CapitaLand’s Malaysian malls are weathering a challenging retail climate, according to management.
CapitaLand Malaysia Mall Trust (CMMT) recorded net property income of RM57 million (US$14.6 million) in the last quarter.
“Amidst a challenging operating environment, we achieved a positive rental reversion of 2.2 per cent,” said Low Peck Chen, CEO of CMMT’s operator CapitaLand Malaysia Mall REIT Management.
Portfolio occupancy remained stable, registering 93.7 per cent as at March 31.
CMMT owns Gurney Plaza in Penang; three malls in Klang Valley – a majority interest in Sungei Wang in Kuala Lumpur; Tropicana City Mall and Tropicana City Office Tower in Petaling Jaya; and The Mines in Seri Kembangan; and East Coast Mall (pictured) in Kuantan, Pahang. The portfolio has a total net lettable area of over 3.1 million sqft.
Chen said Gurney Plaza and East Coast Mall achieved higher rental income year-on-year.
“To improve the diversity of the tenant mix in our malls, we are expanding the food and
beverage options at The Mines’ Level 3 and Tropicana City Mall’s ground floor. Shoppers can also look forward to new international fashion labels at East Coast Mall’s Level 1 when the area completes the asset enhancement works in the second quarter of this year.”
At Sungei Wang, CMRM plans to reconfigure the annex space into “a vibrant and energetic lifestyle zone that complements the retail offerings in the BBKLCC shopping belt,” she said.
The annex will house trendy retail, F&B, ‘athleisure’ and family entertainment components over a net lettable area of 170,000sqft spread across five levels.
David Wong, CMRM’s chairman, said Malaysia’s economy is expected to grow by 5.5 to 6 per cent this year, led by strengthening domestic demand and a resilient export sector.
But CMRM expects the the retail operating environment in Malaysia will remain challenging, in view of ongoing concerns about rising costs of living and growing competition from new shopping malls.”