PETALING JAYA: The Naza group and international venue management company SMG Europe Holdings Ltd are said to be in the running to become the operator of the Malaysia International Trade and Exhibition Centre (Mitec).
Sources said that Naza Corp Holdings Sdn Bhd officially put in a bid in July to run the centre through its subsidiary Prisma Galeri for the concession that could run up to 20 years.
Towards this end, the group had also entered into an agreement with SMG Europe for SMG Venue Management Asia Sdn Bhd to be the international operator of the venue.
“By virtue of the Naza group being the builder of the convention centre, it is a strong contender,” said a source.
The Malaysia External Trade Development Corp (Matrade), which had put in a request for proposal in its search for an operator, is expected to make a decision in the next few months.
Nada TTDI, the property development arm of the Naza group that is constructing the expo centre, is on track to deliver Mitec to Matrade by the middle of next year.
Work on Mitec began in late 2012 and is now 80% complete.
After the hand-over, the party that wins the concession to operate the convention centre is expected to spend six to nine months to install the fit-outs for the building.
“This means that the centre will be operational by mid-2017,” said a source.
SMG is a leader in the management and operation of venues including convention and exhibition centres, live entertainment and sports arenas, as well as performing arts centres. It currently manages 243 venues globally.
In 2009, the Naza group entered into a RM628mil building-for-land deal with the Government to construct the Matrade expo centre.
The centre and other projects planned on the 75-acre land had an estimated gross development value of RM20bil, and would be leased to Naza for 99 years.
Mitec will have a gross floor area of 1.6 million sq ft, which is about 10 times the size of the Kuala Lumpur Convention Centre (KLCC). It will be able to accommodate 40,000 visitors.
It has 522,268 sq ft in rentable space with 11 exhibition halls, a multi-purpose hall, meeting and conference rooms, media facilities, VIP lounges, a food court as well as food and beverage outlets.
Sources say it is projected that Mitec could deliver RM174mil in economic impact to Malaysia’s gross domestic product per annum when completed and contribute in in terms of 472 jobs.
Located along Jalan Duta and linked to Menara Matrade, Mitec is the first of three phases for the KL Metropolis development, which will also comprise condominiums and office towers, hotels and an international retail centre as well as a landmark tower.
It was reported that 260-room four-star international business hotel would be part of the KL Metropolis development. It would be the first entry into the Malaysian market for the hotel brand.
The KLCC has been one of the go-to places for conventions, but it has capacity constraints for larger scale events exceeding 3,000 people. The other centre in the city is the Putra World Trade Centre.
Mitec is positioned as a viable alternative to the KLCC. The remaining phases of KL Metropolis is expected to be completed by 2025 and would be located close to the MRT Circle Line 3, in which work is expected to start in 2016.
Naza is also in talks for two en-bloc sale of its officer towers located across Mitec, which reportedly could be sold at RM1,000 per sq ft.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed had said the centre would become an epicentre from meetings, incentives, conventions and exhibitions activities. Asean’s trade exhibition industry is expected to grow at an annual pace of 10% over the next three to four years, especially with the implementation of the Asean Economic Community initiatives.
Naza-SMG JV leads race to operate Mitec
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