Malaysia Airports And Mitsui Fudosan entered into a joint venture agreement to develop the largest outlet project in Southeast Asia
21 August 2013
Sepang, 21 August 2013 - We are delighted to announce that Malaysia Airports Holdings Berhad and Mitsui Fudosan Co., Ltd. have entered into a joint venture agreement and formed a joint venture company called MFMA Development Sdn. Bhd (MFMA) for the development of the largest factory outlet project to be tentatively called "Mitsui Outlet Park KL International Airport (KLIA)".
MFMA will lease the land owned by Malaysia Airports, and will be responsible to construct the buildings, and lease it out to tenants. It will also be tasked to promote this project. MFMA is 70% owned by Mitsui and 30% owned by Malaysia Airports. MFMA will be appointing Mr Takehito Fukui as the Managing Director.
The Phase 1 of the project will include a shop area of approximately 25,000 sq. metres and would house approximately 140 shops. The construction of Phase 1 is scheduled to commence by the end of 2013 and the Outlet Park will open in early 2015. The Final Master Plan, which will be with the development of Phase 2 and 3 increase to 46,300 sq. metres of shop area housing approximately 260 shops.
* Perspective photos can be downloaded from https://drive.google.com/folderview?id=0B-p6MYIRfeptRGVMbnM2aS0tT3M&usp=sharing
Phase 1 development has taken into consideration the commercial market potential in Kuala Lumpur in terms of the increase in population, income level, and the number of tourist. Furthermore, in 2012 KLIA registered almost 40 million passengers and it is expecting to register a higher number in the following years, which will bode well for the project. There are also plans in place to provide shuttle bus service from the airport to this outlet park and to establish check-in counters, and flight information display boards at the outlet park.
This development is the first major joint venture project in Southeast Asia for Mitsui. This development has been determined through a request-for-proposal bidding method by Malaysia Airports for the construction of outlet establishment. Mitsui participated in the bidding exercise against leading commercial establishment developers around the world, and was determined to be the partner upon winning the bid.
This property is located within KLIA Aeropolis, which is about 60 km south from the Kuala Lumpur city centre and takes about 40 minutes by car from the city centre. It is faced toward the main road that connects the airport and city centre and is excellently located near a network of highways that leads to other major cities such as Petaling Jaya and Shah Alam besides Kuala Lumpur. The opening of klia2, 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.
This property is part of the KLIA Aeropolis Plan, a development mix of commercial real estate that will include offices, commercial establishments, a convention centre, logistics facilities, a theme park, golf courses, and many other projects. The project will be developed in approximately 180,000㎡ area of land, with approximately 46,300㎡ of overall shop areas and about 260 shops in the final phase.
This will be the largest outlet establishment by Mitsui. Brands from Europe, the United States, Asia, and Japan comprising a wide variety of business categories centred on luxurious brands, casual brands, specialty boutiques, and many more 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.
The development will be tailored to the local business practices while maximising the experience and knowledge Mitsui has acquired in the development of commercial establishments, such as Mitsui Outlet Park, tenant leasing and operations.
Malaysia Airports sees this joint venture as a pacesetter for the development of KLIA Aeropolis and it 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 marketing of factory outlets. One of the most important benefits from this project is the opportunity to further expand 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 Jin Qiao. Mitsui also developed housing projects in Tianjin Eco-City, as well as Shanghai New Town "Hao shi huang ma yuan." With a focus on property development and commercial projects, Mitsui sets further engagement in business deployment in Southeast Asia in the future as one of its growth strategies pillar. To date, Mitsui has drawn up an investment of 500 billion yen in Europe and the United States, as well as Asia by fiscal 2017 in Innovation 2017 (our group's medium to long-term business plan in the fiscal 2012 - 2017).
About Malaysia Airports
Malaysia Airports manages and operates 39 airports in Malaysia: 5 international, 16 domestic and 18 Short Take-Off and Landing Ports (STOL Ports). It also has operations in India and Turkey. On November 30, 1999, Malaysia Airports became the first airport company to be listed in Asia.
KL International Airport (KLIA), its flagship airport was thrice voted as the Best Airport (15-25 million passengers per annum) in the 2005 AETRA awards, 2006 ACI-ASQ awards and 2007 ACI-ASQ awards while the Low Cost Carrier Terminal (LCCT-KLIA) was named CAPA Low Cost Airport of the Year at the CAPA Aviation Awards for Excellence 2006. KLIA has also taken a big stride in the realisation of becoming a global integrated hub by launching the Next Generation Hub concept, an initiative aiming to position the ultra-modern airport as a complete hub for all.
Malaysia Airports has also received numerous awards that acknowledged its commitment in service, community engagement, corporate responsibility and organisational excellence.