Sungei Wang Plaza to gain from new link bridge
KUCHING: Analysts laud CapitaMall Malaysia Trust’s ( CMMT) upcoming link bridge between Sungei Wang Plaza and the existing pedestrian bridge leading to Berjaya Times Square, including inter alia the construction of external escalators located at the side facade of Sungei Wang Plaza.
According to AllianceDBS Research Sdn Bhd (AllianceDBS Research), this comes after MTrustee, trustee of CMMT, entered into a Joint Collaboration Agreement (JCA) with K Two Realty Holding Sdn Bhd to fund, plan, project manage, construct and complete the construction of said bridge.
The estimated construction cost of the project is RM8.5 million and the contribution of each party shall initially be RM4.25 million, to be made in progressive payments to meet thecost of the project.
The project is estimated to be completed by the final quarter of 2018.
“We deem this positive for the group as it will be able to improve the connectivity of Sungei Wang Plaza, thus boosting shopper traffic,” it said in a report.
“Sungei Wang Plaza may be able to record positive rental reversion from the completion of the Mass Rapid Transit construction by mid-2017, coupled with the link bridge.
“Note that management has revised down its rental reversion by about 39 per cent in the first quarter of financial year 2017, to keep tenants at Sungei Wang Plaza.”
Upon completion, Sungei Wang Plaza Management Corporation will take over the control and use as well as subsequent maintenance of the link bridge and external escalators.
CMMT’s contribution will be solely funded by borrowings.