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Tuesday, March 3, 2009

UDA plans RM111m mall, hotel investment in Malacca

PROPERTY firm UDA Holdings Bhd is investing RM111 million to build a Street Mall and a four-star hotel in Malacca.

It has bought a 1.48ha land on Jalan Tun Ali for RM11 million from the Malacca state government and will spend another RM40 million to develop the hotel, which will be managed by its hotel management arm Ancasa Hotel & Spa. There are currently three local hotels under the Ancasa banner.

The remaining RM60 million is the gross development value for the Street Mall, which will have about 100 shoplots.

"We expect the hotel's return on investment to come in between six-and-a-half years and seven years," said UDA managing director Datuk Jaafar Abu Hassan at a signing ceremony in Kuala Lumpur yesterday.

Also present were Malacca Chief Minister Datuk Mohd Ali Rustam and Entrepreneurs and Cooperative Development Minister Datuk Noh Omar.

The company has engaged retail consultant, Henry Butcher to oversee the development of the mall.

Construction of the project is expected to start in September and is targeted for completion by 2011.

Jaafar said UDA is also in discussion to develop phase two of the Street Mall.

It was earlier reported that the group plans to double its landbank in the country to about 800ha to develop hotels and shopping complexes.

It is eyeing land in Kuala Terengganu, Johor Baru and Kuantan for hotel development and Malacca and Kuantan for commercial complexes.

Noh Omar said the development of the street mall by UDA, an agency under his ministry, will encourage more Bumiputera to be business owners.

"The Street Mall is located in the city centre and is near the UiTM Malacca campus. It is a vibrant area with high traffic, definitely a good business area," he said.

UDA, which owns and operates malls, rents out space to small Bumiputera businesses at subsidised rates and leases are renewed every two years.

By Business Times (by Zurinna Raja Adam)

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