REITS

Although only 15 acres of the i-City land has been developed as at end of 2012, i-City is today recognized as a catalyst in the transformation of Shah Alam into an international City. Thus in 2011, under a Management and Development Agreement entered into between the State, Majlis Bandaraya Shah Alam and i-City, the approved built-up area for i-City was increased to 13 million sq ft resulting in RM 5 billion Gross Development Value for the development. I-City was also designated as a gated and guarded community with i-City being responsible for all the township services.

The Group is also planning to develop 8 Kia Peng @KLCC, a luxury/branded residences condominium project in the vicinity of the Kuala Lumpur City Centre as well as i-City South, a 7 acres data centre complex opposite the existing i-City site on the other side of the Federal Highway.

We have also laid a strong foundation for the future with our shopping mall, the Best Western i-City hotel and the car parks development.

 

Shopping Mall

In July 2013, the Group entered into a joint venture agreement with Central Pattana Public Company Limited of Thailand ("CPN"), to jointly develop a super regional mall, CentralPlaza@i-City. CPN is Thailand’s largest retail developer with global credential.

Upon its completion in 2017, the RM764 million CentralPlaza@i-City will stand out as the biggest and most modern shopping mall project in the capital city of Selangor.

Currently in the design stage, the project will be developed on a freehold land plot of 11.12 acres with gross floor area of around 1.5 million sq ft and net leasable area of around 1 million sq ft.

 

Best Western International

In October 2013, the Group entered into a strategic alliance with premier hospitality brand Best Western International Inc.

Best Western International Inc is “The World’S Largest Hotel Chain”, with 4,000 independently owned and operated hotels. Based in Phoenix, Arizona, Best Western offers more than 308,692 quality guest rooms located in 80 countries and territories throughout the world. 

We deem the Best Western i-City hotel as the start of our third building block in the development of i-City as a tourism destination. The three (3) tourism components are the Leisure Park @i-City theme park, the CentralPlaza@i-City super regional mall and the three (3) hotels for i-City.

Inaugurated in end 2014, 216 rooms 3 star Best Western i-City hotel enhances the number of visitors to i-City’s leisure park and attractions given visitors can now opt to stay within the vicinity of Leisure Park @i-City theme park.

 

Car parks

An integral part of i-Suite@i-City project is the development of 6,500 bays of car parks that the Group will keep as long term investment.  

As of today, i-City has about 1,500 car parks. They are valued at RM30,000 per bay as at 31 December 2013 due to the high revenue they could generate. As a whole, the car park plan is a significant value enhancement component of i-City as generally the car park value is not factored in as part of the Gross Development Value (GDV).  

The revenue derived from entrance of vehicles in i-City is currently about RM275 per bay per month. A significant portion of this is driven by the visitors to Leisure Park@i-City theme park.  We expect this revenue will build up as we drive traffic to the theme park.  At the same time, an analysis of the i-SOHO buyers profile suggests that the i-SOHO in i-City will be more of an office unit with overnight living rather than a residential unit used as an office.  This means that the i-SOHO development can also be a significant vehicle traffic contributor.  But more importantly, as i-City is a night tourism spot, the office traffic will help to improve the utilisation of each bay.  And undoubtedly we expect a leap in traffic volume when the shopping mall opens.