KUALA LUMPUR: The Setia City Mall in S P Setia Bhd's Setia Alam township has signed on tenants for over 75% of its net lettable area (NLA) to date. The mall has over 740,000 sq ft NLA. About 160 tenants out of a possible 250 have already signed on a year before the mall's opening.
The mall at the 4,000-acre (1,618.7ha) Setia Alam township in Shah Alam is a 50:50 joint-venture between S P Setia with Asian Retail Investment Fund (Arif), managed by Lend Lease Investment Management. Together they formed Greenhill Resources, which manages and markets the mall.
"Setia City Mall and the central park it is connected to is a key step in achieving our vision for Setia Alam, and when the doors open next year, Setia City Mall will become a vibrant hub of activity for the residents of both Setia Alam and Setia Eco Park," said S P Setia executive vice-president Khor Chap Jen during a breakfast meeting with its tenants on Thursday.
The gross development cost to build the mall is about RM450 million.
Echoing Khor's comments, Tan Sri Liew Kee Sin, CEO and president of S P Setia, said: "We are a developer not a retailer. So we partnered Lend Lease in a win-win partnership that will make Setia Alam a very exciting place to be."
The four-storey mall's anchor tenants include Parkson, Golden Screen Cinemas, Urbanfresh supermarket, Harvey Norman, Fitness First, Courts and Wangsa Bowl.
"The rental rates will range from RM5 to RM30 per sq ft/month," said Robert Spinks, Setia City Mall's development director. "This will depend on the location, lot size and type of tenancy as some retailers can pay higher rates than others so it is hard to pick an average rental rate."
Setia City Mall sits on 18 acres and will provide diverse shopping options, an entertainment precinct, alfresco dining and outdoor facilities such as a park, lake and a children's playground.
"Setia City Mall will be more than just another place to shop," said Rod Leaver, Lend Lease Asia's CEO. "It will form the focal point of a thriving new community here."
The forecast sales growth for the new mall once it is officially open in 2012 is 6% to 7% annually which is the average rate for the region, Spinks said. The biggest tenant is Parkson that will take up 120,000 sq ft. Fitness First, which will be opening its 14th outlet in the country, takes up 17,000 sq ft and according to Richard Hutson, sales director for Fitness First Asia, this outlet will have a freestyle area, where exercises will be related to everyday type activities.
Padini Holdings Bhd will also feature in the new mall. According to its managing director Yong Pang Chaun, there will be two stores in the mall, namely Padini Concept Store, which will take up 15,000 sq ft and its Brands Outlet taking up 7,000 sq ft.
A RM60 million convention centre will also be built in Setia Alam, Khor said, to hold exhibitions and seminars, and will complement the mall's business. It is scheduled to be completed about the same time as Setia City Mall.
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