Jun 24 2024, 04:24 PM, updated 2y ago
THE mall at Empire City Damansara, which has had multiple false starts over the past decade, is set to finally open in June 2025, 14 years after the project was first launched. Ahead of its opening, the owners of the mall — which will be renamed Hextar World at Empire City — have scheduled a launch event on Oct 10.
The name change reflects the entry of businessman Datuk Eddie Ong Choo Meng, who operates the Hextar group of companies, which has a diversified range of businesses including chemical, industrial and property. He not only owns a stake in the mall via Hextar Healthcare Bhd (KL:HEXCARE) (formerly known as Rubberex Corp (M) Bhd), but is understood to have acquired a stake in the mall in his personal capacity.
Ong is a substantial shareholder of Hextar Healthcare, holding a 30.24% stake through Hextar Rubber Sdn Bhd.
The Empire City Damansara project, located along Lebuhraya Damansara-Puchong in Petaling Jaya, Selangor, comprises 11 blocks of apartments, hotels and office buildings, including HCK Tower and MYEG Tower, which sit atop a retail podium called Hextar World. The retail podium has 1.7 million sq ft of net lettable area.
It is learnt that the mall has approached potential tenants, including food retailer Village Grocer, home improvement retailer Mr DIY Group (M) Bhd (KL:MRDIY) and luxury fashion brands.
Asked to comment on the mall’s launch date, its name change and his purchase of a stake in the mall in his personal capacity, Ong tells The Edge that a press conference will be held in the next few months.
The mall was first conceptualised and developed by Mammoth Empire Holdings Sdn Bhd (MEH). MEH, founded by low-profile businessman Datuk Sean Ng Yee Teck and his partner Datuk Danny Cheah, is the developer of Empire Hotel and Empire Shopping Gallery in Subang Jaya (now known as NU Empire Shopping Gallery).
Over the years, several opening dates have been announced but the mall has yet to commence full operations. In fact, in 2015, MEH held the “Party of the Century” with celebrities including Paris Hilton and K-pop group 2AM at the mall, but the opening was delayed yet again. It is worth noting that the mall did open briefly with a few retail shops during the Sea Games in 2017 as Empire City Damansara was the venue for the figure skating, ice hockey and speed skating events.
With the entry of new shareholders and a fixed launch date in October, the mall is expected to be fully operational in 2025. There is talk that celebrities may be invited to attend the opening.
Nonetheless, one retailer contacted by The Edge expresses his concerns about the mall. “We need to know the mall’s positioning and plans, especially in terms of gaining public confidence as the mall looks abandoned and has been dubbed a failed mall even before it has opened.”
In October 2021, Hextar Healthcare announced its venture into the property investment/retail scene through the acquisition of a stake in the yet-to-be-completed Empire City Damansara Mall.
The company’s entry was through a collaboration with Alliance Premier Sdn Bhd, EXSIM Holdings Sdn Bhd and JT Momentum Sdn Bhd (EXSIM and JT are collectively known as EXDJ shareholders) for the development and operation of the mall. The parties set up a company called Alliance Empire Sdn Bhd, with Hextar Healthcare spearheading the project.
Under the collaboration, Hextar Healthcare entered into an agreement with Alliance Empire to subscribe for 200,000 new shares, or 20% equity interest, in the latter for RM180 million cash. Alliance Premier and EXDJ shareholders would hold the remaining 60% and 20% respectively.
Prior to Hextar Healthcare’s emergence as a shareholder of Alliance Empire, the latter had completed the acquisition of Empire City Mall for RM480 million. It then issued 600,000 shares and 200,000 shares in the company to Alliance Premier (75%) and EXDJ shareholders (25%) respectively.
After the completion of the proposed subscription, the shareholders of Alliance Empire were Alliance Premier (60%), EXDJ shareholders (20%) and Hextar Healthcare (20%).
Sources say that last year, Ong acquired a stake in the mall in his personal capacity from Ng. The exact size of the stake is not known.
Hextar Healthcare, in its annual report for the financial year ended Dec 31, 2023, released on April 26 this year, said, “In terms of property investments, the group’s 20% stake in Empire City Mall is also expected to generate positive earnings and returns within the next 12 to 18 months when the mall becomes fully operational by the second quarter of 2025. This would provide the group with an alternative source of income and a viable platform for future acquisitions and ventures into property investments.”
It is worth noting that in September 2021, Ong emerged as a substantial unitholder of retail asset-focused KIP Real Estate Investment Trust (KL:KIPREIT) with the acquisition of a 9.895% stake. He has since increased his direct and indirect stakes to 0.82% and 19.93% respectively.
Then in December 2023, Ong also surfaced as a substantial unitholder of Hektar Real Estate Investment Trust (KL:HEKTAR) with direct and indirect stakes of 8.465% and 19.997% respectively.
This post has been edited by premier239: Jun 24 2024, 04:24 PM
Empire City mall to b revived n opened in Jun 2025
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