PETALING JAYA: The CentralPlaza@i-City mall, a 60:40 project between Thailand’s leading retail property developer Central Pattana Pcl (CPN) and I-Bhd, is expected to generate RM60mil in pre-tax profit per year during the first lease term, according to I-Bhd deputy chairman Datuk Eu Hong Chew.
He said that by then I-Bhd’s group profits (before the mall contribution) was expected to be in the region of RM200mil per year resulting from growth in property development as well as leisure business.
Eu told StarBiz that CPN was the third foreign party that the Malaysian developer has ventured jointly with, alongside Australia’s ServCorp and Al Rahji Banking group.
“We work with these parties for their specific knowledge that we want to tap into. For CPN, we are eyeing their expertise in mall development and operations,” he said.
The CentralPlaza@i-City project in Shah Alam, is CPN’s first overseas mall in Malaysia and marks its first step into the Asean market.
The construction of the project, which will have a gross floor area of 138,000 sq m and net leasable area of 89,700 sq m, is expected to start next year and be completed in 2016.
Meanwhile, Wallaya Chirathivat, CPN senior executive vice president for business development and construction, was quoted in a press statement, as saying that CPN saw opportunities in overseas markets, particularly in Asean countries.
“As a single market, the aggregated Asean market will have high economic circulation and purchasing power, which are positive factors for the retail industry. CPN is interested in countries where there is high city growth, a large population, and expanding groups of middle and high-income consumers.
“We are focusing on promoting organisational growth with aggressive strategies. Over the next five years, we expect to open more shopping malls in Asean countries, each under a budget of at least 4-5 billion baht,” she said.
She said CPN believed the Malaysian retail market has plenty of room for growth.
“The country’s overall economy is growing and there is expanding investment, particularly in the retail industry. Furthermore, there is high urbanisation growth and strong industrial growth. The GDP and per capita income are also rapidly rising, said Chirathivat.