SHAH ALAM: Renowned Indonesian property developer Riyadh Group Indonesia (RGI) has expanded into the Malaysian property market with the acquisition of controlling stakes in two property companies — Mainstay Holdings Sdn Bhd and Pembinaan Tetap Teguh Sdn Bhd (PTT).

The two property companies today signed a Memorandum of Agreement (MoA) with RGl, which has committed to investing US$450 million (US$1=RM4.18) as part of its venture into the Malaysian property market.

The resulting joint-venture will see the transformation of the 55,000-square metre Space U8 Mall in Bukit Jelutong, here, and an enhancement of the planned Horizon Village Outlets (HVO) development in Serenia City in Sepang, Selangor.

Held at Mainstay’s eco-friendly Space U8 mall, the MoA for the cooperation was formalised between RGl President Director, Bally Saputra Dt. Janosati, and Mainstay/PTT Managing Director, Teo Swee Phin, and witnessed by Federal Territories Minister, Khalid Abdul Samad.

“RGI’s acquisitions and subsequent investments will see the transformation of Space U8 into a commercial centre that will showcase the best of Indonesia, featuring various Indonesian brands and products, as well as culinary and entertainment outlets,” Bally told reporters here yesterday.

Meanwhile, Horizon KLPO Sdn Bhd is the landowner of 10.35 hectares of land in Serenia City and six units of factory lots.

The land was originally earmarked for the development of a premium outlet project, HVO, to be operated by Horizon Group Properties. –Bernama

The new HVO plan will consist of a two-storey premium outlet village and six tower blocks, which will house a hotel, high-end serviced apartments, as well as leisure, medical and wellness centres.

The additional components will complement and further enhance the value of the original HVO project, which has a gross development value of RM1.7 billion.

“Malaysia may look like a challenging country to many Indonesian investors, but there are a lot of business opportunities for us here given the country’s progressiveness and business-friendly environment,” said Bally. —Bernama