Japan developer Mitsui Fudosan forays into Malaysia’s rental housing market
TOKYO, NNA – Mitsui Fudosan Co., the leading real estate group in Japan, is entering the rental housing market in Malaysia with a local partner in its broader efforts for business expansion in Asia.
Mitsui Fudosan (Asia) Malaysia Sdn. Bhd., its local unit, has agreed with BBCC Development Sdn. Bhd., a three-way public-private joint venture, to build a serviced apartment in the central business district of the capital, the Japanese firm said Wednesday.
The 44-story building with 269 rooms will be the Japanese property conglomerate’s first directly run serviced apartment block, housing a swimming pool, gym, kids’ room and lounge among other facilities, and will open in January 2024, it said in a press release.
“There are few choices for rental housing with hospitality services in Kuala Lumpur, although the city has many condominium complexes,” Sayaka Obata, a Mitsui Fudosan spokeswoman in Tokyo, told NNA on Wednesday.
The 2,064-square-meter project site is three stations, or six minutes, away from KL Sentral Station. The construction of the building will begin in December this year for scheduled completion in September 2023, according to the release.
MFBBCC Serviced Suites Sdn. Bhd., the joint venture between the two firms, will take on the 242 million ringgit ($57 million) project to build and operate the property. The Japanese group will hold a 51 percent stake in it and the local partner will own 49 percent, the Malaysian partner said in a separate statement on Wednesday.
It is part of Phase 2 of BBCC, short for Bukit Bintang City Centre, which will also include another residential tower and commercial buildings, BBCC Development said.
The entire BBCC project on around 78,500 sq. meters of land has a gross development value of 8.7 billion ringgit, comprising a retail mall, an entertainment hub, four serviced apartment blocks, hotels and office towers.
BBCC Development is a joint venture forged by Uda Holdings Berhad, a government agency aiming to undertake sustainable real estate development and management, Eco World Development Group Berhad and Employees Provident Fund Board.
“Phase 1 of BBCC is well underway and set for its first handover in 2021,” UDA Holdings Chairman Jalaluddin Alias said in the statement.
Takehito Fukui, managing director of Mitsui Fudosan (Asia) Malaysia, said in the statement that his company’s “continued partnership with the project’s shareholders is a natural progression from our Phase 1 involvement in developing The Mitsui Shopping Park Lalaport retail mall project.”