LaLaport Kuala Lumpur mall breaks ground

2 min readUpdated May 28, 2025Jun 23, 20171:15 AM

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Mitsui Fudosan, Japan’s largest integrated developer, broke ground on Tuesday on the Mitsui Shopping Park LaLaport Kuala Lumpur, one of Southeast Asia’s largest retail spaces under development.

The mall is being constructed in the city center on the site of Pudu Prison, a colonial era facility demolished as part of a government growth drive.

When completed in 2021, the five-story mall will offer 82,600 sq. meters of leasable space — enough for more than 300 retail outlets. The project has an estimated cost of 1.6 billion ringgit ($374 million), and is a 50:50 joint venture between Mitsui Fudosan Asia and BBCC Development. The latter is collectively owned by Malaysia’s state-owned Employees Provident Fund, UDA Holdings and prirvately held Eco World Development Group.

The project forms part of a bigger real estate development, the Bukit Bintang City Centre (BBCC), which includes hotels, apartments, and offices in a built-up area of over 600,000 sq. meters with a gross development value of 8.7 billion ringgit.

“I am confident that BBCC will succeed in further uplifting the image of Kuala Lumpur as an international modern metropolis,” said Prime Minister Najib Razak at the ceremony.

Mitsui Fudosan Asia will lead the development, leasing, and operations drawing on its experience managing LaLaport malls in Japan. The group is aiming for a new urban lifestyle with innovative approaches to entertainment and education, according to Akihiko Funaoka, a senior Mitsui Fudosan executive. Among the attractions will be Zepp Kuala Lumpur, a concert hall and entertainment hub with 2,500 seats equipped by Sony Music Entertainment.

Mitsui Fudosan’s existing regional investment is primarily in operating apartments, including in Malaysia. The shift to retail is a response to the growing middle-income market, according to Takehito Fukui, the company’s managing director for Malaysia.

Isetan The Japan Store has already introduced some similar concepts to the Malaysian capital. Operated by Isetan Mitsukoshi, its six-story mall covers 11,000 sq. meters with dining and clothing outlets, and an area devoted to art and culture.

Malaysian-owned 1 Utama Shopping Centre meanwhile includes a baseball batting cage and scuba diving center among its tenants.

Mitsui Fudosan already runs Mitsui Outlet Park near Kuala Lumpur International Airport. The branded outlet store opened in 2015, and has traded briskly with locals and tourists from around Asia. According to Fukui, revenue was up 15% on 2016 in the first five months of the year.

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What this means

Mitsui Fudosan's substantial investment in LaLaport Kuala Lumpur signals a bold pivot into Southeast Asian retail, building on its existing success with Mitsui Outlet Park in Malaysia. This move directly challenges local players like 1 Utama, which already incorporates experiential elements, by introducing a larger-scale, integrated lifestyle concept with features like Zepp Kuala Lumpur. While the venture uses Mitsui Fudosan's Japan expertise and targets a growing middle-income market, the significant size and cost present risks in an increasingly competitive landscape. The project is likely to succeed given its strategic location and developer's experience, but will pressure other malls to innovate their entertainment offerings. We await details on tenant announcements.

Sarah Chen

Questions & Answers

When is the new LaLaport Kuala Lumpur mall expected to be finished?

The Mitsui Shopping Park LaLaport Kuala Lumpur mall is projected to be completed in 2021. It will be a five-story facility, offering substantial retail space within the city centre.

What is the estimated total cost of developing the LaLaport Kuala Lumpur mall?

The project to build the LaLaport Kuala Lumpur mall has an estimated cost of 1.6 billion ringgit. This is equivalent to $374 million, and it is a 50:50 joint venture.

Which companies are partners in the joint venture for this mall development?

The mall development is a 50:50 joint venture between Mitsui Fudosan Asia and BBCC Development. BBCC Development is owned by Malaysia’s state-owned Employees Provident Fund, UDA Holdings, and Eco World Development Group.

What attractions are planned for the new LaLaport Kuala Lumpur mall?

The mall aims for a new urban lifestyle with innovative approaches. Among the planned attractions is Zepp Kuala Lumpur, which will be a concert hall and entertainment hub with 2,500 seats, equipped by Sony Music Entertainment.

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