As PGIM sells, developers and other funds buy retail space
JUDGING from the couple of retail deals in the last 10 days, small can be beautiful.
The SStwo Mall in Petaling Jaya is smallish. So is Aeon Mall Kinta City in Ipoh. Both of them have been sold.
Setapak Central Mall is the third ongoing mall deal.
The SStwo mall, closed for about three years now, will be making way for a mixed integrated development.
Prime location: Koek says a 250-room hotel and some serviced apartments will be built in the SStwo mall area.
Developer DK Group of Companies has bought the mall owner, SStwo Mall Sdn Bhd.
DK Group founder Danny Koek Tiang Kung says the plan is to build a 250-room hotel and some serviced apartments.
The retail space from its current net lettable area of 460,000 sq ft will be reduced to between 260,000 sq ft and 300,000 sq ft.
Koek says: “It has about 7.81 acres, so there is enough space for all the developments.
“This is an established and prime location and there has not been much development in the area in the last several years.”
The conversion of the mall, from a single-used development, to a multi-faceted one by the new owner also underscores the popularity of mixed integrated projects the last 10 years or so.
“People want convenience,” says Koek.
Mixed use projects seem to be the trend today with the residential-retail mix being the most popular combination.
“Not offices,” says Koek.
Read more: The Star Property Insights