The Waterfront City mall, which overlooks the Straits of Johor Bahru and Singapore, could be converted into a commercial building similar to KL Tower (in Kuala Lumpur) with an estimated gross development value of RM1 billion, sources said.
The source said that there are plans to demolish the mall, also known as Lot 1, to make way for a mixed-use commercial building with a revolving restaurant at the top level and a telecoms antenna at the highest point.
According to him, the Johor Bahru City Council (MBJB) will commence the development and ask investors, including the private sector and Government-Linked Companies (GLC), to submit a tender to develop it.
"Subject to local authority approval, the mall, and surrounding land will be redeveloped into a Square, which will include the tower and a Fisherman Wharf with food and beverage outlets as well as retail. It will be a new iconic landmark in Johor Bahru's city centre facing the sea, as well as an Instagramable spot for Johoreans and visitors," the source told NST Property.
"The plan is in its infancy. The mall's redevelopment should begin next year. The mall sits near Istana Besar and is a huge eyesore there. The only way to accomplish this is to purchase individual lots, demolish the entire mall, create another mall away from the Istana Besar, and then move all of the tenants there. It's a little dicey because the mall has multiple owners. There are about 400 retail lots, and I believe the owners will be compensated," the source said.
According to the source, the mall will be redeveloped step by step.
"First and foremost, the mall must be revalued. If the retail lots are to be acquired, the initiator will have to haggle with the owner. A portion of the site will need to be rezoned for the mall to be relocated. There will be a public display for a month following the rezoning for people to voice their opinions," he said.
The source said the local authority will then either gazette the acquisition under Section 4 of the Land Acquisition Act 1960 that land is likely to be acquired, or under Section 8 to declare that land is to be acquired.
He said that the Land Office will conduct an investigation and determine the value or amount to be compensated.
"The acquisition includes not only Lot 1 but also the surrounding land. Over 20 acres will be acquired in total," he said.
Lot 1 mall, part of JB Waterfront City
The Lot 1 mall was constructed for more than RM100 million in 2000 as part of the Johor Bahru Waterfront City floating project.
The RM6 billion project, which was intended to consist of 10 parcels, was launched in 1996.
Office blocks, condominiums, and a hotel were planned for the 2.5km seafront, but no other development took place except for the construction of Lot 1.
The state decided to abandon the floating city project in 2003 due to environmental concerns, as well as an economic downturn.
There were proposals to redevelop the complex, but they were never realised.
Only the open car park area is used to warehouse repossessed vehicles recovered by MBJB.
Transbay Ventures Sdn Bhd, a 70:30 joint venture between Pilecon Engineering Bhd and the Johor state government, built the Lot 1 mall.
On January 27, 2006, the Kuala Lumpur High Court granted an order to liquidate the company on Jan 27, 2006.
The mall has over 400 units and a net retail space of 380,000 square feet. It closed down in 2003 after operating for three years.
The RM1 billion redevelopment plan, according to the source, comprises constructing a new platform atop the existing piles, which were built more than a decade ago.
"Because they were built many years ago, the existing piles need to be reinforced. A slab will have to be installed by the developer. There will be an embarkment along the slab to prevent water from entering the development and protect the properties," the source said.
When contacted, Samual Tan, executive head of KGV International Property Consultants, said that if Lot 1 is redeveloped, it will beautify JB city centre, particularly the Ibrahim International Business District (IIBD).
"It will become more realistic and tangible as a result of this. It will also attract investors and a large number of tourists. Currently, Heritage Village and Puteri Harbour are the most prominent tourist destinations in Johor Bahru. With the redevelopment of Lot 1, it will have another tourism draw in the future, which would benefit the entire state," he told NST Property.