The northern corridor’s only premium outlet mall

THOSE who want to have a fun outing may enjoy some retail therapy at Penang’s Design Village in Bandar Cassia (formerly known as Batu Kawan). Opened to the public on Nov 23 by Penang Chief Minister Lim Guan Eng, with performances and fireworks, this is the only premium outlet mall in the northern region of Peninsular Malaysia.

The single-level mall was developed by PE Land (Penang) Sdn Bhd, a subsidiary of PE Land, the engineering, construction, retail and property development arm of Borneo-based Pan Sarawak Holdings, which is also the developer of The Spring Shopping Centre in Kuching. It is being marketed by Savills Malaysia.

The RM250 million premium outlet mall sits on 25 acres, minutes away from the Sultan Abdul Halim Muadzam Shah Bridge, the second Penang bridge. Some 50% of the shops are open for business. The mall has 150 shoplots that provide 400,000 sq ft of net lettable area.

According to Joanna Ling, executive director of PE Land, the outlet mall is designed to be pedestrian-friendly with various spots to stop, rest and shop again. “We have worked with many parties to create [the Design Village] … including the North Corridor Implementation Authority to fill the space with LED lights. And one of the things we specifically wanted was to make sure all the LED lights we used were made in Penang.

“We are probably the first shopping mall in the northern corridor to have an electric car charging station in our car park, though I am not sure how many electric cars there are in Penang. But I am sure there will be more in the future. We are future-proofing the development.”

Brands already open for business include Sacoor Brothers, Guess and Superdry, while adidas is opening its largest store in the country. Lifestyle choices for the children include Toyworld, Poney and Cotton On Kids. Akemiuchi, Beauty Scents, Hush Puppy, Obermain, Samsonite, Bratpack and Timberland also have shops in the mall.

About 15% of the tenant mix, according to the developer, will be food and beverage offerings. Tourists can get a tax rebate through Global Blue, a recognised tourism shopping tax refund company.

When asked what led PE Land to invest in Design Village, managing director James Ling says instinct guided his decision.

“Normal shopping malls are too plentiful. There is no way that we, a small company in Sarawak, would want to invest in [one]. So, one way to go was an outlet mall, and we are the only one in the northern corridor. My instinct tells me this will work,” he says.

While there are plenty of bargains, the premium and luxury brands are not represented yet. According to Allan Soo, managing director of Savills Malaysia, the brands are currently going through a rationalisation and consolidation process.

“They (the premium and luxury brands) are scheduling themselves to come to Penang, primarily because they will need to use Design Village as one of their [retail] channels and all retailers use multiple channels now. So, it is a matter of a year or so before some of these brands potentially sign up with us,” he says. “We are hopeful that we will have 85% of shops open by June 2017.”

To ensure easy access to Design Village, general manager Tay Ai Leen says a shuttle bus will ply the streets from Gurney Drive to Komtar to ferry shoppers to the outlet mall free of charge. Familiarisation programmes for tour guides and agents will also be organised.

In addition, advertisments will target the people who work in the industrial zones nearby, and there will be tie-ups with Penang Global Tourism. Social media will be used to send out promotions and outdoor advertising will also grab shoppers’ interest, she says.

In the future, a hotel and residential high-rises will be built. At the moment, though, the Design Village team are working hard to ensure the outlet mall meets shoppers’ expectations.

This article first appeared in City & Country, a pullout of The Edge Malaysia Weekly, on Dec 12, 2016. Subscribe here for your personal copy.