This article first appeared in City & Country, The Edge Malaysia Weekly on April 29, 2024 - May 5, 2024

After spending decades establishing townships such as Mutiara Damansara and Mutiara Hills in Selangor as well as Mutiara Rini in Skudai, Johor, Boustead Properties Bhd is now looking to elevate them — starting with the regeneration of Mutiara Damansara.

Mutiara Damansara, which spans 355 acres and comprises freehold residential and commercial land, was launched in 1997. “Out of 355 acres of land, a total of 60 acres were allocated for corporate offices and retail lots. The remaining 295 acres were for residential, shopoffices and two extensive landscaped parks named Mutiara Parks, measuring 13 acres and six acres each,” Boustead Properties CEO Khairul Azizi Ismail tells City & Country.

While the area is thriving, one particular project by the developer has been left unoccupied for some time. Widely known as eCurve, the mall began operating in 2006 and was closed in March 2021 for redevelopment. To make way for the redevelopment project, eCurve will be demolished in end-2Q2024 for a serviced apartment named The Lines.

“The decision to redevelop eCurve was borne out of a comprehensive vision to revitalise the Mutiara Damansara township. This aligns with global trends in urban regeneration projects, aiming to create a more vibrant and sustainable environment for the community.

“We believe this redevelopment exercise can unlock the value of Mutiara Damansara’s commercial precinct,” Khairul adds.

With the launch of The Lines in 3Q2024, the developer will begin its revitalisation efforts of Mutiara Damansara’s commercial precinct, leveraging its transit-oriented development aspect. This, he says, will also help in elevating the image of The Curve shopping mall — adjacent to the site, thus improving its tenant mix and rental rate.

“Our upcoming project, The Lines, is set to kick-start the first phase of this revitalisation plan in 3Q2024. The overall revitalisation plan of Mutiara Damansara will take about 10 to 15 years to complete with an estimated GDV of RM8.9 billion. The Lines serves as a catalyst for our vision of a greater and greener Mutiara Damansara as we aim to achieve carbon neutrality and create a vibrant, biophilic-themed environment along with the rejuvenation of Mutiara Parks for the community and environment.”

Spread across a 3.87-acre parcel, The Lines will comprise 999 serviced apartment units in four towers, three of which are for the open market and one under the Servis Apartment Mampu Milik (SAMM) affordable housing scheme.

The three towers for the open market will have a total of 749 units, with the tallest tower being 67 storeys. The developer will offer 14 types of layouts, ranging from one- to 4+1-bedroom units with built-up sizes from 590 to 2,880 sq ft. These units are priced from approximately RM1,100 to RM1,300 psf.

The SAMM tower, on the other hand, will comprise 250 units with a built-up size of 550 sq ft and a selling price of RM250,000. Further details of the units for both the open market and SAMM have yet to be released.

Khairul explains that the design concept of the development is contemporary, which would blend well with the existing buildings in the area. “The design concept of The Lines is also a testament to modern urban living, integrating sustainability, accessibility and community engagement to create a vibrant and inclusive residential environment in Mutiara Damansara. With this, we are aiming to create a 15-minute walkable city.”

To cater for multigenerational living, Khairul highlights that units at The Lines will be designed to be senior-friendly. Some of the features include wider door sizes, a 1-inch drop in the bathrooms and gentle slopes.

As part of the developer’s commitment towards environmental, social and governance (ESG) principles, Khairul says The Lines will have several green features that align with the company’s sustainability goals.

“ESG compliance is a trend now for any development and we are being consistent with the current trend. [In] our commitment [towards] ESG, we have laid out several initiatives by providing electric vehicle chargers, rainwater harvesting and waste management systems, among others. This will lead to the creation of a vibrant and connected urban oasis.

“Additionally, the introduction of landscape and water features, along with planters and seating, promotes biodiversity and reduces carbon emissions, creating an environmentally friendly and aesthetically pleasing environment at The Lines,” he adds.

Facilities for the SAMM tower will be separate to keep the maintenance fee at an affordable rate, Khairul says.

For the open market towers, facilities include an urban surau, EV-charging lounge, sky decks, games room, barbecue area, changing rooms, swimming pool, lap pool, meditation room, studio, children’s sensory garden, hammock area, fitness room, gardens, co-working space, futsal-cum-badminton courts, indoor gymnasium and multipurpose hall.

To cater for residents and the general public, the developer will offer 50 units of retail lots. Khairul says the space spanning about 100,000 sq ft will be occupied by a wellness centre and retail stores. These retail lots will be owned and managed by Boustead Properties.

As The Lines will be located next to the Mutiara Damansara MRT station, the developer will build a covered walkway from the development to the station. Khairul explains that the general public will also be able to access the walkway, as it will pass through the retail component of The Lines.

The sales gallery for The Lines will be open for a private preview on April 30 and to the public from June.

The challenges associated with working on a redevelopment project like The Lines in a mature and busy area are multifaceted due to the existing infrastructure, community expectations and regulations. Rising construction costs, limited space and managing construction logistics are also among the key considerations, Khairul says.

“To overcome the above challenges, we have taken a few preliminary steps. Consultants have been appointed to [conduct a] study into the improvement of the overall Mutiara Damansara traffic circulation, and a proper work method statement and traffic management plan will be implemented.

