Malaysia Airports Holdings and Japanese real estate company Mitsui Fudosan are collaborating to develop Southeast Asia’s largest outlet centre.
The two have formed a joint venture with an investment of 335 million ringgit (US$100.9 million) to build “Mitsui Outlet Factory Park”.
The development, the first major joint venture project in Southeast Asia for Mitsui, will be located within the Kuala Lumpur International Airport (KLIA) grounds with construction to begin by the end of this year.
The opening of KLIA 2, the second terminal in KLIA in May 2014, which is expected to welcome up to 45 million people, will further support this project when it is open in the early of 2015.
The project will be developed in approximately 180,000 sqm area of land, with approximately 46,300 sqm of overall shop areas and about 260 shops in the final phase.
Luxurious brands, casual brands and specialty boutiques from Europe, the US, Asia and Japan will be available at the outlet park.
“We are also looking into introducing entertainment aspects and attracting F&B operators to operate in the outlet park, offering exciting entertainment and sumptuous dining options to about 25 million tourists who visit Malaysia annually,” said Malaysia Airports in a statement.
The project further expands Malaysia Airports’ non-aeronautical or commercial revenue base, in line with its “2010-2014 Business Direction: Runway to Success”, where commercial development is slated to be Malaysia Airports’ main driver of revenue and profitability growth.
Mitsui regards the overseas projects as a growing field. It has developed and managed an outlet mall in Ningbo, China, and has plans for similar outlet mall projects in Taiwan, and LaLaport project in Shanghai.