Parkson Holdings Bhd, a member of the Lion group of companies, will invest around RM3 billion for the development of 10 shopping malls in Malaysia by 2020, according to a report by The Business Times Malaysia.
Festival City Sdn Bhd, a subsidiary of Parkson Holdings Bhd, will develop and manage the shopping complexes, which will be located in major cities of Malaysia carrying the Festival City brandname.
The move, which is a natural extension of the company's enormous retail experience, will create a new source of income for the group, said Datuk Alfred Cheng, Group Managing Director.
"Parkson is in its 25th year of operations and has a lot of retail experience. In some of our overseas operations where we occupy a larger area, we are already operating ‘pseudo' shopping malls."
The company used the word ‘pseudo' as it already has seven shopping complexes in China where Parkson is the major occupant with smaller retailers, he explained.
"The focus (previously) was to build a network of Parkson (department store). Now that we have achieved more than 105 stores in Asia, we feel ready to also venture into shopping complexes," he said.
"Within the next three years, we expect to have two more malls and, within 10 years, 10 malls in total in Malaysia," he noted.
"Each mall will cost between RM250 million and RM300 million on the average or maybe even a little more," said Cheng in an interview with the Business Times during the launch of the first Festival City mall.
"We will only be in major cities for a start," he added.
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