PETALING JAYA: Glove maker Rubberex Corp (M) Bhd has proposed to collaborate with Alliance Premier Sdn Bhd, Exsim Holdings Sdn Bhd and JT Momentum Sdn Bhd in the development and operation of Empire City Mall that is being constructed as part of the overall development of Empire City in Petaling Jaya, Selangor, through a joint venture company, Alliance Empire Sdn Bhd.
Rubberex has appointed its executive director Lim Chee Lip to spearhead this project and has entered into a conditional subscription agreement with Alliance Empire for the subscription of shares in the company.
“This investment represents a 20% stake in Alliance Empire, and Rubberex will be subscribing for the shares at RM180 million, to be fully satisfied in cash,” Lim said in a statement.
The proposed diversification comes at a time when the rubber glove industry’s outlook seems to be waning from its peak of supernormal profits and sky-high average selling prices towards normalisation as Malaysia enters the endemic phase of the Covid-19 pandemic.
Lim believes the Malaysian economy is undergoing progressive recovery, especially in the commercial and retail sectors.
“Capitalising on the current global economic reopening and recovery themes, our first foray and diversification into property investment is in line with the group’s long-term strategy of delivering sustainable growth, steady income and value creation to the shareholders,” he added.
Empire City Mall has a net lettable area of 1.7 million sq ft, including 8,572 carpark bays in its vicinity. It is located within the bustling Petaling Jaya city centre and is surrounded by established townships with high traffic catchment, public amenities and it is easily accessible by major expressways surrounding Empire City.
Empire City Mall has been independently valued at RM1 billion and the proposed subscription will enable the group to acquire a strategic foothold and participate in a sizable completed mixed property development project within a short period of two years.
