First phase of BBCC to kick off in Q3 2016

KUALA LUMPUR: Infrastructure work for the first phase of the Bukit Bintang City Centre ( BBCC) project, with a gross development cost (GDC) of RM4 billion, will kick off in the third quarter (Q3) of this year, BBCC Development Sdn Bhd Chief Executive Officer Datuk Richard Ong said.

The project, comprising a retail mall, an entertainment block, strata offices, two blocks of apartment and a four-star hotel, was expected to be launched in the middle of this year, he said.

Speaking to reporters at the signing of the heads of terms agreements and the memorandum of understanding ( MoU) yesterday, he said the first phase development was expected to be completed within four to five years, with the mall anticipated to start operations in early 2021.

BBCC inked heads of terms of agreements with Mitsui Fudosan Asia and Zepp Hall Network Inc as well as an MoU with international serviced residence operator, The Ascott Ltd, witnessed by the Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor.

“Early next year, we will begin to construct the mall with Mitsui and plan to develop it under the Mitsui Shopping Park LaLaport brand.

“The estimate GDC of the mall is RM1.6 billion and the construction cost will be shared on a 50:50 basis by Mitsui Fudosan Asia and BBCC consortium,” Ong said.

He also said the agreement set out the key commercial terms for the joint-venture (JV) between Mitsui Fudosan Asia and BBCC consortium, which comprises UDA Holdings Bhd, Eco World Development Group Bhd and Employees Provident Fund.

The consortium will undertake the development, ownership and operation of the mall through a JV company named Mall JVCo, proposed to be 50 per cent owned by Mitsui Fudosan Asia and the remaining by the shareholders of BBCC.

Meanwhile, the agreement with Zepp Hall, a unit of Sony Music Entertainment ( Japan) Inc., will see the development of a live concert hall with a capacity of 2,000 at an estimated GDC of RM400 million.

“The concert hall located within the entertainment block is situated next to the mall and is expected to be a top entertainment venue in the region.

“It will be operated by Zepp Hall and is networked with six existing concert halls in five major cities across Japan which host international artistes regularly,” Ong said.

On the MoU with The Ascott, Ong said no decision had been made yet but both parties were looking at exploring the feasibility and opportunity in managing the four- star hotel or serviced apartments. — Bernama