Aeon plans RM700mil capital expenditure

By EUGENE MAHALINGAM

KUALA LUMPUR: Aeon Co (M) Bhd
will be investing RM700mil in capital expenditure (capex) over the next
two years to build new shopping malls and to refurbish some of its
existing ones.
“This year, we're allocating RM350mil to refurbish
the malls in Wangsa Maju and Bukit Raja. In December, we are opening
our 22nd mall in Kulai Jaya (Johor), said managing director Nur Qamarina Chew said in an interview.
She added that the company was investing about RM240mil in the new mall in Johor.
“Next
year, we will also be investing about RM350mil to refurbish some malls
and open new ones in Taiping, Ipoh and Bukit Mertajam. By 2015, we're
looking at having between 27 and 28 malls in the country.”
Aeon
announced its first quarter result ended March 31 last Thursday that saw
its net profit soared to RM51.1mil from RM37.6mil a year ago.
This was on the back of revenue for the period that increased by 11.5% to RM869.3mil.
Meanwhile, Aeon executive director Poh Ying Loo
said the company currently had no plans to set up a real estate
investment trust (REIT) for its malls. “We have no plans to set up a
REIT. The (REIT) industry is still developing, albeit at a fast rate. We
will monitor and see how it (the industry) progresses.”
Chew
said Aeon was in a good cash position and that the company did not need
see a reason to set up a REIT. “The company has RM454mil in cash as at
end-December.”
Separately, Chew said she was positive about the
outlook for the local retail industry in the second quarter of this
year, following a “cautious” first quarter.
“Consumers were cautious in the first quarter but it was still positive. The food and beverage outlets were still doing well.
“We
are positive about the retail industry in the second quarter. Demand is
still there. We just need to change our promotions to cater to the
demand.”