Mitsui Fudosan’s First Housing Sales Business Project in Malaysia
Decided to Participate in the Mews Project (Tentative Name)
March 21, 2013
Mitsui Fudosan Residential Co., Ltd.
Mitsui Fudosan Residential Co., Ltd. announced today that it has entered into a basic business agreement with Eastern & Oriental Berhad (E&O), subsequent to deciding to participate with E&O in the Mews Project (tentative name) housing sales business project in Kuala Lumpur, Malaysia. The development of 256 condominium units is scheduled to be completed in November 2016.
The property is located in the Kuala Lumpur City Centre (KLCC), in the center of Malaysia’s capital city. This location is ideal in terms of transportation access, being a convenient walking distance from PETRONAS Twin Towers, a landmark of Malaysia. A project promotion company for the condominium will be jointly funded by E&O and Mitsui Fudosan Residential, with the investment ratio of 51% and 49%, respectively. E&O, which is a Malaysian listed company, is a leading local developer involved in many luxury condominium developments in central Kuala Lumpur.
This project is our first housing sales business project in Malaysia. Malaysia has a high level of urban infrastructure development, and also both the general population and the wealthy segment are expected to increase in the future. In addition, we recognize that the housing market is a promising market, which is expected to expand and has few restrictions on residential purchases by non-Malaysian nationals. We will continue to promote business development in accordance with local business practices, making the most of our development, sales and operation know-how accumulated in the course of conducting the housing business in Japan.
In Asia, the Mitsui Fudosan Group has been doing business since 1972, starting in Singapore through TID Pte. Ltd., a joint-venture company that we established together with the Hong Leong Group and which has been involved in the housing sales business for over 40 years. Four years ago, we started the housing sales business in China, and we are currently expanding the business in cities such as Shanghai, Tianjin, Dalian, Liaoning Province, and Foshan, Guangdong Province. We also opened an outlet mall in Ningbo, Zhejiang Province, in 2011.
Our overseas business is positioned as one of the growth areas for the Mitsui Fudosan Group. In the future we will continue to aggressively expand the housing sales business in South East Asia, where demand is expanding due to the ongoing economic growth and urbanization. As regards retail properties, we will develop and operate an outlet mall at Kuala Lumpur International Airport (phase 1 is scheduled to open in winter 2014).
In line with Innovation 2017 (our long-term business plan covering FY2012 to FY2017), in Europe, the U.S. and Asia, Mitsui Fudosan plans to make investments in overseas operations of approximately 500 billion yen by FY2017.
Overview of Condominium
|Yap Kwan Seng Road, Kuala Lumpur, Malaysia
|A 10 minute walk from KLCC Station, LRT Line
|Approx. 5,211 m2
|Approx. 27,786 m2
|Number of Condominiums
|38 floors above ground, 1 underground floor
|Sales scheduled to start in April 2013
Start of main construction October 2013
Completion (planned) November 2016
E&O is a listed developer company in Malaysia with approximately 52 billion yen market capitalization (as of March 2013). E&O has renovated and opened the Eastern & Oriental Hotel, Penang Island, after purchasing it. The company specializes in the development of luxury condominiums in central Kuala Lumpur, and has completed development projects such as the Dua Residency (288 units) in 2007, and St Mary Residences (655 units) in 2012, both in central Kuala Lumpur.