Commercial & Industrial Property News Update

Indonesia - Japan's AEON Enters Indonesia

March 11, 2013

AEON Mall, a major Japanese shopping mall chain, will jointly develop its first retail outlet in BSD City, Tangerang with PT Sinar Mas Land beginning in mid-2013. 

The rising affluence of Indonesian consumers has attracted Japan's AEON Mall to launch its first store in the country. The mall developer announced that it will partner local company PT Sinar Mas Land for the flagship project which is slated to take place by the middle of the year.

To be located in BSD City, Tangerang, the retail property will be built and operated by PT AMSL Indonesia, a joint-venture between AEON Mall and PT Sinar Mas Land. The former will hold a 67% stake, while the latter, 33%.

The flagship store will feature a total of 125,000 sq m of net lettable area on a site measuring 100,000 sq m. It is estimated to cost USD 200 million, with the project to be mainly funded by AEON.

Said Michael Widjaja, CEO of Sinar Mas Land, “Development of this four-story suburban mall will start in mid-2013. The construction is scheduled for completion by the end of 2014.” He added that both firms are targeting to start 20 AEON malls throughout Indonesia's growing middle-class residential areas.

CEO of AEON Mall Soichi Okazaki elaborated that the joint-venture would heavily target the suburban markets, which host a large population of young middle-income families. “We are targeting these new families as our potential customer base,” he said.

Okazaki also said that AEON MALL BSD City will house 190 tenants, including its General Merchandise Store (GMS), which sells the Topvalu range of house-brand items.

"The GSM will be based on the one-stop-shop concept,” he said, adding that shoppers could find items ranging from food to clothing in the store.

In addition to BSD City – home to 150,000 residents – AEON and Sinar Mas are seeking to build another AEON Mall in the Kota Deltamas township in Bekasi, West Java. The proposed mall will be twice as large as the flagship outlet.

“The development of this mall is still in the planning phase. However, we aim to inaugurate the mall in 2015,” said Okazaki.

Tags: Indonesia, Shop for rent, Income properties, Commercial real estate 

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