PETALING JAYA: Aeon Co (M) Bhd, which managed the old wing of the 1Utama Shopping Complex for 15 years, is expected to sign a fixed nine-year lease agreement with mall’s landlord, See Hoy Chan Holdings (SHC).
SHC director Datuk Teo Chiang Kok, said it was a “matter of dotting the i’s and crossing the t’s” for the contract and that the lease could start running on August 22 2011 or earlier.
Aeon, which operates department stores cum supermarkets under the Jusco brand, saw its 15-year management agreement for the 2 million sq ft mall come to an end last August.
SHC, which has been managing the 3 million sq ft 1Utama New Wing since its opening in 2003, feels that it has the expertise now to run the old wing too.
Teo, in an interview with Business Times in Bandar Utama yesterday, added that Aeon will occupy the same amount of retail space as before of 320,000 sq ft.
When asked about the rental income that SHC will get as it takes over the management of the mall from Aeon, Teo said: “We will triple our income from Aeon by them becoming our tenant.”
According to him, the supermarket and deli will move to the mall extension where the Jusco Home Centre was located and Jusco’s retail area will spread over four floors.
“All of Aeon’s businesses within 1Utama will be amalgamated into one location,” he said. Aeon is now renovating and doing fit out for its store and is expected to reopen its department store in August 2011. It closed after the Chinese New Year this year. The supermarket is, however, still operating.
Interestingly, 1Utama will also house two new major Japanese retailers within the shopping complex. The entire 1Utama old wing is currently undergoing a renovation.
– Business Times