fahrenheit88 targets over RM250m in retail sales

KUALA LUMPUR: The newly opened fahrenheit88 is targeting over RM250 million in retail sales revenue a year from its tenants, said Kuala Lumpur Pavilion Sdn Bhd retail chief executive officer Joyce Yap.

This target was based on the average revenue generated psf within the Bukit Bintang area, which ranged from RM850 to RM935 psf per year multiplied with the total net lettable area of about 300,000 sq ft, she said after the soft launch of the mall on Wednesday, Sept 15.

"Once we hit that range, we know we are doing as well as the market should be performing," she said.

Yap said returns from leasing the mall out will be derived from total retail sales, but declined to give a percentage.

However, she noted that the percentage would be subject to various factors, including tenants' needs.

Kuala Lumpur Pavilion is in charge of developing, managing and planning the retail concept of fahrenheit88.

To date, 95% of the mall has been leased out. It counts Japanese casualwear brand UNIQLO and consumer electronics hub Signature IT as its anchor tenants.

Currently, 65% of its shops have started operations, and more are slated to open progressively.

By its official launch date on Nov 23, all shops are expected to have begun trading.

Meanwhile, commenting on the outlook of the retail property market, Yap said that despite expectations of a large supply of retail space in the pipeline this year, its success would boil down to the unique qualities and positioning of individual malls as well as its promotional efforts.

"All landlords will not drive their retailers out of business. All malls are unique in their own way. You cannot change a lot just because your neighbour chooses to charge a lot," she said.