Sime, CapitaMalls inks RM500m mall venture

Sime Darby Property and CapitaMalls Asia Ltd today entered into a conditional agreement to form a 50:50 joint venture to develop a shopping mall on a freehold site in Taman Melawati here. The total development cost is expected to be about RM500 million.

"We are confident that our partnership with CapitaMalls Asia is the best strategy to maximise the returns on our investment and diversify our income portfolio," said Group Chief Operating Officer of Sime Darby Bhd, Datuk Wahab Maskan, in a statement today.

"The synergistic partnership provides us the platform to leverage on their experience as the leading shopping mall developer, owner and manager in Asia," said Wahab who is also the Managing Director of Sime Darby Property.

The joint venture will develop the shopping mall with a total net
lettable area (NLA) of about 635,000 sq ft. Once completed in 2016, it will serve a catchment population of around 800,000 people within a 10-minute drive.

The mall is also expected to be a catalyst to enhance the overall value of properties within its vicinity. -- Bernama