Starhill Gallery Dubai first step to globalise brand

Starhill Gallery Dubai first step to globalise brand

KUALA LUMPUR: Creating a “twin” of Kuala Lumpur's Starhill Gallery in Dubai is the start of efforts to globalise the brand by having a chain in major cities around the world, parent company YTL Corp Bhd managing director Tan Sri Dr Francis Yeoh Sock Ping said.

Other cities earmarked included Abu Dhabi, Oman, Moscow, Shanghai and Jakarta, said Yeoh, who is also chief executive officer of Pintar Projek Sdn Bhd, which manages the Starhill Real Estate Investment Trust (REIT).

Expecting the brand globalisation drive to be a success in these and other cities, he said: “Asia is very brand-centric, more than many western capitals. So for us to develop in the Middle East and Asia, we are focusing on the right areas.”

YTL Corp had announced on Tuesday the signing of an agreement between Pintar Projek and ETA Star Property Developers LLC to launch the Starhill Gallery concept in Dubai.

According to the announcement, Pintar Projek expects contributions from licensing fees of about RM5.2mil and an annual brand management fee under a 4% gross profit-sharing arrangement for use of the brand.

Dubai's Starhill Gallery will be within the US$410mil Starhill Towers and Gallery complex being developed by ETA Star. Construction is due to begin in the third quarter of this year and completed in the second quarter of 2010.

Besides providing brand management services, Pintar Projek will also share expertise with architects and consultants during the design and construction stage.

“The brand can actually work. I foresee us going global while locally, Starhill will accumulate only iconic and branded properties,” Yeoh said yesterday after a meeting of Starhill REIT unitholders.

“With the Starhill kind of project, if you get 10 more of this (Starhill Gallery set-ups), you can get US$50mil and with the 4% revenue (gross profit-sharing), you can get an average of US$500mil.” – Bernama