This article first appeared in The Edge Malaysia Weekly on December 4, 2023 - December 10, 2023
The lush landscape and water features at Bamboo Hills, Kuala Lumpur, once again form a delightful backdrop for an interview with UOA Development Bhd managing director C S Kong after the dining destination opened its doors to the public last year.
“A lot of people like to come here and take photos and selfies for Instagram. That’s what we want. Our aim is to create something different and Bamboo Hills is not something common in KL. So we are very proud of this place.
“I think that’s the key thing for us — that whatever projects we do, they must be projects that we can be proud of. Our aim is to create something different for people,” the jovial Kong remarks as we settle into our seats at a private dining room in Potager KL, one of the latest fine dining restaurants in Bamboo Hills.
In addition to the first phase of Bamboo Hills, UOA Development also completed The Goodwood Residence, Aster Green Residence and Komune Living & Wellness in its financial year 2022 (FY2022) ended Dec 31, 2022.
Located within the group’s 60-acre Bangsar South master plan development and completed in 2QFY2022, The Goodwood Residence comprises a 40-storey residential tower with 678 units.
As for Aster Green Residence, it is the first phase of the company’s Sri Petaling development and consists of one 26-storey residential tower with 440 units. The project was completed in 3QFY2022.
Komune Living & Wellness is an integrated co-living and wellness hub that the company officially launched in May 2022. It houses a co-living hotel, senior living facilities and a wellness centre, which offers comprehensive health, wellness and care services, next to Taman Tasik Permaisuri in Cheras.
The three projects have a combined gross development value (GDV) of about RM1.8 billion.
In its FY2022, the company registered total property sales of RM638.2 million, mainly attributable to Laurel Residence in Bangsar South, The Goodwood Residence and United Point Residence in Segambut.
Although the group recorded lower revenue at RM451.7 million in FY2022 compared with RM547.5 million in the preceding year, its cash and cash equivalents remained robust at RM2.2 billion as at Dec 31, 2022, and its gearings were lower at RM100,000 compared with RM500,000 in the previous financial year.
Always staying abreast of the comings and goings of the company and industry, the property veteran shares his thoughts on the company’s performance as well as updates on its exciting new projects.
City & Country: What has UOA Development been busy with over the past 12 months?
C S Kong: There are two projects that we have been focusing on, namely Duo Tower in Bangsar South, which is set to be launched in 1Q2024, and Bamboo Hills Residence at Bamboo Hills, which will also be launched next year.
We are very excited about Duo Tower as we are offering something different to the office market, whereby the modern office spaces will be integrated with greenery using biophilic design.
Duo Tower will comprise two towers: Tower A and Tower B, whereby the latter will be owned by UOA Group. As for Tower A, the 34-storey Grade A office building will offer a total of 239 units spread across 24 floors on a 1.92-acre parcel.
As the latest stratified office development in Bangsar South, Duo Tower will offer flexible offices with built-ups ranging from 1,389 to 3,003 sq ft as well as bigger floor plates of up to 20,000 sq ft as the walls between the units can be merged into a larger open space to cater to larger businesses, corporations and organisations.
Duo Tower has also obtained a GreenRE Silver certification and will have 16 electric vehicle charging bays, solar panels on 30% of its rooftop space, a big six-acre park with 40% green space and landscaped area that acts as a green oasis for tenants.
As for Bamboo Hills Residence, it is the latest phase of our Jalan Ipoh development following the completion of Bamboo Hills Phase 1, which comprises unique dining pavilions and vast outdoor spaces.
Bamboo Hills Residence will comprise three residential blocks on 11 acres of land. The first phase, or Block A, will feature 755 units with built-ups ranging from 596 to 1,200 sq ft.
We have also completed Astana, an event venue at Bamboo Hills. What sets Astana apart is its glasshouse-like A-shaped architecture, coupled with the panoramic views, sculpted landscapes, water features and lush green foliage in its surroundings. The venue’s 2,100 sq ft hall can accommodate up to 100 guests comfortably and has a grand 43ft ceiling volume and an elegant crystal chandelier.
Astana caters to a wide range of events from corporate functions and workshops to weddings, cocktail parties and other social gatherings. Organisers have the option to choose from the array of food concepts available on-site or bring their own caterers.
Building what the market needs
What is your outlook on Klang Valley’s office market and why do you think Duo Tower will do well?
