Bukit Bintang City Centre (BBCC) will feature a retail mall, with construction work for both BBCC and Mitsui Shopping Park LaLaport KL set to begin soon.
Prime Minister Datuk Seri Najib Tun Razak, who officiated the ground-breaking ceremony for the project on Tuesday, June 20, morning, said the BBCC project marks "significant national-level development".
He said it was a successful example of public-private collaboration, which the government is keen to encourage.
"BBCC is also an example of the key projects which support the government's focus under the Economic Transformation Programme for Greater KL and the Klang Valley," said Najib.
He said the site is a "historical" location, as it was where Pudu jail, the old colonial-era prison, used to be located.
The area will be transformed into a world-class integrated development by 2020.
"With the scarcity of land in any developed capital city like Kuala Lumpur, it is essential that redevelopment of city centre brownfield sites is done carefully and very well," said Najib.
He said Mitsui Fudosan is no stranger to Malaysia, having developed the first Mitsui Outlet Park near the KL International Airport in partnership with Malaysia Airports Holdings Bhd.
The retail mall, estimated to cost RM1.6bil, will be established, owned, managed and operated by joint-venture company MFBBCC.
MFBBCC was established after BBCC entered into a joint venture with Mitsui Fudosan Asia last October.
The agreement sees Mitsui Fudosan Asia owning half of the shares in the joint venture company with the remaining 50% owned by shareholders BBCC Development Sdn Bhd, UDA Holdings Berhad, Eco World Development Group Berhad and the Employees Provident Fund Board.
The Mitsui Shopping Park LaLaport retail project will have a built-up area of 1.4 million sq ft when completed.
It will be the first LaLaport branded shopping mall in South-east Asia and Mitsui Fudosan Asia's flagship project in the region.
UDA Holdings Bhd chairman Datuk Seri Dr Mohd Shafei Abdullah said BBCC sits on 19.4 acres of land and will have a total gross build-up area of 6.7 million sq ft with a gross development value of RM8.7bil.
Phase one, said Mohd Shafei, is scheduled to be completed by December 2020.
It will have a retail mall, an entertainment hub, five blocks of serviced apartments, a four-star hotel, one strata office and two blocks of serviced apartments.