Mitsui Fudosan in a RM242m JV to Acquire a Serviced Apartment Development in Kuala Lumpur

Main Photo: The skyline of the tallest buildings in KL

Date: June 2020

Location: Bukit Bintang City, Kuala Lumpur, Malaysia

Name: TBA – opening 2023

No. of Keys: 269 one, two and three bed apartments

Seller: TBA

Buyer: Mitsui Fudosan (Asia) Malaysia Sdn Bhd and BBCC Development Sdn Bhd entered into a joint venture agreement to form a JV company known as MFBBCC Serviced Suites Sdn Bhd to purchase a serviced residence block in the Bukit Bintang City Centre (BBCC) development for RM242 million.

Under the agreement, MFAM will hold 51% and BBCCD 49% in the joint company, which will manage and operate the property including granting of tenancies of units within the property.

The serviced residence block is a 44-storey building that will have a total of 269 units comprising 1, 2 and 3-bedroom apartments with built-ups from 532 sq ft to 1,188 sq ft.

It is part of Phase 2 of BBCC which will also include another residential tower and two blocks of commercial buildings. The serviced residence block is expected to be completed by the end of 2023.

UDA Holdings Bhd chairman Datuk Jalaluddin Alias said with Phase 1 of BBCC well underway and set for its first handover in 2021, the en-bloc sale of the serviced residence under Phase 2 affirms the project’s attractive propositions and potential as the upcoming nucleus of the city centre.

EcoWorld Malaysia chairman Tan Sri Liew Kee Sin added that the deal also proves the strength and fidelity of the long bilateral ties forged between Malaysia and Japan over many years.

“Our nation is going through unprecedented times now with Covid-19, which has spared few countries globally and disrupted the global economy and foreign direct investments (FDI) around the world.

“However, we are fortunate to have the support of valued partners like MFAM who have stuck with us through thick and thin and are committed to working alongside us to assure the continued success of the BBCC development which they are an integral part of,” he said.

MFAM managing director Takehito Fukui said MFAM’s continued partnership with the project’s shareholders is a natural progression from its Phase 1 involvement of developing The Mitsui Shopping Park Lalaport retail mall project.

BBCC is a joint-venture project between UDA Holdings, Eco World Development Group Bhd (EcoWorld Malaysia), and the Employees Provident Fund Board.

The masterplan comprises a retail mall, an entertainment hub, four blocks of serviced apartments, a lifestyle hotel, three blocks of strata and corporate offices and an 80 storey 3-in-1 signature tower that will comprise corporate offices, a 5-star hotel and luxury residences.

Phase 1 of the development consists of the retail mall and retail podium, strata office and entertainment hub, two blocks of serviced apartments and the entire infrastructure works.

These components account for 50% of the total built up area of BBCC. As at end-Q12020, 65% of construction for Phase 1 and all infrastructure works for the development are progressing well and shall be completed ahead of its delivery slated in the first quarter of 2021.

THPT Comment: The big guys have teamed up for mega-project, adding to Kuala-Lumpur’s hotel and serviced apartment inventory.

First Seen: The Sun Daily

The Hotel Property Team (THPT) are a small group of highly experienced business professionals. Between us, we provide a range of skills and experience which is directly relevant to those involved in the hotel property market.

For more information – Visit www.thpt.co.uk or email info@thpt.co.uk.