This article first appeared in City & Country, The Edge Malaysia Weekly on November 25, 2024 - December 1, 2024

UOA Development Bhd (KL:UOADEV) may have scaled down its project launches over the past few years, as reflected in its lower revenue of RM399.4 million in FY2023 ended Dec 31, 2023, compared with RM451.7 million in the previous financial year, but thanks to its prudent strategies and management, it recorded a higher net profit of RM279.6 million for the same period, compared to RM219.9 million in FY2022.

“We recorded lower revenue because we scaled down new project launches since the Covid-19 pandemic. Nonetheless, we recorded a higher net profit mainly from recurring income from our investment properties and improvement in our hospitality division’s performance,” says UOA Development managing director C S Kong.

The sharp and cheerful octogenarian adds that the hospitality division’s performance has returned to and even surpassed pre-Covid-19 levels. “Surprisingly, even our occupancy is higher than pre-pandemic due to the influx of visitors and tourists, as Malaysia is appealing due to the weaker ringgit and its rich culture,” he says during our interview at the newly revamped dining space of Botanica + Co Bangsar South in Kuala Lumpur.

Botanica + Co is one of the food and beverage (F&B) brands under UOA Hospitality, which also manages hotels and residences (VE, Invito, Komune Living and Komune Living & Wellness) and conferences, events and co-working spaces (Connexion, Astana and Komune Co-working). Its other F&B brands are Potager, Entier, Botanica Deli and Makan Makan. The company has also ventured into the caregiving business via Komune Care, a joint venture with Care Concierge.

While property development remains its key business, venturing into the hospitality and wellness business has enabled the company to offer complementary amenities and services to its property developments, a strategy that has been working well for it.

UOA Development’s prudent management is also reflected in its strong balance sheet and net cash position, with cash and cash equivalents remaining robust at RM1.8 billion as at FY2023, allowing the company to seize development and land acquisition opportunities when they arise. Its total gross development value of ongoing and upcoming projects and undeveloped land stood at RM13.8 billion in the same financial year.

“With the launch of Bamboo Hills Residences and Duo Tower Bangsar South this year, we expect our revenue to improve,” says Kong.

He talks more about the company’s plans and latest projects in the interview excerpt below.

C S Kong: We have been busy with our ongoing projects, Laurel Residence in Bangsar South and Aster Hill in Sri Petaling, and we have launched Bamboo Hill Residences at our Jalan Ipoh development and commenced construction of Duo Tower in Bangsar South.

As the latest phase of our 27-acre Jalan Ipoh development, Bamboo Hills Residences is a freehold development comprising a total of 2,517 units over three residential blocks and a retail podium on 11 acres. Block A and Block B, comprising 755 and 881 units respectively, were launched in 1H2024 and are doing quite well, with a combined take-up of 65%. We are currently in the planning stages for Block C.

The take-up of Bamboo Hills Residences has been quite positive due to the project’s location and that it is a transit-oriented development directly linked to the Kentonmen MRT station. The development’s retail podium will offer lifestyle conveniences including a grocer, food court, pharmacy, F&B outlets and childcare services. It will also have a wellness component offering care services for the elderly.

Slated for completion in 3Q2028, Bamboo Hills Residences was launched following the completion of the Bamboo Hills dining enclave. We always build the facilities first, before building the residences, so that when people buy, they can see that all the facilities are already there.

We are also going to have a new grand ballroom at Astana — the event venue at Bamboo Hills. The new 6,000 sq ft event hall will complement the existing 2,100 sq ft A-frame glasshouse event space that can currently accommodate up to 100 guests. The new ballroom, which is currently in progress, is set to open in early 2025 and will be able to accommodate up to 400 guests. This space is ideal for corporate events, weddings and other special occasions because of the environment we have created.

We are exploring the possibility of introducing padel courts to the community at Bamboo Hills soon.

As for Duo Tower, it is the latest Grade-A office development within our 60-acre Bangsar South integrated master-planned development and comprises two towers — the 35-storey Tower A and the 19-storey Tower B. Tower A will comprise 239 units of flexible strata offices spread across 24 floors, offering built-ups ranging from 1,389 to 3,025 sq ft. A bigger floor plate of up to 20,000 sq ft is also available as the walls between the units can be merged to cater for a larger open space. The big floor plate can accommodate larger businesses, corporations or organisations. Tower B will be owned by UOA Group.

