Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Monday, August 17, 2009

Mayland to expand retail mall business

Malaysia Land Properties Sdn Bhd (Mayland), a privately held property developer controlled by Tan Sri David Chiu, could add a new mall under its wings by as early as next year.

Mayland, which owns and manages the RM50 million Hartamas Shopping Centre, sees the operation of shopping complexes as an ideal avenue for recurring income.

"We are looking at expanding our recurring income division mainly by doing more retail. We believe in the Malaysian market," said its director Winnie Chiu.

"There will be something coming up soon within the Klang Valley. We expect to finalise the details by year-end," she told Business Times in an interview.

Chiu added that Mayland would consider other locations for a mall if it meets the group's criteria.

Mayland's keenness to expand the retail mall segment of its business is partly due to the double-digit revenue growth notched by its maiden 300,000 sq ft Hartamas Shopping Centre in Kuala Lumpur.

The mall, which forms part of the integrated Plaza Damas project, provided a return on investment within three-and-a-half years.

In the first three years, it grew at an average of 10 per cent year-on-year.

"Hartamas Shopping Centre has a proven track record. Our revenue has grown 35 per cent this year," she said.

This year's handsome growth numbers are the result of an additional 20,000 sq ft of space, a rental increase following tenancy renewals as well as a better tenant mix.

Tweaking its tenant mix coupled with the opening of Taylor's College a year ago has seen average patronage to the mall increase to 8,500 a day from a daily average of 6,000 last year.

"A 20 per cent increase in revenue next year is possible," Chiu said, when asked about the outlook for 2010.

She said this will be made possible by the creation of additional space through the reduction in space wastage. The improving economy will further lend support to improved revenue.

The mall has a total of 138 outlets and 35 per cent of its tenants are in the food and beverage business. Its best performing tenant is Japanese restaurant Rakuzen.

By Business Times (by Vasantha Ganesan)

No comments: