ENCORP Bhd — controlled by Federal Land Development Authority (Felda) and Felda Investment Corp (FIC) — has received many enquiries for its Strand Mall, which is worth more than RM320 million, say sources.
They said the sale of Strand Mall, which is located in Kota Damansara, is part of the transformation plan for Felda and Encorp.
Felda, through FIC, has a 72.27 per cent stake in Encorp. It paid RM306.11 million for the shares in 2014.
Encorp’s second largest shareholder with a 13.63 per cent equity interest, or 40 million shares, is Anjakan Masyhur Sdn Bhd, a company linked to tycoon Tan Sri Syed Mokhtar Albukhary.
It is understood that Encorp is currently evaluating some of the enquiries, but the company is also in no hurry to sell as it plans to transform the mall with a new lease on life and to rejuvenate the area.
Strand Mall is located within Encorp Strand, a 18.6ha integrated commercial development developed by Encorp in a joint venture with Selangor State Development Corp (PKNS).
The RM1.4 billion development comprises Red Carpet Avenue, which is a 90-ft-wide and 800-ft-long covered, climate-controlled al fresco boulevard, Encorp Strand Garden Office and Encorp Strand Residences.
The mall, which has a net lettable area of 435,000 sq ft, opened in May 2014, marking Encorp’s first venture into retail development and management.
Kota Damansara was abuzz when the mall opened.
The mall has three levels of retail floors with over 200 shops, and 2,133 parking bays. Its tenancy comprises 30 per cent education, 30 per cent food and beverage (F&B) outlets, 25 per cent entertainment and 25 per cent fashion.
Among the key tenants are TGV Cinema, MR.DIY, Yamaha, Chi Fitness and Alpha Women Specialist Centre.
But luck hadn’t been good for Encorp as the mall lost its appeal to Sunway Giza located not too far away and as some tenants moved out.
Encorp chairman Hussein Ismail told NST Property that the company is in the process of transforming the mall.
Hussein said Encorp believes there is a lot of value to be unlocked and the company had been exploring available options to reposition Strand Mall and enhance its appeal.
“Our plan is to rebrand the mall by conceptualising it as a medical, wellness and lifestyle hub. As such, we are bringing in a new anchor tenant and to support the anchor tenant, we have wellness-related tenants such as those of pharmaceuticals and health supplement. All these will bring families and children to the mall.”
Strand Mall’s strength is its strategic location, and based on the increasingly-affluent and demographic, it aims to reposition itself.
Hussein said Encorp’s priority is to ensure that Strand Mall builds a good track record, sustainable income and great branding in consumers’ eyes.
He said Encorp has been getting enquiries, and a few negotiations are ongoing with operators and retailers keen to operate or to lease the mall.
“We are currently talking to them. If all goes well we hope to collaborate with them to operate the mall and bring in more exciting tenants, especially on the F&B side.”
Hussein said Strand Mall is currently 65 per cent occupied and he hopes it would achieve its full occupancy by year-end.
Encorp holds about 275ha of landbank which could last till 2029. Of this, about 15ha is located in Encorp Cahaya Alam in Shah Alam, 259ha in Bukit Katil, Melaka, and 1ha in Perth, Australia.