Sean Ng to redevelop Bangunan HL

THE EDGE WEEKLY ISSUE#1002

THE WEEK OF FEBRUARY 17 – 23, 2014

By: VASANTHA GANESAN

Datuk Sean Y T Ng of Mammoth Empire Group, known for the Empire Subang and Empire Damansara developments, is planning to convert yet another office building in Kuala Lumpur into a boutique hotel.

Ng, via Mammoth Empire Holding Sdn Bhd, is planning to redevelop Bangunan Hong Leong (later renamed Wisma Megah) at the corner of Jalan Tun HS Lee and Jalan Tun Tan Cheng Lock, into a 188-room boutique hotel that will include retail outlets, cinemas and recreational facilities.

It is understood that the building, which used to house a Hong Leong Bank branch and the Hong Leong Group’s corporate headquarters, was acquired by Mammoth Empire in April 2012 for an estimated RM38 million.

According to a submission to Dewan Bandaraya Kuala Lumpur (DBKL), Mammoth Empire plans to convert the office building into a hotel and make provisions for retail floors.  To accommodate the planned room inventory, it will add seven floors to the existing 16-storey building.

The company’s submission to DBKL specifies plans to convert the first and second floors into retail space while the sixth floor will house the cinemas.  The 188-room boutique hotel will be from floors 7 to 20 while the 21^st floor is where the recreational facilities will be.

At the time of purchase, the asset had a total land area of 9,913.64 sf but after surrendering part of the land for a road reserve, the current land size stands at 9,504.61 sf.

It is understood that the initial application made on Dec 31, 2013, has been rejected by DBKL.  Nevertheless, a modified application can be resubmitted.

Should a similar application be approved, industry players estimate that the redevelopment could be to the tune of RM75 million, not including the possible reinforcement required on the foundations since more floors are to be added.

According to sources, the boutique hotel will be named Wolo, similar to the one in Jalan Bukit Bintang.  The later, which has 110 rooms, is located at the junction of Jalan Bukit Bintang and Jalan Sultan Ismail.  The building previously housed offices and was called Wisma KLIH.  In 2010, Ng’s wonderful Vantage Sdn Bhd bought the building for RM58 million from Equine Capital Bhd.

“The group plans to expand the Wolo chain,” says a source, adding that apart from the hotels in Bukit Bintang and Jalan Tun HS Lee, there will be another in Seremban, Negeri Sembilan.  The group may even change the name of the existing Empire Hotel in Empire Subang to Wolo, says the source.

The Wolo hotel chain charts its future expansion

In fact, the company’s website also hints at a Wolo hotel at Empire Remix in USJ, Subang Jaya.  Empire Remix is an integrated mixed-use development comprising lofts, business suites, a hotel and retail lots.

Incidentally, the Wolo houses Korean bakery Tous les Jours, for which Mammoth Empire holds the master franchise.  The Tous les Jours is owned by South Korea’s CJ Foodville, a member of CJ Group.

CJ Group also owns CJ CGV, the operator of a multiplex cinema chain in South Korea.  CJ CGV has 4DX technology – which arouses the five senses as the cinema will include effects such as wind, light, scent, motion and water.  “He (Ng) has always said he wants to start a cinema hotel,” the source says.  This suggests that the proposed hotel project in Jalan Tun HS Lee may incorporate such a cinema.

It is also rumoured that CJ CGV will be the anchor at the Empire City Damansara development.  Empire City, located opposite the Damansara Perdana township along the LDP, will be developed in three phases.  The first phase, with an estimated (GDV) of RM5 billion, will house offices, hotels, serviced apartments and a shopping complex.  It was reported that the second phase will include a theme park and a concert hall.

Last year, CJ Group teamed up with Iskandar Investment Bhd to develop a 9.5ha site in Iskandar Malaysia, Johor.  The project, with an estimated GDV of RM4 billion, will include office towers, hotels, serviced apartments, loft offices, retail lots, a convention centre, concert hall and cinema.

Construction of the project, called Medini Empire, is expected to commence in 2015 and will be completed in 2018.

One of the first known projects by Mammoth Empire is its development in Subang.  It owns and operates Empire Shopping Gallery and the Empire Hotel.  It has since completed a couple of projects in Bangsar, including The Ara and The Loft.

Mammoth Empire is also involved in developments in mebourne, Australia. Reports say that apart from the A$250 million, 55-storey MY80 development, the group plans to build twin towers to complement MY80. E