Indonesian property developer Riyadh Group Indonesia has revealed it will invest more than $400 million to expand its Malaysia business.
According to the company owner Bally Saputera Datuk Jano Sati in a Jakarta Globe report, the company has outlined plans to acquire controlling stakes in Malaysia-based companies such as Mainstay Properties and Horizon KLPO. This includes a 65% stake in Mainstay Properties, known for its ownership of the Space U8 Mall in Selangor. Similarly, Riyadh Group Indonesia plans to buy a 65% in Horizon KLPO, which also owns land in Sepang, Selangor.
If the acquisition is successful, a $15 million rebrand of Space U8 Mall will be undertaken, along with a shift in concept and marketing strategy. The new strategy aims to be a combination of the characters and identities of Malaysia and Indonesia. Bally added that the mall’s occupancy rate is currently under 50%, The Jakarta Globe report said.
Other changes include the transformation of the mall into one featuring Indonesian products, along with promoting Indonesia’s tourism ministry’s “Wonder Indonesia” campaign in Malaysia. Current initiatives for the mall include the invitation of retailers, supermarkets, entertainment and travel companies as well as F&B outlets.
Meanwhile, around $400 million will be invested into developing a block of properties such as factory outlets, hotels, apartments and leisure centres. Visitors of these properties will be able to get information on potential places of interests in Indonesia, Bally added.
Marketing Interactive has reached out to Riyadh Group Indonesia, Mainstay Properties and Pembinaan Tetap Teguh for comment.