KUALA LUMPUR: BBCC Development Sdn Bhd has signed a head of terms agreement with Mitsui Fudosan (Asia) Pte Ltd, that proposes Mitsui Fudosan take up a 50% stake in the 1.4 million sq ft RM1.6 billion development cost lifestyle retail mall in the Bukit Bintang City Centre project.
Mitsui Fudosan (Asia) is a unit of Mitsui Fudosan Group, a Japanese real estate conglomerate involved in the development of housing properties, office buildings, shopping centers, hotels, sport and leisure facilities, and resort facilities.
Under the agreement, both parties will establish a joint-venture company, namely Mall JVCo, with the balance 50% stake being owned by shareholders of BBCC, including Eco World Development Group Bhd, Uda Holdings Bhd and Employees Provident Fund (EPF).
“The mall construction is anticipated to begin early next year, but we would be commencing the first phase of the project towards the third quarter of this year,” BBCC CEO Datuk Richard Ong told reporters after the signing ceremony yesterday.
He said the first phase of the BBCC project will comprise a 45-storey block of strata offices and two blocks of serviced residences, consisting of 680 units.
“Because this is a large project, we will start off with other infrastructure work. Once that is in progress, then the mall (construction works) will come in,” he added, saying that the mall is expected to be completed by early 2021.
Ong said 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 over 35 years ago.
In a filing with Bursa Malaysia yesterday, Eco World said the RM1.6 billion development cost was arrived at following the base price of RM350 per sq ft, estimated cost of the mall construction and the purchase price of the retail podium, which is estimated at RM35 million.
Eco World said the development cost of the mall will be borne by Mall JVCo, of which the group’s stake in the JV company is proposed at 12%.
BBCC also had signed a similar agreement with Zepp Hall Network Inc for the setting up of a live concert hall that can hold more than 2,000 spectators.
“This remarkable concert hall located within the entertainment block in BBCC is situated next to the retail mall and is expected to be a top entertainment venue in the region,” said Ong.
Meanwhile, the third signing was a memorandum of understanding (MoU) with The Ascott Ltd, the largest international serviced residence owner-operator in the world with experience in managing over 45,000 units in 290 properties.
BBCC is a mixed development project comprising a mall, an entertainment block, strata offices, an office tower, two hotels, serviced residences and serviced apartments. The project will be built on 19.4ha at the former Pudu Jail site and is expected to take eight to 10 years to be completed.
BBCC Development is a special purpose vehicle (SPV) set up by Eco World, Uda Holdings and EPF to facilitate the BBCC project.
Eco World holds a 40% stake in the SPV, while Uda Holdings and EPF hold 40% and 20% stakes respectively.