I-Bhd envisions different shopping experience with CentralPlaza project
I-BHD is bringing Malaysians a different shopping experience with the planned opening of the CentralPlaza@i-City mall at its flagship property development in Shah Alam.
CentralPlaza@i-City's development will offer shoppers looking for an alternate experience with a Thai flavour away from most of the retail offerings found in the country today.
I-Bhd's founder Tan Sri Lim Kim Hong says that this runs parallel with the company's aim to establish a mall to complement the existing Japanese, Hong Kong or Singaporean-style retailing that is most commonly found in Malaysia at present.
The mall will be situated on I-Bhd's RM5bil gross development value (GDV) i-City property development. CentralPlaza@i-City will be developed on a 11.12 acres plot of land with gross floor area of 1.5 million sq feet and total net leasable area of close to 1 million sq ft.
The mall is a joint venture (JV) between I-Bhd and its Thai partner CPN Global Co Ltd with a 40:60 ownership ratio respectively. CPN will own its stake through two subsidiaries: CPN Real Estate Sdn Bhd and CPN Malls Malaysia Sdn Bhd while the remainder will be owned by I-Bhd's subsidiary i-City Properties Sdn Bhd.
The CPN led JV will see the Thai company designing, building and managing the mall.
CPN's president and chief executive officer Kobchai Chirathivat tells StarBizWeek that the mall will give shoppers a retail experience different from the rest of the market.
“The concept will be unique from the other malls around here in Malaysia. We will try to differentiate and create something away from the other malls to add value to this city for the consumer and the vicinities,” Kobchai says.
He explains the mall will be different in terms of design, ambience and genre from retail offerings currently.
“We will bring Thai retailers to this mall. Many of them have expressed their interest including the leading ones such as fashion stores. The Thai element will be quite high compared to the other (malls). We have seen some Thai retailers enter Malaysia but we are trying to create a strong concentration of Thai retailers,” Kobchai says.
“We are also targeting international retailers and brands wanting to expand in Asia and who are not here yet. These also include the regional players, some from China, the Philippines and Indonesia,” he adds.
CentralPlaza@i-City will target the middle to upper middle income market segment of the local populace. This is also the same group of people that is expected to populate i-City and its vicinity eventually.
While it is still too early to talk about the specifics of the mall, Kobchai notes that extensive market research is being done presently before construction starts next year. The mall is expected to complete at the end of 2016.
He also notes that CPN is able to offer the diverse retail experience due mainly to the company's presence in other countries as well. Other than being based in Thailand, CPN also operates three department stores in China, 11 in Italy, one in Denmark, four speciality stores in Vietnam and another in Indonesia, Jakarta that is scheduled to open next year.
Central Pattana PCL is the biggest retail and property developer in terms of market capitalisation listed on the Stock Exchange of Thailand (SET). It is presently the 16th largest stock in terms of market capitalisation on the SET with over 30 years of experience since its inception in 1980.
CPN's core businesses comprise the development of large-scale shopping complexes and provision of retail space for lease and services. Presently, CPN manages 21 shopping complexes and owns 18 of these projects while three are leased out to the CPN Retail Growth Leasehold Property Fund.
Other than shopping complexes, Central Pattana also develops, owns and manages seven office buildings, two hotels and two residential properties in Thailand.
It is these expertise by CPN and the strategic offering by I-Bhd that brought these two parties together for the development of this mall.
According to I-Bhd's chief executive officer Datuk Eu Hong Chew, the idea for this JV was mooted two years ago while serious discussions only started a year ago.
“I am happy to say that the culture at the Central Group is in line with ours here at I-Bhd. These include the strong professional elements (in both companies) as well,” Eu says in his speech during the signing of the JV earlier in the week.
Meanwhile, asset consultancy firm Henry Butcher Malaysia's director Lim Eng Chong tells StarBizWeek that the move both JV companies was a strategic one given the location vicinity of the i-City development.
“I think this makes a lot of business sense, and the move to offer an alternative retailing experience will help CentralPlaza@i-City position itself and carve out a niche in the industry that is considered saturated at the moment,” Lim says.
The Central Group with their diverse shopping malls in Thailand also has their own following amongst Malaysians and bringing this retail experience will help it position itself among these crowds,” he adds.
Indeed the development of this niche mall will likely to attract the crowds that have yet to be tapped by other marketeers and retail developers in Malaysia.
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May 29 2013, 11:24 AM, updated 13y ago
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