The Klang Valley may appear to have an oversupply in the office market. However, the demand for office space here is very location-centric. While some locations struggle with oversupply of office space, many decentralised business districts supported by good infrastructure, amenities and connectivity are experiencing a good take-up in office space. For example, high demand is evident in the office space in Bangsar South with high occupancy and strong take-up rates.
The KL office market saw stable rents this year and was supported by gross domestic product growth in the first quarter. This beats expectations as the country continues to bounce back from the pandemic slump. The demand for Grade A buildings with great accessibility is likely to increase, owing to the trend of decentralisation to areas outside the KL CBD.
Hence, we are confident in the potential of Duo Tower in Bangsar South and our market survey shows that the demand for office space in Bangsar South remains robust.
UOA Development recorded lower revenue of RM451.7 million in FY2022 against RM547.5 million in FY2021. What were the challenges encountered during the review period?
This was mainly the result of the pandemic. Revenue is recognised progressively based on the stage of completion of respective projects, and the revenue in FY2021 was mainly from projects launched and sales achieved prior to the pandemic.
The company did not launch new projects during the pandemic/MCO period. Hence, revenue recognition was lower in FY2022.
Nonetheless, the revenue from the new projects launched last year and this year will be reflected in the coming year, which will be a very exciting year for UOA.
What will be your growth strategy in the mid to long term?
We want to be selective with our developments. Rather than just develop and sell any land we’ve got, we want to build something only when we feel those products are what is required by the market.
What the market needs now is convenience, so developments must be located near public transport, highways and amenities, like Bamboo Hills Residence and Duo Tower.
Hence, we plan to continue to focus on our developments in Bangsar South and Bamboo Hills.
Do you have plans to develop another Bangsar South? What are your plans for Bamboo Hills?
Actually, we take Bamboo Hills as another Bangsar South, but on a smaller scale. Bangsar South is 60 acres, and Bamboo Hills is 27.
The Bamboo Hills development will be our next anchor project, where focus will be placed on the residential component with supporting amenities. Bamboo Hills Residence, located near the Kentonmen MRT station, will have a retail podium comprising lifestyle conveniences such as a grocer, food court, pharmacy, F&B outlets and childcare services, as well as a wellness component offering care services for the elderly.
Please update us on your ongoing projects.
Apart from Duo Tower, whose pre-sale has started and construction is ongoing, our other ongoing projects include Laurel Residence and Aster Hill.
Laurel Residence is a residential development with a GDV of RM550 million in Bangsar South, comprising 1,260 units in two blocks of 42-storey residential towers. The project is approximately 70% sold and is expected to be completed in FY2026.
As for Aster Hill, it is a residential project and Phase 2 of our Sri Petaling development. It comprises 1,150 units in two 32-storey towers adjacent to Aster Green Residence. The project is approximately 25% sold and is slated to be completed in early 2027.
The company completed Komune Living & Wellness last year. Please share why you think senior living is an important segment in today’s context.
Statistics have shown that Malaysia’s ageing population is growing at a faster-than-expected pace but there is a lack of well-established senior living offerings in the market. In a high-demand, low-supply environment, we believe that the senior living sector is poised to propel to a different level in time to come.
The acceptance level for senior living is also evolving steadily despite concerns about the quality of elderly care facilities and parents preferring to live in their own homes or with their children. In addition, the share of senior citizens who prefer to live alone is growing.
Komune Living & Wellness is one of the first integrated facilities in Asia that combines co-living spaces with a dedicated wellness hub that offers high-quality senior care, professional medical services, traditional Chinese medicine, and other wellness options to both residents and walk-in guests.
Although the property welcomes guests of all generations, Komune Living & Wellness’ rooms and amenities are tailored to the needs and requirements of elderly residents as well as those seeking post-hospitalisation monitoring or who require swift access to advanced medical care.
Adjoined to Taman Tasik Permaisuri, one of the biggest public parks in Cheras, Komune Living & Wellness is a sanctuary for short vacations, long-term stays and senior living.
What is the total size of the company’s land bank and their locations? Are you planning to acquire more land?
Our current land bank is under 100 acres and mainly located in Bamboo Hills, Bangsar South, Shah Alam and Cyberjaya. We will continue to explore new opportunities for future investments that meet UOA’s objectives.
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