MAHB-Mitsui factory outlet to open early 2015

MAHB-Mitsui factory outlet to open early 2015
Business & Markets 2013
Written by Charlotte Chong of theedgemalaysia.com
Thursday, 22 August 2013 11:28

KUALA LUMPUR: Malaysian Airports Holdings Bhd's (MAHB) factory outlet, which will be jointly developed with Japanese firm Mitsui Fudosan Co Ltd, will only open its doors early 2015.

MAHB managing director Tan Sri Bashir Ahmad Abdul Majid said the CONSTRUCTION [] of phase one of the project, which was initially targeted to open end-2014, is scheduled to commence by year-end.

He said MAHB forecasts the factory outlet would attract eight million visitors annually.

"The opening of klia2 (in May 2014), which is expected to welcome up to 45 million people, will further support this project when it is open in early 2015," he said after signing the joint venture agreement (JVA) with Mitsui yesterday.

MAHB has 30% and Mitsui 70% equity interest in the project, tentatively called "Mitsui Outlet Park KL International Airport (KLIA)", which will be the largest factory outlet in Southeast Asia.

The development costs for the outlet, situated on a 50-acre (20ha) site adjacent to MAHB's headquarters in Sepang, is RM335 million.

Bashir said Phase 1 consists of a shopping area of about 25,000 sq m that will house approximately 140 shops, while the development of Phases 2 and 3 will see an additional 46,300 sq m of lettable area and 260 stores.

"We have formed a joint venture company called MFMA Development Sdn Bhd for the development of the largest factory outlet project," Bashir added.

Takehito Fukui has been appointed managing director of the JV company that will oversee the construction, and leasing out of the outlet's commercial space.

On the appointment of contractors for the project, Bashir said: "We have not assigned contractors yet, but we will start the bidding exercise after the JVA."

As for the estimated profit MAHB will reap from the retail mall, MAHB senior general manager Khair Mirza said the airport operator expects a healthy growth in its non-aeronautical income.

He said the non-airport operations will grow in tandem with the number of passengers.

The mega shopping outlet will house brands from Europe, the US, Asia and Japan. Khair said the project will contribute RM20 million to the country's gross national income and create 2,577 new jobs by 2020.

Mitsui executive managing director Takeshi Suzuki said the development marks the first major JV project in Southeast Asia for the Japanese group.

Mitsui deputy managing director Takehito Fukui told The Edge Financial Daily that while it is not in talks with other companies to invest in Malaysia, it is open to opportunities that allow it to do so.


Also present at the event was the secretary-general of Ministry of Tourism Datuk Ong Hong Peng, who pointed out that the project serves as an entry point of the tourism New Key Economics Areas (NKEAs), which is the brainchild of Prime Minister Datuk Seri Najib Tun Razak.



This article first appeared in The Edge Financial Daily, on August 22, 2013.