Petaling Jaya – Following the Federal Court’s decision in dismissing the application for leave to appeal by Metroplex Holdings Sdn Bhd (“Metroplex”) on 20 February 2012, Sunway REIT Management Sdn Bhd, the Manager for Sunway Real Estate Investment (“SunREIT”) (“Manager”) is pleased to announce the refurbishment plan for Sunway Putra Place as part of the Manager’s transformation initiative to rejuvenate and reposition the mall as the preferred shopping destination for local visitors and tourists. The refurbishment for Sunway Putra Mall will be undertaken to refresh the architecture of the mall to appeal to the current retail trends. The refurbishment exercise is also expected to see total gross floor area (“GFA”) increasing from 860,000 sq. ft. to 952,000 sq. ft.
The ultra-modern architecture design manifests the cosmopolitan lifestyle of the urban population as well as accentuating the prominence of the shopping mall. The Manager is positioning the shopping mall as a“Lifestyle Urban-Chic” shopping mall targeting at mid income level to mid-upper income level shoppers and both domestic and foreign tourists with an exciting blend of tenancy mix.
Architectural transformation aside, distinctive retail zoning is one of the main features of the mall where interesting concepts will be introduced into the shopping mall. The “Asian Avenue” is a uniquely themed retail segment with food and entertainment components as well as addition of 8 screens cinema. The preliminary capital expenditure (capex) for the refurbishment of the mall is estimated at RM200 million. The refurbishment exercise is expected to take about 15-18 months with a projected return on investment (“ROI”) of 12.5% to 15.0%.
Dato’ Jeffrey Ng, CEO of Sunway REIT Management Sdn Bhd commented “Following an extensive study and planning process, we are pleased to see the results arising from the asset enhancement initiative. The substantial creation of the new lettable area (“NLA”) in excess of 100,000 sq. ft. coupled with better retail layout planning will translate into substantial increase in rental income in the future. This represents an increase of 20% in NLA over its original NLA of 505,448sq. ft.”
“We are looking forward to introducing wholesome retail and entertainment experiences for shoppers with the introduction of new and exciting themes in the various retail zones. We will be introducing interesting food and beverage, alfresco and entertainment concepts to create vibrancy to the night scene and enabling patrons to enjoy the magnificent skyline of the Kuala Lumpur City. We are confident that our new tenancy mix will draw new and larger crowds to Sunway Putra Mall upon completion of the refurbishment. Tenants at Sunway Putra Mall will appreciate the modern ambiance with improved retail layout and circulation within the shopping mall. The businesses of Sunway Putra Hotel as well as Sunway Putra Tower will benefit synergistically from the transformation of the new shopping mall. ” He added.
The refurbishment exercise will also include improvement in traffic circulation within the proximity of Sunway Putra Place for the convenience of shoppers. The Manager is currently undertaking studies in vehicular traffic improvement on both ingress and egress points of the mall, direct linkage to LRT, covered pedestrian walkways to main public transportation hubs, namely the KTM Komuter Station and Hentian Putra Bus Terminal.
SunREIT is optimistic about the future prospects of the 3-in-1 mixed used development of Sunway Putra Place and expect substantial capital appreciation post refurbishment. Sunway Putra Place is in a strategic location in the central business district of Kuala Lumpur and in the vicinity of the Putra World Trade Centre and UMNO Headquarters. Kuala Lumpur will see another impressive landmark property in the making. We are confident that Sunway Putra Place will be well-positioned as a new tourism destination for shopping, entertainment and hospitality.