Duo Tower will offer something unique to the office market as it will feature up to 20 wellness facilities across two levels, including a fitness gym that will be operated by an outsourced operator. The office towers will also have its own six-acre park. Tenants can go to the gym or the park without needing to leave the property. The office towers will also be future-proofed with green features such as electric vehicle charging bays and solar panels. Duo Tower is expected to be completed in 2027.

As for our ongoing projects, Laurel Residence and Aster Hill are doing very well and we are very happy with their progress.

Comprising 1,260 units in two blocks of 42-storey residential towers, Laurel Residence is about 72% taken up and is slated to be completed by year end. As for Aster Hill, it comprises 1,150 units in two 32-storey residential towers and is about 62% sold. The project is slated for completion in mid-2027.

We ventured into the eldercare business via Komune Care, a collaboration with Care Concierge, because Malaysia is heading towards an ageing population very soon, and we want to provide an environment to take care of them.

We first introduced the eldercare services by Komune Care at Komune Living & Wellness (KLW), an integrated co-living and wellness hub in Cheras, to cater for the lifestyle needs of senior citizens and to complement the concept of KLW, which encapsulates a dynamic, integrated, community-focused approach towards wellness.

We launched KLW in May 2022 and we already have an operating profit, and an average occupancy of 80%, so that is very encouraging. Of the total 718 units at the property, 141 are dedicated for eldercare services under Komune Care and the remaining 577 are operated as hotel units by Komune Living.

Besides being an eldercare facility, KLW is also a place for retirees, and around 30% of the units are taken up by long-term stay residents including retirees. The property offers wellness facilities such as a traditional Chinese medicine centre, medical and dental clinics, physiotherapy centre, wellness centre, spa and a confinement centre.

Through our experience with KLW, we found that the eldercare services have a profound impact not only on the well-being of the elderly residents but also the community as a whole.

Encouraged by the positive outcome, we are considering the possibility of introducing similar complementary services by Komune Care to Bamboo Hills. We think that eldercare is an important facility to have in any residential development because many young couples work and employing a helper can be very costly. Similar to sending their children to childcare, they can also place their elderly parents at an eldercare facility and pick them up after work. I believe this is one of the reasons Bamboo Hills Residences has received a very positive response.

We are planning to build another office adjacent to our existing UOA Business Park development in Shah Alam because we still have a piece of land there. The development is linked to the Subang Jaya KTM and LRT stations so it is very convenient. The offices at the business park are also doing quite well and the rentals are quite good. We’re looking at launching this sometime next year.

We also have a proposed future project in Cyberjaya on 17 acres that is currently in the planning stages with plans for a retirement village concept with the possibility of introducing a high-rise apartment with clubhouse facilities and to expand the senior living and eldercare services there. We believe there is demand for this offering. Similar to Bamboo Hills, we are going to build the facilities first.

We will continue to focus on potential strategic locations with good connectivity to major transport links and proximity to essential services such as schools, medical centres and shopping. Our approach centres on integrating essential components that prioritise community needs, convenience and accessibility.

We will also explore new opportunities for development projects in areas with high potential within and outside the Klang Valley.

Apart from development activities, UOA will also continue to grow and broaden the base of our recurring income. Rental and hospitality are major contributors to our recurring income, and we are also expanding to F&B and wellness.

Improving cost and operating efficiencies is also important to us as they are key to our business continuity plans. We will continue to monitor market conditions and adjust our strategies based on emerging trends and opportunities.

We are cautiously optimistic about the future of the property market as we navigate the complexities of a rapidly changing world. The lessons learnt from the Covid-19 pandemic and global economic challenges have fostered a more agile and adaptable market.

Despite market uncertainties, demand is still robust for both residential and commercial properties. Hence, we will continue to evaluate our new project plans and focus on market-driven products with attractive price points in line with market demand to better position our upcoming developments.

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