Joint venture with Thailand’s retail giant is projected to be the largest shopping centre in Shah Alam.
KUALA LUMPUR: I-Bhd has finalised the corporate structure with CPN Real Estate Sdn Bhd and several related parties to develop and manage CentralPlaza@i-City in Section 7, Shah Alam.
“The corporate structure would enable CPN to take the lead in developing, leasing and managing the mall, thereby enabling I-Bhd to focus on the development of other properties in i-City as well as to focus on its leisure business.
“At the same time, the corporate structure would facilitate the conversion of the mall into a real estate investment trust at an appropriate time,” I-Bhd said in a statement.
In an announcement to Bursa Malaysia, I-Bhd said its unit, I-City Properties Sdn Bhd, had sealed the joint venture (JV) and shareholders agreement with CPN Real Estate, CPN Malls Malaysia Sdn Bhd, Central Plaza I-City Malls Malaysia Sdn Bhd, Central Plaza I-City Sdn Bhd and Central Plaza I-City Real Estate Sdn Bhd.
The company, via I-City Properties, holds a 40% stake in a newly incorporated JV company – Central Plaza I-City Malls Malaysia Sdn Bhd (JV company) – thereby making it an associated company of the group.
“CPN, through its subsidiaries CPN Real Estate and CPN Malls Malaysia, holds 60% in the JV company,” it said.
I-Bhd said Central Plaza I-City, a unit of Central Plaza I-City Malls Malaysia, would be the mall manager. Central Plaza I-City Real Estate, a unit of Central Plaza I-City, meanwhile, would develop and own the mall.
It has been reported that CentralPlaza@i-City would cater to a sizeable market of close to 700,000 of Shah Alam’s population and some 900,000 of Klang’s population.
Upon completion, the CentralPlaza@i-City shopping mall would be the largest shopping centre in Shah Alam.
Currently in the design stage, the RM580mil CentralPlaza@i-City project will be developed on a freehold land of 11.12 acres with a gross floor area of around 1.5 million sq ft and a net leasable area of about one million sq ft.
“The development of CentralPlaza@i-City is the first step in our strategic alliance with CPN.
“Apart from Clarke Quay@i-City, the JV agreement also requires us to offer CPN the opportunity to participate in other retail developments by i-City beyond Shah Alam,” deputy chairman Datuk Eu Hong Chew said.