This article first appeared in City & Country, The Edge Malaysia Weekly on December 16, 2024 - December 22, 2024

In the late 1980s and 1990s, Subang Parade was the shopping centre to hang out at. Many who grew up during that period would have fond memories of outings to the mall.

Opened in 1988, it is located in Subang Jaya’s SS16 commercial centre and is a 25-minute drive from Kuala Lumpur via the Federal Highway. For a time, it was the longest shopping centre in Southeast Asia. The mall has a net lettable area of 520,000 sq ft and currently has 83 tenants and an 88% occupancy rate.

In 2006, the mall was acquired by Hektar REIT (KL:HEKTAR), a real estate investment trust that focuses on retail property. Its other retail assets include Mahkota Parade in Melaka, Central Square in Sungai Petani and Kulim Central in Kulim, Kedah, and Wetex Parade in Muar and Segamat Central in Segamat, Johor.

The REIT diversified its portfolio by acquiring Kolej Yayasan Saad Melaka (KYSM) in July and is exploring industrial assets in the northern and central regions of Peninsular Malaysia.

To ensure Subang Parade’s longevity and relevance in an increasingly competitive market, Hektar REIT has refurbished the mall, one of its prized assets.

“The first thing we did [after the acquisition of Subang Parade] was extensive market research. Between 2006 and 2007, Hektar carried out an asset enhancement initiative (AEI) on Subang Parade, spending about RM30 million to RM40 million,” the REIT’s chief operating officer Sabrina Halim tells City & Country in an interview.

The works included redoing the flooring, lighting and food court. According to Sabrina, the occupancy rate rose to 100% after the refurbishment.

Further AEI on Subang Parade followed. In addition to enhancing the building, the REIT reviewed its tenant mix and added a cinema in 2011. It also replaced Cold Storage supermarket with Village Grocer as the anchor tenant a couple of years before the pandemic.

“It was MBO cinema then; now, it is GSC. Meanwhile, Village Grocer gave the mall a new and modern feel and look. We were going to do another round of AEI during the pandemic but due to the many restrictions imposed during that time, the AEI activities were put on hold,” Sabrina says.

When the pandemic ended and crowds returned to the malls, Hektar REIT decided to embark on a new round of AEI, estimated to cost RM41 million. 

She says RM17 million will be spent on replacing all the lifts and escalators over three phases, beginning last December.  Phase 1 was completed in November while Phase 2 has just started. The entire exercise is expected to be completed by 2026. 

The remaining RM24 million will be spent on giving the interior and exterior a facelift. This will be undertaken in three phases, starting in the first quarter of 2025, and will be completed in 2026. 

“Phase 1 will cover the toilets, corridors, recycling station and flooring, among others. Phase 2 will carry out more major internal works and finally Phase 3 will touch on the facade, place-making areas, and a brand new kids’ zone,” she says.

Sabrina explains that prior to the start of the refurbishment, exit surveys were done, along with surveys with focus groups to determine customers’ preferences. The data showed that the mall attracts many young families and those in the upper-middle-income group. As such, the AEI will open up new spaces and bring in tenants to cater for these groups.

“Subang Parade over the years did very well with traditional retailers selling baju kurung and the like, and when people talked about buying traditional outfits, they would think of Subang Parade. In the early years, we saw the demographics — 40% to 45% of customers were Malay — and because those traditional retailers did well, there were many of such tenants.

“When we carried out studies recently, however, we realised the demographics had changed. So, now we are focusing on the non-Malay groups. And we realised that the high spenders are also the non-Malays. So, we have introduced [Chinese restaurant] Oriental Parade, which takes up about 9,000 sq ft, and it has been doing very well since it opened in August.

“The other component that we want to add is the children’s category because we have a lot of families. Our kids’ zone is designed to be an engaging and multifunctional space that caters for children under 11, providing a safe and stimulating environment for play, learning and creativity. Given that the newly launched Game On Sports Hub targets older children, this zone will focus on activities suited for younger ages,” she says.

Some key features in the kids’ zone, Sabrina highlights, are spaces for interactive play, edutainment, and cultural and role play, as well as educational and thematic sections. There will also be retail spaces providing products for expectant mothers and little ones, a toy store, as well as baby and children’s clinics.

“Interest in pickleball has grown recently and we have been approached by pickleball companies that would like to create a concept of pickleball and F&B. That is something we are considering.

“The design of Subang Parade is very closed up because at the time it was built, everyone wanted the air-conditioning. But, now, everyone prefers al fresco; they want to see life outside [the mall]. So, we are looking at creating communal spaces and activating spaces like bazaars, performance spaces, things that bring the community together.

“So, it is not just a place for you to shop, but it is a place for you to dine, play and be together and meet the people in the community,” Sabrina elaborates.

The refurbishment exercise will be done in stages. Among other things, the escalators and lifts will be replaced in three phases over two years, she adds.

Incidentally, the bubble lift, a unique characteristic of Subang Parade, will be refurbished to retain its charm and be a link to the past.

Other works include the replacement of the flooring and upgrading of the toilets. All main entrances will be given a facelift and the car park will have a licence plate recognition system, as with all of Hektar REIT’s other assets.

In the meantime, new tenants will continue to be brought in. Padi House, Molly’s Pizza and The Farm & Chan Rak BBQ have started operations. Fly Project and Swet Fitness offer outlets to burn off calories while Gajeto sells gadgets and other mobile related products. For the young ones, there is Game On Sports Hub and Lil Ninja Dojo.

Sabrina says Subang Parade caters not only for the roughly 800,000 residents in Subang Jaya but also a wider catchment area that covers Shah Alam and Puchong, with between 1.2 million and 1.5 million residents.

To further create a feeling of community, parts of the mall will be cordoned off to allow children to ride their bicycles indoors. In addition, a shuttle bus service is being considered to cater for the elderly and residents in the vicinity who do not drive.

A recycling centre is also on the cards. “ESG (environmental, social and governance) is a big thing for Hektar. We are looking at opening recycling centres, which will serve as a platform to educate children, encourage volunteerism and inspire creativity, such as transforming recyclable materials into art or perhaps an engineering project that could transform the world one day. Through collaborations, workshops and competitions, we hope to strengthen connections and create a shared sense of belonging to the mall,” Sabrina says.

For greater engagement with customers, the REIT is keeping up with new technology and developing a loyalty app.

“We are in the midst of exploring new software upgrades to allow seamless integration between existing and potential new software [for] the tenancy and property management aspect.

“Furthermore, a loyalty app covering our six malls is in the final stages of development with the intention of rewarding customers and enhancing their experience during their visits.

“We will also incorporate sustainability features with the integration of the loyalty app and on-site recycling centres to encourage shoppers to contribute to the environment and reward them for it. The app is expected to go live in the first half of 2025,” says Sabrina.

Tenants will receive a handbook, which is in the final stages of completion,  from Hektar REIT, with information on ESG and related initiatives such as waste segregation. Plans to install solar panels are in the research stage, she adds.

Ultimately, Sabrina says, Subang Parade’s focus is on the community and providing space for families and friends to interact.

“What we are trying to do with the design elements is to turn the mall into something modern-looking while retaining the charm. We are trying to redefine what a community mall is.”

Through these efforts, Hektar REIT aims to preserve the 36-year-old mall’s legacy while fostering new memories and experiences for a fresh generation of customers and businesses.

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