This article analyzes Capital Land's recent moves in Johor Bahru, Malaysia, focusing on their partnership with The Ascott Limited and Astaka Holdings. These developments signal a significant investment and a strategic approach to the region's growing potential.
Ascott's Entry into Coronation Square
The Escott Coronation Square Johor Bahru
On August 8th, The Ascott Limited, a renowned hotel brand under Capital Land, announced the signing of a deal to establish Ascott Coronation Square Johor Bahru. This five-star hotel, featuring 207 rooms, is expected to open in the second half of 2029.
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This marks Ascott's sixth hotel in Malaysia and its first venture into the Johor market. The existing five hotels are located in Kuala Lumpur and Penang.
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The announcement was met with initial skepticism but has been confirmed by multiple reliable sources.
Significance for Coronation Square
Ascott's presence is viewed as a major positive development for Coronation Square, a project that has faced challenges in the past. The introduction of a reputable hotel brand can revitalize the area and attract more tourism. This new development of a mixed-use complex aims to shift the city's focus towards a more balanced tourism and financial atmosphere.
CapitaLand's Retail Advisory Role for OBS Mall
Partnership with Astaka Holdings
On August 19th, Capital Land Investment Limited signed a Retail Advisory Service Agreement with Astaka Holdings, the developer behind the prominent buildings in Johor.
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Capital Land will provide planning and management expertise for the OBS Mall, the retail component of Astaka Holdings' One Bukit Senyum mixed development.
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The mall will offer approximately 300,000 sqft of retail space, comparable to Sunway Square Mall and the retail space at the RTS Link Bukit Cagah Station.
A Strategic Alliance
This partnership is seen as a strong alliance between two companies with complementary expertise. Capital Land's retail expertise combined with Astaka's local presence promises a successful retail development for the region.
The Relationship Between Capital Land and Ascott Limited
Capital Land: A Singapore-Based Giant
Capital Land is a publicly listed asset management company based in Singapore with a global presence across 45 countries and 270 cities. In Singapore alone, they manage 15 shopping malls, including prominent names like Ion Orchard and Raffles City Singapore.
Ascott's History and Acquisition
Ascott was founded in Singapore in 1984 and established itself as a high-end service apartment and hotel operator. In 2000, Ascott merged with Somerset Holdings, expanding its portfolio. In 2021, after Capital Land Group resumed its operations and was listed in Singapore, Ascott became Capital Land's dedicated accommodation business unit.
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This acquisition has allowed Ascott to manage over 990 properties and 170,000 units across more than 230 cities.
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Ascott manages 14 brands, including CITADINES, SUMMERSET, and AWKWARD.
Synergistic Benefits
Capital Land's backing has provided Ascott with the resources and reach to expand its global footprint.
Capital Land's Strategic Vision for Johor Bahru
Rationale Behind the Investment
Capital Land's investment in Johor Bahru is closely linked to the development of the RTS Link (Rapid Transit System) and the Johor-Singapore Special Economic Zone (JS-SEZ). Given Xingshan City Center's position as a Global Services Hub, Capital Land's strategy of introducing a high-end shopping mall and hotel brand is considered well-timed and sensible.
Seizing the Opportunity
Capital Land's entry into the market now allows them to secure potential targets before the competition intensifies after the RTS Link becomes operational and the JS-SEZ begins to generate momentum. This proactive approach positions Capital Land favorably for future growth in the region.
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