PETALING JAYA (Oct 5): Glove maker Rubberex Corp (M) Bhd is proposing to take part in a joint collaboration to develop and operate Empire City Mall, Focus Malaysia reported today.
In a Bursa Malaysia filing yesterday, Rubberex announced its collaboration with Alliance Premier Sdn Bhd, EXSIM Holdings Sdn Bhd and JT Momentum Sdn Bhd through a joint venture company Alliance Empire Sdn Bhd.
Rubberex’s non-independent executive director Lim Chee Lip will “spearhead” the project and it has entered into a conditional share subscription agreement with Alliance Empire to subscribe shares in the joint venture company.
Chee Lip told the news portal that the investment “represents a 20% equity interest in Alliance Empire at RM180 million which be fully satisfied in cash”.
“Capitalising on the current global economic reopening and recovery themes, our first foray and diversification into property investment is in line with the group’s long-term strategy of delivering sustainable growth, steady income and value creation to the shareholders,” said Chee Lip.
“The Malaysian economy is undergoing progressive recovery, especially in the commercial and retail sectors,” he added.
Meanwhile, EXSIM Group’s managing director Lim Aik Hoe said: “With this strategic alliance collaboration, we are convinced that the Empire City Mall is set to be one of the iconic tourism hotspots in Malaysia within an integrated lifestyle commercial development,”
“Empire City Mall is a unique creation that would add value to the surrounding developments with its distinctive architectural façade design,” said Aik Hoe.
Empire City Damansara Mall, located along Lebuhraya Damansara-Puchong, has a net lettable area of 2.5 million sq ft. According to a report by The Edge Malaysia, it is understood that its value now is about RM500 million. The new opening date for the partially completed mall is “expected to be 2023”.
The mall is part of the larger Empire City Damansara (ECD1) project, which has a gross development value of RM5 billion, developed by Mammoth Empire Holdings Sdn Bhd (MEH). ECD 1 also comprises hotels, offices and apartments.
In 2019, MEH sold its 61-acre tract of land in Damansara Perdana, Selangor, to Exsim Development Sdn Bhd for RM760 million. The land was originally for the development of ECD2. Exsim also purchased another 4.5 acres adjacent to ECD1.
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