Starbucks to open Reserve store in Malaysia

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Starbucks Malaysia is about to open its first Reserve store.
Local franchise holder Berjaya Food plans to expand its existing Berjaya Times Square Starbucks outlet into the new up-market format.
The brand has entered into a sale and purchase agreement to secure an 829sqft space adjacent to the existing café for a reported RM12.43 million (US$3.05 million). The space was purchased by investment firm Deru Klasik for RM3.83 million in 2005. The purchase is expected to be completed by the end of this year.
Berjaya Food said the Starbucks Malaysia Reserve store will provide customers with a personalised, hand-crafted coffee experience, adding that the property acquisition should enable the group to benefit from any future capital appreciation.
Questions & Answers
Q.What is the purpose of expanding the Starbucks outlet at Berjaya Times Square?
What is the purpose of expanding the Starbucks outlet at Berjaya Times Square?
The expansion will transform the existing outlet into the first Starbucks Reserve store in Malaysia. This up-market format aims to offer customers a personalised, hand-crafted coffee experience.
Q.How much is Berjaya Food paying for the additional space for the Reserve store?
How much is Berjaya Food paying for the additional space for the Reserve store?
Berjaya Food is paying RM12.43 million, which is equivalent to US$3.05 million, for the 829 square feet space. This purchase is expected to be finalised by the end of the current year.
Q.What additional benefit does Berjaya Food expect from acquiring the property for the Reserve store?
What additional benefit does Berjaya Food expect from acquiring the property for the Reserve store?
Beyond establishing the new store format, Berjaya Food anticipates that the property acquisition will allow the group to benefit from any future capital appreciation of the real estate.
Q.How does the current purchase price compare to the previous sale of the same property?
How does the current purchase price compare to the previous sale of the same property?
The current purchase price of RM12.43 million is significantly higher than the RM3.83 million paid by investment firm Deru Klasik for the same space in 2005.
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