From left: Fiabci Asia- Pacific regional president Soelaeman Soemawinata, Janosati, Khalid, Teo and Mainstay and Pembinaan Tetap Teguh executive chairman Terry Teo. Photo by Mainstay Holdings
Riyadh Group Indonesia has expanded its presence in Malaysia with the acquisition of controlling stakes in two local property companies — Mainstay Holdings Sdn Bhd and Pembinaan Tetap Teguh Sdn Bhd.
Riyadh Group, Mainstay Holdings and Pembinaan Tetap Teguh signed a memorandum of agreement on Nov 11, with Riyadh Group committing to invest US$450 million as part of its venture into the property market here.
The MoA was signed by Riyadh Group president director Bally Saputra Dt. Janosati and Mainstay and Pembinaan Tetap Teguh managing director Teo Swee Phin. The event was witnessed by Federal Territories Minister Khalid Abdul Samad.
The agreement will see Riyadh Group acquiring a 65% stake each in Mainstay subsidiary Mainstay Properties Sdn Bhd and Pembinaan Tetap Teguh subsidiary Horizon KLPO Sdn Bhd.
Mainstay Properties owns the 55,000 sq m Space U8 Mall in Bukit Jelutong in Shah Alam, while Horizon KLPO owns 10.35ha in Serenia City, Sepang, and six units of factory lots.
Teo welcomed the Indonesian group’s investment and involvement as it would provide a new business perspective to Mainstay and Pembinaan Tetap Teguh.
“[The collaboration] helps differentiate our developments from those of our competitors. The Horizon Village Outlet (HVO) development in Sepang, for instance, will now be enhanced to include various complementary components,” he said.
The collaboration will also provide Mainstay and Pembinaan Tetap Teguh the opportunity to venture into the Indonesian market, he added.
Bally, meanwhile, said that while Malaysia may look like a challenging country to many Indonesian investors, there are a lot of business opportunities given the progressive and business-friendly environment.
The collaboration is set to transform Space U8 Mall into a commercial centre that will feature various Indonesian brands and products, as well as culinary and entertainment outlets.
Plans to enhance the HVO include a 2-storey premium outlet village and six tower blocks, which will house a hotel, high-end serviced apartments, and leisure, medical and wellness centres.
The additional components will complement and enhance the value of the original HVO project, initially earmarked for the development of a premium outlet project to be operated by US outlet shopping centre specialist Horizon Group Properties.