMPUR: BBCC Development Sdn Bhd has signed a head of terms agreements with Mitsui Fudosan (Asia) Pte Ltd and Zepp Hall Network Inc for the proposed multi-billion ringgit Bukit Bintang City Centre (BBCC).
Eco World Development, which is part of the JV, said on Monday: “With an estimated gross development cost (GDC) of RM1.6bil, the mall will transform the retail landscape in Kuala Lumpur, catering to all shopping needs with the introduction of popular home grown and new-to-market international brands”.
The other JV partners of BBCC to develop the 19.4 acres of into a mixed residential and commercial development include UDA Holdings Bhd and the Employees Provident Fund (EPF).
BBCC signed the head of terms agreements with Mitsui Fudosan and Zepp Hall Network as well as a MoU with The Ascott Ltd.
“The signing with three distinctive world-renowned partners will see the creation of the best retail, entertainment and hospitality brands for the Bukit Bintang City Centre (BBCC) development,” said Eco World.
The agreement also sets out the key commercial terms for the entry into a joint venture between Mitsui Fudosan Asia and the shareholders of BBCC for the development, ownership and operation of the retail mall through the establishment of a joint-venture company (Mall JVCo).
Phase 1 of the project will consist of a 45-storey block of strata offices and two blocks of serviced residences, comprising of 680 units, to begin construction in the third quarter of this year.
Mitsui Fudosan will jointly develop a 1.4 million square feet lifestyle retail mall in BBCC with a gross development cost of RM1.6bil , while Zepp Hall is investing in a live event hall, the first of its kind outside Japan.
The project is expected to start work in the third quarter of this year and will be developed over eight to 10 years.
The Mall JVCo is proposed to be 50% owned by Mitsui Fudosan Asia with the remaining 50% owned by the shareholders of BBCC.
“This substantial investment by Mitsui Fudosan Asia represents the largest retail investment to-date by the Mitsui Fudosan Group outside Japan,” it said.
Eco World said Mitsui Fudosan, with its vast experience in mall design, management and operation skills as well as its relationship with a large network of Japanese and international retailers, would help BBCC realise the best mall design with the best tenant mix and management standards.
Mitsui Fudosan Asia and BBCC plan to develop the retail mall under the Mitsui Shopping Park LaLaport brand which is a regional mall concept first conceived by Mitsui Fudosan slightly over 35 years ago.
The LaLaport concept has evolved over the years from a “place where people gather” to “a place where people interact,” in response to the diverse needs of the communities, it is a part of and the broad array of lifestyles in the cities where the malls are located.
Eco World said the heads of terms provided for an exclusivity period of four months plus one month from March 28, 2016 or such extended period as may be agreed to by the parties for the entry into the definitive agreements.
As for the agreement with Zepp Hall, this will see the development of a live concert hall in BBCC which can hold more than 2,000 audience.
Zepp Hall is a subsidiary of Sony Music Entertainment (Japan) Inc. and its core business is venue operations.
This concert hall located within the Entertainment Block in BBCC is next to the retail mall and is expected to be a top entertainment venue in the region.
The MOU with Ascott, a member of Singapore’s CapitaLand will also bring a global award-winning brand to BBCC.
Ascott is the largest international serviced residence owner-operator in the world with experience in managing over 45,000 units in 290 properties, spanning 100 cities in 27 countries across the Americas, Asia Pacific, Europe and the Gulf Region.