KUALA LUMPUR (Sept 21): Bina Darulaman Bhd (BDB)’s joint venture (JV) with Menteri Besar Kedah Inc (MBI Kedah) has entered into a concession agreement for a mixed development of premium brand outlets, with boutique hotels and other amenities in Bandar Padang Mat Sirat, Langkawi.
BDBMBI Langkawi Ventures Sdn Bhd, an 80:20 JV between BDB and MBI Kedah, has inked the agreement with Langkawi Development Board (LADA), an agency under the Ministry of Finance for the development across 40.98 acres located on land owned by LADA.
The project comprises premium and duty-free outlets, tourism and culture village, retail and F&B outlets, as well as boutique hotels, all under an eco-friendly concept.
In a separate statement, BDB group chief executive officer and president Faris Najhan Hashim said Phases 1 and 2 of the project will involve gross development value (GDV) of RM817 million.
“Development of Phase 1 dubbed as ‘Malaysia Designer Outlet’ where local fashion outlets, fusion base restaurants with fine-dining concepts as well as coffee houses will be developed from October 2021 and completed by July 2022.
“This phase will also underline the construction of 37 business outlets across 4.07 acres,” the statement said.
The premium outlet, spanning 29 acres, forms part of Phase 2. Development for the outlet is expected to complete by March 2024, the statement added.
The development of all phases shall be completed within the time frame of seven years and consists of Malaysian designer outlet with F&B, premium designer outlet (A), parking lots (five-storey), premium designer outlet (B), commercial units and service roads, amenities and green areas, the filing said.
Earlier, Finance Minister Tengku Datuk Seri Zafrul Aziz said in a social media post that the commercial development is expected to add 1,500 job opportunities and prospects of new businesses for the surrounding community.
“This commercial development comprises premium outlets, business outlets, and recreational facilities for tourists and local communities.
“Among key attractions for this commercial hub is its environmentally-friendly concept and building structures with iconic Malay cultural designs,” Tengku Zafrul said in his Instagram post earlier.
LADA will grant the concession company BDBMBI exclusive possession and rights over the project site for a concession period spanning 30 years from May 1, 2021.
The concession fee is RM1.02 million annually for 28 years from May 1, 2023, which will be reviewed every five years with LADA’s right of increment at 2%-5% subject to the performance of the concession company.
Shares of BDB settled unchanged at 43.5 sen, valuing the property group with a market capitalisation of RM130.64 million.