From left: Tan, IGB Corp chairman Tan Sri Abu Talib Othman, Selia Pantai MD Datuk Mohamed Zaini Amran, Ghani and Kumpulan Prasarana Rakyat Johor Sdn Bhd chief Executive officer Johar Salim Yahaya looking at a model of the proposed Southkey Megamall in Johor Baru.KUALA LUMPUR: Mid Valley City’s developer, IGB Corp Bhd is partnering with Johor-based Selia Pantai Sdn Bhd to build a megamall in SouthKey, Johor Baru. IGB and Selia Pantai yesterday entered into a conditional memorandum of understanding (MoU) to establish a 70:30 joint venture (JV) for Southkey Megamall.
The megamall will be built on 36 acres (14.57ha) of leasehold land and it has a built-up area of 6 million sq ft. IGB group managing director Robert Tan said gross development value (GDV) for the project is expected to be around RM6 billion against a gross development cost (GDC) of about RM3 billion.
Southkey Megamall will be situated within the Johor Baru city Flagship “A” of Iskandar Malaysia, a five-minute drive from the Sultan Iskandar Customs, Immigration and Quarantine Complex. It will lie next to Jalan Tebrau, Jalan Bakar Batu and the Eastern Dispersal Link Highway.
Tan said the megamall’s strategic development would draw Singaporeans from the other side of the causeway to shop and holiday in Malaysia. The development is expected to take four to five years, and has a tentative gross development value of RM6bil.
“ It took us 15 years to get Mid Valley City to what it is today. Hopefully, it will take us only half that time with the Johor project,” said IGB Corp group managing director Robert Tan. Johor Menteri Besar Datuk Abdul Ghani Othman, who witnessed the MoU signing, said the project would complement other developemnts in the Iskandar Malaysia economic growth corridor.
A joint-venture company called Southkey Megamall Sdn Bhd will be set up to acquire three parcels of leasehold land measuring 36 acres for the project within the 300-acre Southkey development in Johor Baru.
Selia Pantai is the Southkey developer and is a public-private partnership between the Selia Group and the Johor government via Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ).
Southkey is located within the Johor Baru city flagship zone A of Iskandar Malaysia and is accessible via five-minute drive from the Sultan Iskandar Customs, Immigration and Quarantine (CIQ) complex as well as via Jalan Tebrau, Jalan Bakar Batu and the Eastern Dispersal Link.
Tan said it was a great location for the proposed Southkey Megamall. “It is not easy to find a location like this. We are bullish on the Johor market. There are many things happening in Iskandar Malaysia,” he said.
He said Selia Pantai had approached IGB Corp about six months ago with the proposal for the project, which is planned to have a retail mall as well as hotels, serviced apartments and offices.
The proposed Southkey Megamall will have six million sq ft of space, and will include a net lettable area of 1.5 million sq ft, with about 7,000 carparks and can accomodate two major anchor tenants as well as 400 to 500 retail outlets. IGB Corp will fund its portion of the project via internal funds and bank borrowings.
According to Tan, another six to nine months will be needed to do studies as well as resolve planning approvals and other issues pertaining to the project.
“We hope to start construction in 2013. This is our first project in Johor. we are always on the lookout for opportunities. We want to look in the north also. Ideally, we want to have Mid Valley City-type developments in the south, central and north (Penang),” he said
