CapitaLand Investment to advise Malaysian developer Astaka on retail strategy for RM1.2 billion Johor development

[SINGAPORE] CapitaLand Investment (CLI) will provide retail advisory services to Malaysian property developer Astaka Holdings for a new mixed-use project in Johor worth RM1.2 billion (S$364.5 million) in gross development value.

The project will comprise a lifestyle mall with 300,000 square feet of net lettable area, a five-star hotel with 250 rooms and 300 residential units, Astaka and CLI announced in a press release on Tuesday (Aug 19) evening.

It is part of the third phase of One Bukit Senyum, an integrated development unveiled in 2014 and touted as Johor Bahru’s new central business district.

CLI will advise Astaka on asset planning and the pre and post-opening stages of the project. Both companies inked a retail service advisory agreement on Tuesday, witnessed by Johor Chief Minister Onn Hafiz Ghazi.

Astaka chief executive Allen Khong noted that cross-border travel and retail activity are expected to increase with the formation of the Johor-Singapore Special Economic Zone (SEZ).

“We expect One Bukit Senyum to be a key beneficiary of these trends, thanks to our strategic location bordering Singapore and close proximity to the upcoming RTS Link,” he said, in reference to the Rapid Transit System that will connect Johor Bahru to the Republic.

Ervin Yeo, chief executive of commercial management at CLI, said that the company hopes to create a retail experience that appeals to both Johor residents and tourists.

Onn Hafiz noted that both companies’ partnership aligns with the Johor government’s efforts to raise cross-border business collaboration.

“We look forward to more private sector partnerships that will boost cooperation between Johor and Singapore across economic sectors, ultimately supporting the success of the Johor-Singapore SEZ,” he added.

Astaka shares ended Tuesday flat at S$0.058, while CLI shares were up 1.1 per cent at S$2.70.