This article first appeared in City & Country, The Edge Malaysia Weekly on December 4, 2023 - December 10, 2023

WINNER | 163 Retail Park | YNH Property Bhd

Residents of Mont’Kiara are spoilt for choice when it comes to retail options. One such option is 163 Retail Park, which is part of the Kiara 163 integrated development by YNH Property Bhd.

The retail space, which opened in 2018, has a net lettable area of 255,000 sq ft. It currently has an occupancy rate of 99%, with 116 lots taken up by 108 tenants.

The mall has adopted an open design concept that allows for natural ventilation. At the tail end of the pandemic and lockdowns, the airy retail space gave people the confidence to enter the mall.

For its unique and inclusive design as well as various offerings, 163 Retail Park wins the The Edge Malaysia Property Development Excellence Award 2023 for Excellence in Neighbourhood Malls.

Speaking with City & Country about 163 Retail Park is YNH Property general manager for corporate strategy James Ngio and D’Kiara Place Sdn Bhd director of mall management Woo May Foong.

Ngio says, “As a developer, we saw some potential [in Mont’Kiara] and we wanted to create something that would complement the lifestyle of the neighbourhood. At the start, we wanted the project to be integrated, where the homeowners would be able to enjoy the ‘live, work and play’ elements in the same development. That is why we built the residential, office and retail components.

“In terms of the retail component, at the time of developing this project, there was a lot of competition in the retail sector [in the area]. So we wanted something different. That is why we went with an open mall concept, with more open spaces and more of the nature and green theme.”

Woo, who is also a retail consultant, relates how at the time of planning 163 Retail Park they had to study the market and one approach they took was to survey the residents and existing operators to find out what was actually needed or wanted in Mont’Kiara.

“What they [the shoppers] wanted was something not fully air conditioned. They have a casual lifestyle, they are outgoing, they like fresh air. So, we decided to include al fresco dining.

“There was a lot of brainstorming with the consultants with expertise on the M&E (mechanical and electrical) side, so we came up with a design that wasn’t too exposed and not too enclosed. Then we came up with the retail layout and the right tenant mix for the right customer,” says Woo.

Of the five levels of retail on offer, only one floor is fully enclosed. The breakdown of the retail categories is F&B 35%, health and beauty 30% and edutainment 30%, she highlights.

The retail space was open for only 13 months before the pandemic hit and Malaysia imposed the first lockdown in March 2020. Woo says that during the 13 months of operations, 163 Retail Park had an occupancy rate of 80% and was doing very well.

“When we reopened our doors in July 2020, business at 163 Retail Park picked up very fast. The reason was because we are semi air conditioned, we are not enclosed. At that time, people were scared of going to an enclosed mall.

“We didn’t have a lot of restrictions to close up many entrances. A lot of malls closed many entrances and opened only two. So, we had an advantage and we picked up pretty fast, particularly the F&B and health and beauty segments.

“When the second wave hit, we knew how to handle the situation. So, when the second wave cooled down, we reopened and our business went up again.”

Operating a mall is far from easy and requires attention to detail.

“Retail is all about the personal touch, really hands on. It is easy to select a tenant, but we have to check, without the owner knowing, their service, the food quality and how they operate,” says Woo.

She adds that if you fill a mall just to have it occupied, it can be done, but later, in six months’ time, rents may not be paid and then there will be the issue of finding new tenants. So, retail management and tenant management require a hands-on approach and due diligence is needed to ensure tenants are performing well and providing what is needed to customers.

Speaking of customers, 163 Retail Park draws a young crowd. “Some 70% of our customers are in the below 40 age group. How we know this is that sometimes, we have promotions and collect customers’ data, and also from our tenants, so we know we have a very young, second-generation catchment. Even with our own eyes, we can see young families, couples about 30-plus with their kids and prams,” says Woo.

She adds that because of this data, they have an idea of what is needed to keep the mall relevant to its customers. This could mean moving or replacing tenants to ensure customers’ needs are met.

The mall’s performance has been very encouraging. “When we compare the sales figures pre- and post-pandemic, basically, we are back to normal. We have an upside of 10% in terms of sales,” says Woo.

The mall collects RM28 million a month on average and footfall per annum is between six million and seven million.

Woo says there have been queries about the lack of a cinema. That missing element will soon be addressed, she says. “We have created a space for a cinema. GSC is opening, if all the approvals come in, in mid-November [as at the time of writing].”

Ngio and Woo express excitement at this new addition to the mall as it will have only three screens and fewer than 100 seats. It will target the up market category and provide table and meal services as well as comfortable seating for couples and families. There will be a space for private functions as well.

“You can also request a private screening of movies for a few friends,” says Ngio.

Apart from this addition, new tenants have opened, including Italian restaurant Osteria Emelia, Kenny Hill Bakers, myBurgerLab, What To Wear and SOUL Sports Physio & Rehab.

In February this year, a new entrance to 163 Retail Park from Jalan Kiara 4 was opened, which allows visitors to drive their cars into the mall’s underground parking.

“Overall, the retail market outlook is tough. It is tough because of inflation. Things are getting expensive. I think in the last few months, the prices of goods have increased. Consumers find it tough but for Mont’Kiara residents, we are not affected so much because disposable income here is [high]. We have a lot of expatriates, we are situated in a high-income area, with an average household income of RM18,000 a month. So for 163 Retail Park, if we provide the right tenants and ambience, we should continue to do well,” says Woo.

Both Ngio and Woo believe that 163 Kiara Park is more than just a run-of-the-mill mall that is only concerned about the footfall.

“We want to let the consumer know that we are not just an eatery mall, but our target is families. We have run some workshops on the weekends. A lot of kids participate. For some of our events, we encourage parents to participate with their children. So, our workshops are to remind everyone the value of family. The nice thing in the mall is to see three generations eating together to promote family values,” says Woo.

Ngio concurs. “This [mall] concept really works and I hope to replicate the success here in future projects. We have land near Matrade (20 acres) and we have land in KL city centre next to Shangri-La Hotel (three acres), and when the time is right, these pockets of land could be suitable for an integrated development. But we will see how we can best maximise the value of the land.”

Going against the grain has resulted in a retail space that stands out from the rest and provides customers what they want while they enjoy the ambience and plenty of fresh air.

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