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Friday, August 14, 2009

SP Setia gets three anchor tenants for Shah Alam mall

SHAH ALAM: SP Setia Bhd has secured three major anchor tenants for the first phase of its Setia City Mall in Setia Alam, Shah Alam, says president and chief executive officer Tan Sri Liew Kee Sin.

“Unfortunately, we cannot reveal who they are for now. So far, we have also spoken to about 50 potential retailers for the mall and expect a full take-up by the time construction is completed by end-2011.

“Construction is expected to begin within the next two months,” Liew said after an agreement signing between Greenhill Resources Sdn Bhd and CIMB Bank Bhd, Public Bank Bhd and Affin Bank Bhd for a RM315mil syndicated loan facility.

Greenhill Resources is a 50:50 joint venture between SP Setia and Lend Lease Asian Retail Investment Fund 2 Ltd.

The event was witnessed by Selangor Mentri Besar Tan Sri Khalid Ibrahim.

Lend Lease, which has operations in Australia, Asia, Europe, the Middle East and the United States, is the mall’s designer while SP Setia is the developer.

The first phase will have a net lettable area of about 700,000 sq ft and comprise a department store, 250 local and international specialty stores, major anchor retailers and an entertainment precinct. Its gross development cost is RM450mil.

The mall includes access to about 2,000 parking lots and easy connectivity to nearby roads, towns and major highways.

“It is targeted at the mid to high-end income group and we hope to attract retailers that cater to that demographic,” Liew said, adding that construction of the second phase would depend on response to the first phase.

“But we plan to begin construction of the second phase in five years.”

SP Setia chairman Tan Sri Abdul Rashid Abdul Manaf said the mall was expected to “dramatically enhance” Shah Alam’s shopping experience and appeal to the growing population in the area.

“Setia Alam has over 20,000 new residents and is expected to grow to over 50,000 by the time the mall opens,” he said.

CIMB group chief executive Datuk Seri Nazir Razak said the shopping centre was the first mall in Malaysia to be financed since the global economic downturn.

“This project is timely, given the quiet market currently in light of the economic climate.

“This also shows that banks will still lend if the development is a good quality project,” he said.

Nazir said local developers should not shy away from projects due to the downturn. “A crisis always presents opportunities,” he said.

By The Star (by Eugene Mahalingam)

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