Malaysia Airports Signs MOU With Mitsui Fudosan Co. Ltd., Japan To Further Expand Commercial Opportunities
22 November 2012
Kuala Lumpur, 22 November 2012 - Malaysia Airports is pleased to announce that it has entered into a Memorandum of Understanding (MoU) with Mitsui Fudosan Co. Ltd., Japan (Mitsui) to develop an upscale factory outlet park to be known as Mitsui Outlet Park KLIA on an approximately 50 acres of land at KLIA, Sepang. The outlet park will be developed complete with F&B and entertainment facilities as its complementary components based on strong themed attractions i.e. Knowledge and Attractions, Prime Time Complex and World Food Expo.
Mitsui Outlet Park KLIA, the first Mitsui outlet park in South East Asia and the 14th for Mitsui, will be developed over three phases at an estimated gross development cost of about RM335 million. It will boast a total lettable area of about 47,000 square meters upon full completion, thus positioning the outlet park as the largest within Mitsui's stable of outlet parks. The first phase of development is expected to begin within the first quarter of next year and is expectedto open its doors to the public by end of 2014.
Mitsui Outlet Park KLIA will offer a wide selection of leading brands including luxury brands, popular select shops, high grade and top Asian fashion, sports & outdoor items, fashion accessories and gifts at prices that are guaranteed to be below their recommended retail prices. More than 240 famous international designer brands will be invited based on their presence in existing Mitsui Outlet Parks in Japan and China.
In addition to popular European and American brands, the upscale outlet park will also offer top Asian fashion from Japan, South Korea, Hong Kong and Malaysia thus setting it apart from the other retail centers in Malaysia in terms of breadth of brand diversity.
Mitsui, a leading real estate developer in Japan has been established since 1941 with global operations in US, UK, Singapore and China is mainly engaged in the development of shopping centres, hotels, office complexes, etc. The Company to date has 13 outlet parks (12 in Japan and 1 in China) with the first outlet established in Osaka, Japan in 1995.
The MoU was signed today at Malaysia Airports Corporate Office by its Senior General Manager, Muhamad Khair Mirza while Mr Masatoshi Satou, Managing Officer of Mitsui Fudosan Co. Ltd., Japan signed on behalf of Mitsui, witnessed by Tan Sri Bashir Ahmad, Managing Director of Malaysia Airports.
Tan Sri Bashir Ahmad said, "We are very honoured to be referred to Mitsui by Malaysia Property Incorporated (MPI). This opportunity is intended to be the pacesetter for the development of KLIA Aeropolis and will boost the confidence of investors and developers in the commercial potential of KLIA land. Malaysia Airports is pleased to form a strategic partnership with Mitsui which has vast experience and proven track record in real estate development including the development and management of factory outlets."
He also added, "One of the most important benefits from this project is the opportunity to further expand our non-aeronautical or commercial revenue base, in line with our "2010-2014 Business Direction: Runway to Success", where commercial development is slated to be our main driver of revenue and profitability growth.
Strategically located within the premise of KL International Airport (KLIA) which is about 60 km south of the urban area of Kuala Lumpur City Center, Mitsui Outlet Park KLIA will also prove to be a key attraction to more than 40 million passengers annually expected to connectthrough KLIA and klia2 next year onwards. The completion of the Mitsui Outlet Park KLIA in 2014 as well as klia2 next year will greatly enhance the overall KLIA retail offering hub, in line with the Government's effort in transforming KLIA into a Retail Hub under the EPP 12 of the Economic Transformation Programme (ETP). In addition, Mitsui Outlet Park KLIA will place Malaysia and KLIA on the retail tourism map as a destination of choice.