SHAH ALAM, 19 Nov – Renowned Indonesian property developer Riyadh Group Indonesia (RGI) is expanding into Malaysia with the acquisition of controlling stakes in two Malaysian property companies.
Local property players Mainstay Holdings Sdn Bhd (Mainstay) and Pembinaan Tetap Teguh Sdn Bhd (PTT) today signed a Memorandum of Agreement (MoA) with RGI, which has committed to invest US$450 million as part of its venture into the Malaysian property market.
The resulting joint venture will see the transformation of the 55,000-square-metre Space U8 Mall in Bukit Jelutong in Shah Alam and enhancement of a mixed-development project in Serenia City in Sepang, Selangor.
Held at Mainstay’s eco-friendly Space U8 mall, the MoA for the cooperation agreement was formalised between RGI’s President Director Mr. Bally Saputra Dt. Janosati, and Managing Director of Mainstay / PTT Mr. Teo Swee Phin.
It was witnessed by Minister of Federal Territories, Yang Berhormat Tuan Haji Khalid bin Abd. Samad and attended by Mayor of Shah Alam, Yang Berbahagia Dato’ Ahmad Zaharin bin Mohd Saad.
“Riyadh’s investment and involvement is very much welcomed as it will provide us with a new perspective, and help differentiate our developments from those of our competitors,” commented Teo.
The agreement will see RGI acquiring a 65 per cent stake in Mainstay Properties Sdn Bhd (the subsidiary of Mainstay that owns Space U8) as well as a 65 per cent stake in PPT’s subsidiary, Horizon KLPO Sdn Bhd.
RGI’s acquisitions and subsequent investments will see the transformation of Space U8 into a commercial centre that will showcase the best of Indonesia, featuring various Indonesian brands and products, as well as culinary and entertainment outlets.
Horizon KLPO Sdn Bhd is the landowner of 10.35 hectares of land in Serenia City Sepang, which already has six units of industrial factories with a built-up area of 2,000m2 on 4,000m2 of land
Through Horizon KLPO, RGI will inject its expertise to develop a mixed-use development in Serenia City that will integrate both residential and commercial space.
The development will consist of a two-storey premium outlet village and six tower blocks, which will house a hotel, high-end serviced apartments, as well as leisure, medical & wellness centres.
“Malaysia may look like a challenging country to many Indonesian investors, but there are a lot of business opportunities for us here given the country’s progressiveness and business-friendly environment,” said Bally.