The other day, The Edge business weekly (10-16 April 2017) carried a frontpage report stating that E & O was in talks to sell Straits Quay Mall, which it described as a “seven-year-old loss-making freehold property”. (How it got freehold status for the reclaimed land of Seri Tanjung Pinang should be the subject of another discussion.)
The report said E & O did not confirm or deny the talks. The mall, a key component of the Seri Tanjung Pinang land reclamation project, has 270,000 sq feet of lettable space and has a net book value of RM233m.
This reminded me of a report I read in the Edge (8-14 August 2016) which suggested it was “crunch time for malls” in Malaysia. At that time, Perda City Mall in Bukit Mertajam had just shut down and a couple of other malls in KL had also closed down for “redevelopment”. The Edge also listed out a dozen malls which had been put up for sale or had been sold in previous months.
I can think of a few factors that would affect business at malls: