Sunway Malls eyes 6.5% sales growth in first half of year

KUALA LUMPUR: Sunway Malls is forecasting a 6.5 per cent growth in sales performance for the first half of 2024 (1H 2024) year-on-year (y-o-y), buoyed by robust growth in the first quarter of this year.

The mall operator said better than expected performance from Sunway Carnival, resilient food and beverage (F&B) performance and double-digit growth in jewellery and health and personal care sub-sectors were among the key drivers that shored up the mall’s overall sales performance.

Chief executive officer of Sunway Malls and Theme Parks, HC Chan, said the group’s strategy focusing on the northern region apart from its traditional stronghold of the central region is paying off and that the expansion of Sunway Carnival in 2023 paved the way for better contribution in terms of sales growth.

“Sunway Carnival topped the sales performance among Sunway malls during the last Raya festive period. We foresee even more upside with better yield from a refreshed tenant mix once the refurbishment of 500,000 square feet of existing space is completed,” Chan said in a statement.

Additionally, Sunway Malls noted that its F&B performance also proved robust as indicators showed 6 per cent growth. The jewellery segment grew 14 per cent growth y-o-y as strong demand for gold pushed sales up while its health and personal care segment registered the highest growth year-to-date with 25 per cent growth y-o-y.

For the longer term and broader outlook, Sunway Malls is expected to grow its portfolio of malls through both pipeline developments and acquisitions with 1.5 million sq ft net lettable area, respectively, following Sunway Real Estate Investment Trust’s (Sunway REIT) recent acquisition announcements.

“In the pipeline, Sunway is also building three malls – Sunway Square with a retail space of 300,000 square feet in Sunway City Kuala Lumpur; Sunway Pier with a retail space of 350,000 square feet in Port Klang; and Sunway Ipoh Mall with a retail space of one million square feet in Sunway City Ipoh.

“Sunway Square is expected to complete in 2025 whereas Sunway Pier and Sunway Ipoh Mall are expected to complete in 2027,” Sunway Malls noted.

Including pipeline developments and acquired assets, Sunway Malls’ portfolio will grow from seven retail developments to 17. – BK