IGB to develop RM6b Southkey Megamall in Johor (2 PICS)

It will be the second largest megamall project after Mid Valley City Kuala Lumpur

KUALA LUMPUR (March 28, 2012): IGB Corp Bhd, the developer of Mid Valley City, has joined hands with Selia Pantai Sdn Bhd to develop Southkey Megamall, a retail mall and mixed development in Johor with a gross development value (GDV) of RM6 billion.

Group managing director Robert Tan Chung Meng said the project is expected to take four to five years and has a gross development cost of RM2 billion to RM3 billion.

"It will be the second largest megamall project for us after Mid Valley, which more or less will replicate it but will be tailor made for people living there," he told reporters after signing the memorandum of understanding (MoU) with Selia Pantai here today.

Under the MoU, IGB Corp will establish a 70:30 joint venture with Selia Pantai, from which they will acquire 15ha of land within Southkey development to develop the megamall and other mixed development including hotel, high-end residences, office suites and car parks.

The paid-up capital of the Southkey Megamall Sdn Bhd is RM330 million.

Tan said the company will undertake full planning and study on the project before signing a definitive agreement within the next one to two months.

"We expect to finalise all the components and details on the project in the next six to nine months. Construction on the project will likely start next year," he said.

The proposed Southkey Megamall encompassed a total of six million sq ft of space, comprising 1.5 million sq ft of net lettable area with close to 7,000 car parks and capable of accommodating two major anchor tenants and some 400 to 500 retail outlets.

Selia Pantai, which is the developer of Southkey development, is a public-private smart partnership between Selia Group and the Johor state government via Kumpulan Prasarana Rakyat Johor Sdn Bhd.

Southkey, situated within the Johor Baru city Flagship Zone A of Iskandar Malaysia, is just five minutes drive from the Causeway. – Bernama