GEORGE TOWN: Developer Ideal Group Bhd has proposed to acquire one of the main shopping malls here – 1st Avenue Mall from a fellow real estate company – the Belleview Group with a cash consideration of RM153 million.
The offer was made through its holding company – Ideal United Bintang International Bhd (IUBIB).
The property is located next to Komtar – the state administrative centre and it sits on 10,155 sqm of prime real estate area here.
IUBIB in a statement also announced the proposed diversification of the company’s businesses to include property investment holdings other than its core activities of building housing and commercial units, mainly in Penang.
1st Avenue is a nine-year-old property with 407,076 sq ft of net lettable space.
An EGM will be held to seek IUBIB shareholders’ approval for the mooted diversification in conjunction with the proposed acquisition.
Ideal Group intends to continue renting out 1st Avenue as a source of the main income and it also recognises that the property has potential to be redeveloped in future as it is in a prime location within George Town.
Despite the moderate outlook of the economy and the softening of the property market, the group takes a favorable view of the prospects of the property, which is located in a prime area on the island.