“Besides that, we will be maximising the usage of the Industrial Building System, especially for floors and walls of the units due to limited working space. Of course, we would also adhere to local authority requirements and regulations plus proactive community engagement will be carried out.”

“By addressing these challenges through meticulous planning, innovative design and proactive community engagement, we are confident in our ability to overcome the complexities associated with redevelopment projects in well-mature and busy areas,” Khairul adds.

For The Lines, the developer is targeting buyers from income groups ranging from B40 to T20. “This may be the second or third generation of Mutiara Damansara’s existing buyers seeking residences close to their current homes; upgraders within the Mutiara Damansara vicinity, with demand for two-bedroom and larger units being primarily driven by owner-occupiers as well as singles and young couples who are working in the Klang Valley and prefer public transport for their daily commute.

“We are also targeting buyers currently living within a 15km radius who are seeking a modern urban lifestyle living experience and, of course, senior citizens because we will have a wellness centre and senior-friendly layout design that’s catered for them.”

Khairul explains why the best replacement for eCurve is a serviced-apartment development. “The township is already mature with excellent connectivity through highways and the MRT Kajang line. Further, the commercial precinct is occupied by various commercial components such as The Curve and IPC Shopping Centre for retail, Ikea for home furnishings, Lotus’s for hypermarket, KidZania as an indoor theme park for children, offices including Surian Tower, The Bousteador, KYM Tower, UAC, Dialog and Menara KLK, as well as hotels including Royale Chulan Damansara and Royale Chulan The Curve.

“The Mutiara Damansara commercial precinct is currently separated from the residential side. Through market research, we found that we need to add a residential component in order to provide additional population to the commercial precinct, thus bringing immediate catchment into the area, continuously throughout the day,” he adds.

Furthermore, Khairul believes that it is beneficial to have a residential component, given that the Mutiara Damansara MRT station is next to the site. “To put it simply, the missing link in this area was the residential component. Once we have that, we would have a ready catchment area that will basically spur the retail components of the township.”

Speaking on the value appreciation of the developer’s previous projects in Mutiara Damansara,  Khairul reveals that the value of some residential developments appreciated by 30% upon vacant possession while some of the earlier phases have appreciated more than 400% to date.

Boustead Properties has undergone significant progress and growth over the past two years, solidifying its position as a key player in the local real estate sector, Khairul says.

“One pivotal milestone during this period was the launch of the Mutiara Spaces [brand] in 2022, marking a strategic rebranding initiative aimed at guiding all current and future developments. This rebranding effort is underpinned by a comprehensive five-year strategic business plan, emphasising key pillars such as digital technology-led initiatives, smart spaces and embracing ESG frameworks.”

He adds that Boustead Properties has demonstrated notable growth through its projects. For example, Phase 1 of its Mutiara Hills township in Semenyih has been fully taken up; Rini Homes 8 Finale in its Mutiara Rini township in Skudai has been fully taken up; One Cochrane Residence in Kuala Lumpur is now 95% sold; and the Bukit Raja Industrial development, with total GDV of RM560 million, currently has two lots left for sale.

Following the success of its previous launches, the developer plans to unveil more projects this year. In Mutiara Rini, it is preparing to launch Rini Hills 3 landed homes in 2Q2024. Mutiara Rini is a 1,438-acre freehold township with an estimated total GDV of RM4 billion. Since 1996, Mutiara Rini has developed and completed 11,389 homes. Khairul says it has a current population of about 50,000.

Boustead Properties is also undertaking the 20-year master plan development of Mutiara Hills, a 1,200-acre nature-oriented township. Work commenced in 2021 with an estimated total GDV of RM4.8 billion. “Our first phase of 230 units were fully sold and currently, we are focusing on phase two which is targeted to be launched in 2Q2024,” he adds.

On how Khairul aims to further elevate the company, he says his team has put in place strategies to enhance competitiveness, innovation, sustainability and customer satisfaction. Some of the initiatives include asset monetisation; acquisition of new land bank in the southern, central and northern regions; diversification of product offerings from mid to high end; diversification of its property development business model from mixed development to industrial development; and business expansion plans for facilities and parking management.

To further diversify its portfolio, he reveals that the developer is currently looking to acquire land in the northern region for industrial developments. He also highlights that besides township developments, Boustead Properties will now also focus on industrial developments, depending on market demand.

To wrap up the interview, Khairul provides his outlook for the property market this year. “We are very bullish about the property market in the Klang Valley. That’s why we are still here. Based on the demand and take-ups for Phase 1 of Mutiara Hill and our recent launches in the southern region, where we experienced 100% take-up rates, we are very bullish that the Lines would be able to achieve something similar.

“The most important aspects homebuyers look for are primarily location, pricing and, of course, the workmanship. At Boustead Properties, we do our best to make sure that there are minimal defects. That is what we have always been emphasising from day one, even during the previous management. You can have a good location and good pricing, but at the end of the day, if you fumble in terms of quality, you will not get repeat house buyers. So high-quality workmanship is part of our core DNA and is something we hope to practise in the long run,” he says.

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