KUALA LUMPUR: Phase one of the multi-billion-ringgit Bukit Bintang City Centre (BBCC) development is nearing completion, with the retail, office and residential components seeing high take-up rates amid the soft property market.
Located on the former site of the Pudu Prison, about 62% of the high-end, high-rise residential units completed so far have been taken up by foreigners, mainly from Singapore, Hong Kong, Japan and China.
The 19.4-acre BBCC is being developed by BBCC Development Sdn Bhd, which is a joint venture between Eco World Development Group Bhd (40%), UDA Holdings Bhd (40%) and the Employees Provident Fund (EPF) (20%).
BBCC Development CEO Low Thiam Chin said that the project’s first residential offering, Lucentia, has recorded a take-up rate of over 98%. Lucentia is a high-rise residential development, which features two conjoined towers of 47 and 35 floors respectively.
Low said that BBCC’s retail components, comprising the Lalaport mall and the Malaysia Grand Bazaar (MGB), have also seen strong interest from businesses.
About 76% of Lalaport’s outlets have been leased out to date, while 52% of MGB’s floor space has been rented out.
The Lalaport mall is 51%-owned by Mitsui Fudosan (Asia) Malaysia Sdn Bhd, 32% by UDA, 11% by EcoWorld and 6% by the EPF.
“For MGB, which will be featuring exclusively Malaysian-made products by local entrepreneurs, we have a total of 92 retail units to be rented, with three big units.
“Once we get the tenants for the three units, the take-up rate will be above 70%,” he told reporters yesterday.
Meanwhile, for the office component, 50% of the 45-storey The Stride corporate tower’s units have been sold. “The tower was completed two weeks ago and we have started to hand over the units. After we completed the project, we are seeing tremendous interest from more prospective buyers who are enquiring about the remaining units.
“People are interested because it is a transit-oriented development that offers access to the Light Rail Transit, Mass Rapid Transit and Monorail, with a lot of facilities,” Low said.
When asked whether the glut in the office spaces have affected The Stride’s sales, Low said the project’s high-integration with transportation, residential and lifestyle elements have helped to create demand, unlike other commercial projects in Klang Valley.
The Stride is located in close proximity to the Merdeka 118 and The Exchange 106, both of which offer premium Grade-A office units.
“We are not worried about it (market oversupply). As long as the product has certain value, it will succeed. Despite the challenging market environment, the properties at good locations have been seeing high take-up rates,” stated Low.
The BBCC has been gradually opened to the public since early this year, beginning with the Lalaport mall in January and followed by the hand-over of Lucienta 1 in February.
Low noted that MGB’s soft opening will be done on March 31.
Meanwhile, The Stride’s two-storey co-working space – managed by Regus – will be opened early next month.
MGB is part of the BBCC’s entertainment hub, which also houses Golden Screen Cinemas’ theater and Sony Zepp Concert Hall. The concert hall has a capacity of 2,500 individuals.
According to Low, MGB is designed to be one-stop-centre where visitors can purchase local items such as handicrafts and snacks, as well as enjoy cultural performances.
“In addition to our efforts to help local entrepreneurs, we are helping MGB’s tenants to market and sell their products globally through the MGB superstore in Amazon, Etsy and eBay,” he added.
The BBCC project has an estimated gross development value (GDV) of RM8.7bil. To date, the total launched GDV stands at RM2.4bil. The project will be developed over the next eight to 10 years. The next development within the BBCC will be the SWNK Houze, featuring serviced apartments and studio units for the “young urbanites”.
Commenting on the overall market outlook, EcoWorld president and CEO Datuk Chang Khim Wah said the property market is set to improve further.
“Even during Covid-19, the market has been quite good. If you look at our sales for the financial year ended Oct 31, 2021 (FY21), we did RM3.5bil in sales. For the first four months of FY22, our sales were RM1.27bil.
“With the reopening of international borders, we will be seeing the entry of foreign investors. Even BBCC may see some overseas investments coming in. We see the market will be able to hold,” he said.