Thursday, May 28, 2009

The fall of Jaya Supermarket

Jaya Supermarket, is a well-known landmark in Section 14, Petaling Jaya.

Built in 1974, it was one of the first supermarkets in Petaling Jaya.

It began with the Cold Storage chain before becoming the Giant supermarket a few years ago.

The 35-year-old Jaya Supermarket has a net lettable area (NLA) of 136,000 sq ft which includes the 10-storey Menara Cold Storage adjoining the 4-storey shopping Centre.

Jaya Shopping Centre was acquired in February 2006 for RM100 million by CIMB-Mapletree Management Sdn Bhd (CMM).

CMM is a 60:40 joint-venture between CIMB Real Estate Sdn Bhd and Mapletree Capital Management Pte Ltd, a wholly owned subsidiary of Maple Investments Pte Ltd, a leading Singapore real estate company.

Maple Investments is owned by Temasek Holdings, a Singapore GIC.

CMM then planned to demolish the 4-storey shopping centre and replace it with a new mall which will be six storeys high with 300,000 sq ft of Net Lettable Area (NLA) of purely retail centre.

CMM was confident that the redevelopment will be successful, considering that their Singapore partner has vast experience in retail centres.

Mapletree Investments has over S$6.2 billion (about RM15 billion) worth of assets under their management, including VivoCity, Singapore’s largest retail and lifestyle destinations.

CMM said they will be leveraging on Mapletree’s network of retailers.


However, CMM could not leverage on Mapletree's network of contractors and expert demolition men.

Today, Jaya Supermarket collapse!

One worker was killed and two others hurt when the landmark six-storey Jaya Supermarket in Petaling Jaya collapsed after a demolition exercise went awry. The workers were Indonesians.

At press time, six other workers were still reported missing under the debris. They are assumed to be still alive.

An eyewitness Syed Mohammad Aidid said he heard a loud roar like that of a thunder while driving pass the area.

“The building started collapsing when his car was just next to it! Brownish red dust, like smoke & debris came falling down on the car, flash back of World Trade Centre movie...never be so scared in my life!” he recalled.

“I saw in front of me several cars but they managed to escape. I just floored the accelerator but some of the rubble hit my car and dented it. I was shaken with fear and prayed that I would be out of harm’s way,” he said.

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Read more news at: Malaysiakini and The Malaysian Insider

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15 comments:

Wood said...

Just wonder why CMM will put in so much money for such a small mall.

The figures just do not make sense.
Cost of land = RM100 million. Assuming the cost of construction = RM100 million which is very cheap. The total cost excluding interest will be RM200million.

Assuming the net rental is RM20 psf(which is quite good) after less maintanence which assume that it is 100% rented out.

The net rental income is only RM6 million ie 3.0% excluding interest. The returns is pathetic.

Tidak Jaya said...

Does the net lettable area include the common areas?

Anonymous said...

Ever since PKR and the gang rules Selangor, the state had been riddled with disasters. TANAH RUNTUH BKT ANTARABANGSA and now Bangunan Runtuh.
Hmmmmmm. maybe 3 disasters. Eli Wong is also a disaster.

Like Karpal said " Selangorians KENA TAUBAT.

moo_t said...

When the new landmark enacted, the new commercial building, PJX at Jalan Barat will be ready.

Looking at the traffic flows, I rather go PJX than traffic nightmare Jalan Semangat.

moo_t said...

Dear Anonymous May 29, 2009 12:18 PM

Landslide at bukit antarabangsa are "Satu Lagi Project oleh BN".

Eli Wong scandal also "Satu Lagi Project oleh BN" that illegal invade personal privacy.

PKFZ, well. "Satu Lagi Project oleh BN"

Jaya supermarket complex? At the first place, MPPJ is also "Satu Lagi Project oleh BN", it is illegally extend 2 extra floor to the carpark extension. It is unknown whether this extra has jeopadize the integrity of the main building.

So you want to argue more? Come to my blog. :p

moo_t said...

The most unique part of Jaya supermarket complex are the spiral staircase.

La Cha Mau said...

Maverick, this is exactly the story of the Ruling Powers and the Ruling Man. Very soon they will also collapse as they are unable to withstand the sheer weight of all the combined fragments of one single woman........

Yoon Lee said...

Can anyone remember what was on this plot of land prior to 1974?

Maverick SM said...

Wood,

Rental at S14 can be as high as RM500 psf.

Tidak Jaya,

NLA do not include common areas. However, the concourse are considered LA.

Moo_t,

Good analysis.

La Cha Mau,

Good analogy.

Yoon Lee,

I hope someone can answer your query.

Wood said...

The rental in PJ for at a mall ranges from RM50 psf for ground floor to RM 3 - 5 for fifth to sixth floor.

Where to get RM500 psf, it sounds more like RM500 per sq meter for rental.

Maverick SM said...

Wood,

You may be right. It could be sq m. However, the rental for top norch shooping centre could fetch higher rates. I am guessing too.

Anonymous said...

obviously the demolition team lack of experience. they should have applied C4 explosives like those used near Puncak Alam secondary jungle few years back....

some professional just never read update themselves from info available to the masses!

Anonymous said...

Out of topic but as a matter of comparison to one of the largest malls in the world...

The Dubai Mall was developed and is operated by Emaar Malls Group, the retail subsidiary of Emaar Properties – a global property developer that also built the Burj Dubai, next door to the Dubai Mall. The Burj Dubai is today the tallest building in the world, standing at an awesome 818 metres high with 162 floors and a retail space of 9 million square feet. For more info: http://www.designbuild-network.com/projects/burj/

samson said...

This reeks of money changing hands under table again. If this was done proffesionally by the Sgp partners (assuming), they would have vetted the contractors instead of paying the highest price for the cheapest contractor.

The consultants should be looked into as many a times, the proffesional consultants would have a negotiated tender instead of an open tender. Reeks of past BN culture, isn't it?

Local councils are stil the same people with same mentality even if governments change.

denzook said...

everything that temasik wants to venture sure ends with disaster...

thaksin

Merrill Lynch

and now jaya....