SHAH ALAM: Parkson Corp Sdn Bhd will be taking up 120,000 sq ft of space at Setia City Mall in Setia Alam, Shah Alam.

Parkson is the sole department store and one of the key anchor retailers of the 700,000 sq ft retail development by S P Setia Bhd and Lend Lease Asian Retail Investment Fund 2 (ARIF).

S P Setia president and chief executive officer Tan Sri Liew Kee Sin said Setia City Mall would be developed in two phases.

“The total cost for Phase 1 is RM450 million,” he told reporters after the signing ceremony between S P Setia, Parkson and Greenhill Resources Sdn Bhd.

The mall aims to enhance Shah Alam’s shopping and leisure product offerings and provide destinational appeal for shoppers across Malaysia, with a focus on the wider Klang Valley. The mall will be designed, marketed and managed by Greenhill Resources Sdn Bhd, a joint-venture entity between S P Setia and ARIF.

Construction of Phase 1 begins soon, with opening sometime during Christmas 2011. The construction of Phase 2 would start three years from now, Liew said.

Setia City Mall will have over 200 local and international specialty stores, a number of major anchor retailers, an entertainment precinct and a large park. It will also have efficient access to over 2,000 car parks.

Greenhill Resources development director, Robert Spinks said Setia City Mall will host seven to eight anchor retailers and Parkson would be the largest.

Designed by Lend Lease, the mall will support S P Setia’s vision for Setia Alam, which already has over 20,000 residents. This is expected to rise to over 50,000 by the time the mall opens. The mall will also set the benchmark in sustainable retail development, being the first and only mall to be included under the Green Building Index’s pilot accreditation scheme.

“Parkson is looking to add 15% more space each year and the venture into Setia City Mall as an anchor tenant fits perfectly into its strategy. We believe three to five years down the road, this store will become one of our Top 10 stores in terms of turnover,” said Parkson’s managing director, Alfred Cheng. Parkson has over 35 stores nationwide.

“The 15% every year translates to roughly two to three stores in Malaysia, about three to four stores in Vietnam and about five to six stores in China,” Cheng added.

To date, the Parkson Retail Group manages and operates a total of 86 stores in three countries -- Malaysia, China and Vietnam. Cheng said Parkson will open its first store in Phnom Penh, Cambodia, towards end-2010 or early 2011.