Retail in Asia

In Shops

Luxury retail outlets set to open in Kuala Lumpur

Horizon Outlet Shoppes Sdn. Bhd. has partnered with global property services firm DTZ in leasing Horizon’s landmark Kuala Lumpur International Outlets (KLIO) to global retailers.

When fully built at a cost of over MYR400 million (USD125.6 million), KLIO will offer shoppers 400,000 square feet of luxury oriented retail outlets in an upscale, elegant setting just 30 minutes drive from Kuala Lumpur (KL) city centre.

“We are extremely proud to partner with DTZ Malaysia for their global network and excellent local retailer relationships to complete the leasing of KLIO,” said Horizon Group International Director of Leasing, Greg Clarke. “DTZ comes on board to market our unique project, which boasts an upscale design, convenient location and value-oriented luxury retail – a superior combination of attributes which we fully expect will make it the most popular and groundbreaking outlet centre in South East Asia.”

Horizon Outlet Shoppes is a joint venture between the third-largest outlet centre developer in the US, Horizon Group Properties, and local construction and property developer, Mainstay Holdings Sdn. Bhd.

A Growth Horizon Surveys show that Malaysian shoppers have overwhelmingly identified retail outlets as a leading request for shopping. With an estimated Malaysian luxury market worth MYR3.95 billion (USD1.2 billion), according to the New York Times, KLIO will serve the growing market of demanding consumers seeking discounted value and luxury oriented brands.

With no luxury-oriented retail outlets currently serving the 7 million residents of KL and Selangor or its estimated 9.7 million annual tourists, Horizon is confident of filling this market niche. This number is expected to rise to over 15 million tourists per year, according to the Ministry of Tourism.

“We have been monitoring the outlet industry for more than 10 years and have had the opportunity to meet with the top international operators from Europe, Asia and the US,” said Ungku Suseelawati Omar, DTZ Malaysia’s Executive Director and Regional Head of Retail (South East Asia).

Retail is one of Malaysia’s fastest-growing sectors, expanding by 4.5 percent to MYR92 billion (USD28 billion) in 2013 according to research by Retail Group Malaysia. This is projected to grow to MYR97 billion (USD30.4 billion) in 2014.

The joint venture will begin construction this year, with a grand opening scheduled for 1 July 2016. The site is located 39 kilometres south of Kuala Lumpur and 10 kilometres north of KLIA.