By Sharen Kaur
Published in NST on April 4, 2016
IT can be a challenge to sell development projects located on former prison sites, especially if they are residential units.
It's hard to imagine why any developer would want to take the risk. It can be a taboo to some Asians, too.
But BBCC Development Sdn Bhd (BBCCD) is redeveloping the site of the former Pudu Prison. Phase 1 of the mega development is expected to be launched in June.
The Pudu Prison was built in phases by the British colonial government between 1891 and 1895. After 101 years, it was formally closed in 1996. In 2012, the prison complex was demolished, leaving only the main gate standing.
BBCCD was established to redevelop the 7.85ha site. It obtained the development order for the Bukit Bintang City Centre (BBCC) project in July last year.
Based on current estimates, it would be developed over 10 years at a cost of RM5 billion and generate a gross development value of RM8.7 billion.
The shareholders of BBCCD are UDA Holdings Bhd and Eco World Development Group Bhd with a 40 per cent stake each, and the Employees Provident Fund (EPF) with the rest.
BBCCD was very bullish on the project and believed that it would attract a lot of property buyers and investments from overseas, said chief executive officer Datuk Richard Ong.
With Eco World in the picture, the project is expected to garner much interest from both local and foreign investors as well as property buyers. Long queues are expected during the launches.
The key person in Eco World is its chairman Tan Sri Liew Kee Sin, who helped put Malaysia on the London property map through the iconic Battersea Power Station project.
BBCCD has so far inked three very important agreements with investors from Japan and Singapore.
The company last week signed head of terms agreements with Mitsui Fudosan (Asia) Pte Ltd and Zepp Hall Network Inc for the retail and entertainment components of the BBCC project.
It also signed a memorandum of understanding with Singapore's The Ascott Ltd, which may take over one serviced apartment block in the project.
Liew said the entry of the three global investors would de-risk the whole project during its 10-year development period.
He said BBCCD would now be able to focus on developing and selling the products.
"This is a huge project and it involves a lot of financial commitment. By bringing in so many partners we can develop all the components in one go. There is no more delay... there is no more holding back. We can start now," he said.
Mitsui, together with BBCCD, will jointly construct a 1.4 million sq ft retail mall at a cost of RM1.6 billion.
The two firms plan to develop the mall under the Mitsui Shopping Park LaLaport brand, which is a regional mall concept first conceived by Mitsui Fudosan slightly over 35 years ago.
This would be the largest retail investment by Mistui outside of Japan, and also the second investment for the company in Malaysia. It had previously invested in Mitsui Outlet Park in Sepang that opened in May last year.
Akihiko Funaoka, executive managing officer of Mitsui Fudosan Group and director of Mitsui Fudosan Asia, said the mall, expected to have 300 outlets, would be operational by early 2021.
It is expected to generate around RM1.5 billion in revenues for the joint venture (Mitsui and BBCCD, via Mall JVCo).
He said the mall would house some of Japan's top retailers.
The BBCC project will feature an iconic 80-storey tower encompassing luxury residences on the upper floors, a five-star hotel in the middle level, and offices at the lower floors.
It will also have six serviced apartment blocks ranging from 38 to 58 floors, a 45-storey building with strata offices, and another tower encompassing a four-star 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, over two floors each.
The event hall, with 2,000-seating capacity, will be operated by Zepp Hall, a unit of Sony Music Entertainment (Japan) Inc.
Published in NST on April 4, 2016
IT can be a challenge to sell development projects located on former prison sites, especially if they are residential units.
It's hard to imagine why any developer would want to take the risk. It can be a taboo to some Asians, too.
But BBCC Development Sdn Bhd (BBCCD) is redeveloping the site of the former Pudu Prison. Phase 1 of the mega development is expected to be launched in June.
The Pudu Prison was built in phases by the British colonial government between 1891 and 1895. After 101 years, it was formally closed in 1996. In 2012, the prison complex was demolished, leaving only the main gate standing.
BBCCD was established to redevelop the 7.85ha site. It obtained the development order for the Bukit Bintang City Centre (BBCC) project in July last year.
Based on current estimates, it would be developed over 10 years at a cost of RM5 billion and generate a gross development value of RM8.7 billion.
The shareholders of BBCCD are UDA Holdings Bhd and Eco World Development Group Bhd with a 40 per cent stake each, and the Employees Provident Fund (EPF) with the rest.
BBCCD was very bullish on the project and believed that it would attract a lot of property buyers and investments from overseas, said chief executive officer Datuk Richard Ong.
With Eco World in the picture, the project is expected to garner much interest from both local and foreign investors as well as property buyers. Long queues are expected during the launches.
The key person in Eco World is its chairman Tan Sri Liew Kee Sin, who helped put Malaysia on the London property map through the iconic Battersea Power Station project.
BBCCD has so far inked three very important agreements with investors from Japan and Singapore.
The company last week signed head of terms agreements with Mitsui Fudosan (Asia) Pte Ltd and Zepp Hall Network Inc for the retail and entertainment components of the BBCC project.
It also signed a memorandum of understanding with Singapore's The Ascott Ltd, which may take over one serviced apartment block in the project.
Liew said the entry of the three global investors would de-risk the whole project during its 10-year development period.
He said BBCCD would now be able to focus on developing and selling the products.
"This is a huge project and it involves a lot of financial commitment. By bringing in so many partners we can develop all the components in one go. There is no more delay... there is no more holding back. We can start now," he said.
Mitsui, together with BBCCD, will jointly construct a 1.4 million sq ft retail mall at a cost of RM1.6 billion.
The two firms plan to develop the mall under the Mitsui Shopping Park LaLaport brand, which is a regional mall concept first conceived by Mitsui Fudosan slightly over 35 years ago.
This would be the largest retail investment by Mistui outside of Japan, and also the second investment for the company in Malaysia. It had previously invested in Mitsui Outlet Park in Sepang that opened in May last year.
Akihiko Funaoka, executive managing officer of Mitsui Fudosan Group and director of Mitsui Fudosan Asia, said the mall, expected to have 300 outlets, would be operational by early 2021.
It is expected to generate around RM1.5 billion in revenues for the joint venture (Mitsui and BBCCD, via Mall JVCo).
He said the mall would house some of Japan's top retailers.
The BBCC project will feature an iconic 80-storey tower encompassing luxury residences on the upper floors, a five-star hotel in the middle level, and offices at the lower floors.
It will also have six serviced apartment blocks ranging from 38 to 58 floors, a 45-storey building with strata offices, and another tower encompassing a four-star 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, over two floors each.
The event hall, with 2,000-seating capacity, will be operated by Zepp Hall, a unit of Sony Music Entertainment (Japan) Inc.
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