RM 4b business within a year seen
The developer of Kenaga Wholesale City (KWC), a one-stop centre for garment wholesalers, believes that within a year of operation, its tenants will have transacted business valued at RM4 billion.
KWC is a wholesale market concept akin to
The building, when ready in 2010, is expected to house most of the wholesalers already in the Jalan Kenanga area (behind the Jalan Pudu Fire Station) and to rope in new ones too.
Built by Kenanga Wholesale City Sdn Bhd, the 22-storey building will have a gross built-up of 1.8 million sq ft.
The relocated retailers together with new players, including those in the shoe and handbag business, are also expected to spur export business.
“The
“There are about 350 wholesale operators in the Kenanga area, who are operating from shop-houses. Their current transaction value is about RM2 billion, of which 30 per cent is exported and 70 per cent is for the local market.
“With the
Yee added that KWC hopes to not only double the value of the current business but to grow exports to a level that puts foreign and local demand on equal footing.
“We expect business transaction to be RM4 billion within a year of operations,” he said.
This will also be made possible by KWC working together with the Malaysia Garments Wholesale Merchants Association to promote the market overseas, targeting in particular
Kenanga Wholesale will be built on a 1.29ha piece of land, which used to be the site for Tenaga Nasional Bhd staff quarters.
The new building will have a gross development value of billion.
About 70 per cent of the KWC spaces have already been sold, with 10 per cent of the buyers being investors who have leased their property back to the developer.
Yee expects some 792 retail lots, measuring between 300 sq ft and 600 sq ft to be taken up within the next four to six months.
KWC will also continue to hold some of the floors which translate into 51per cent control of the mall space.
“This will ensure that the developer will be able to control and manage the property and safeguard the investment of the owners,” he said.
By Vasantha Ganesan
16th Feb 08, Biz News, New Straits Times