Thursday March 21, 2013
E&O sets sights on Japan as part of overseas expansion plan
By CHERYL POO
“We want to establish ourselves regionally,” Chan said at the signing ceremony of the company's latest project, a 51%-49% joint venture with Mitsui Fudosan Residential Co Ltd (Mitsui Residential) to develop The Mews Serviced Residences at Jalan Yap Kwan Seng in Kuala Lumpur.
“Our collaboration with Mitsui gives us leverage on the Japanese market and it is significant for us to be paired with them.
“Joint ventures with such commercial giants help and as both entities are strong names in the market, we are confident that there would be demand for our product.”
Mitsui Residential is a wholly-owned subsidiary of Mitsui Fudosan Co Ltd, Japan's largest property company with revenues of 1.34 trillion yen (RM43bil) as of last March. It collaborated with international property and hotel conglomerate City Development Ltd for the development of St Regis Hotel & Residences in Singapore five years ago.
The sale and purchase agreement for The Mews, which has a gross development value of RM400mil, would be effected via E&O's special-purpose vehicle KCB Holdings Sdn Bhd and Mitsui Residential's wholly-owned subsidiary SEA Investment Three Pte Ltd, which paid RM41.29mil for the land share.
The partnership is an extension of the developers' marketing collaboration two years ago to sell E&O's St Mary Residences in Kuala Lumpur and the Quayside Seafront Resort Condominiums in Penang to Mitsui's high net-worth clientele in Japan.
Today, Japanese buyers are the second-largest segment in E&O's foreign buyer profile.
In a press statement, Mitsui Fudosan Residential Overseas Business Department II general manager Ryousuke Uematsu acknowledged the success of the partnership and the affordability of the Malaysian property market.
The Mews would comprise 256 units, ranging between 922 sq ft and 2,623 sq ft in two towers built on 0.52 ha of freehold land. Targeted for completion by 2017, it would be launched next quarter.