Monday, November 16, 2015

Transforming PJ's skyline

By Sharen Kaur

KUALA LUMPUR: THE conversion of land use from industrial to commercial at Section 13 in Petaling Jaya, Selangor, has resulted in a boom and bust of mixed-used developments, which are spurring economic activities.
 
  Initially an industrial enclave, the change in Section 13 over the years is aimed at creating a vibrant and sustainable neighbourhood.
 
  According to the Petaling Jaya City Council Special Area Plan for Section 13, the area covers 101.96ha and its pioneer developments include the integrated development Jaya33 and office development Plaza33 by Jaya33 Sdn Bhd, as well as Tetap Tiara Sdn Bhd's Jaya One.
 
  Recently completed projects included the 85-bed Columbia Asia Hospital and Inspiration Group's RM500 million integrated development called CentreStage.
 
  There are several ongoing and pipeline developments with gross development value (GDV) exceeding RM8 billion. These include Pacific Star by Island Circle Development Sdn Bhd and PJ Midtown by IOI Properties Group Bhd and Sime Darby Brunsfield Holding Sdn Bhd.
 
  Paramount Property Development Sdn Bhd is looking to develop a project with a GDV of RM730 million next to Sin Chew Media Corp Bhd in Jalan Universiti. It will comprise four office towers, two residential towers and 78,000 sq ft of retail space.
 
  Another development in the pipeline is Fraser Square, which is being undertaken by a joint-venture entity between Fraser & Neave Holdings Bhd (F&N) and its sister company, Singapore-based Frasers Centrepoint Ltd (FCL).
 
  Construction on the project is expected to start in 2017.
 
  The FCL group is a prominent property developer with impressive track records in Singapore, China, Australia, New Zealand, Thailand and the United Kingdom.
 
  In 2013, the joint-venture company obtained approval for its Master Development Plan and went on to enhance the project's design by drawing upon FCL's expertise.
 
  Despite obtaining building approval, the launch of Fraser Square had been postponed due to weak market sentiment.
 
  F&N chief executive officer Lim Yew Hoe said recently that the company expects to make an update on the development by the middle of next year.
 
  "We are taking advantage of the softening market to look at a more suitable concept for the land with our development partner. The last concept was concluded more than three years ago, so it is a blessing in disguise as we will be building based on current market trends. Once we agree on a new concept, we hope to implement everything as soon as possible and announce something in the next six months," Lim said.
 
  Fraser Square is expected to change the Section 13 skyline upon its completion as it will feature a 50-storey corporate office tower.
 
  The project is also expected to woo investors and property buyers because of its location, product offering and F&N's reputation.
 
  Although F&N is a food and beverage company, it has undertaken a few projects in the past. Its first foray was turning its former factory land at Jalan Foss into a vibrant commercial spot called the Fraser Business Park.
 
  Fraser Square will sit on a 5.15ha site in Section 13 that formerly housed F&N Dairies Malaysia's manufacturing plant.
 
  The project has been earmarked for an integrated residential and commercial development encompassing three 32-storey serviced apartment blocks with about 900 units, a 50-storey corporate office tower, a four- or five-star hotel with 16 floors, and a SoHo (small-office-home-office) building.
 
  Based on the current plan, Fraser Square is expected to generate a GDV of RM2 billion, but this may increase as the product offering for the project is still being finalised, said F&N chief financial officer Soon Wing Chong.
 
  The serviced apartments would offer units of various types and sizes to meet the needs of a wide range of buyers - families, individuals or businesses.
 
  The SoHo units will measure less than 500 sq ft, Soon told Property Times.
 
  On product pricing, he said the joint venture company was still finalising it.
 
  It was reported that F&N postponed Fraser Square over concerns that it might not get its asking price, said to be as much as RM1,200 per sq ft (psf), for Trilight Residences - the three serviced apartment blocks.
 
  F&N had planned to launch Trilight Residences - Phase 1 of the Fraser Square project - with a total GDV of RM600 million last April.
 
  Sources said F&N may re-look at the launch price and it could start from RM850 psf to RM1,100 psf.
 
  Early this year, Island Circle Development sold its three-bedroom 988 sq ft serviced suites from RM914,000, or RM925 psf, while IOI Properties and Sime Darby Brunsfield sold theirs at RM850 psf.
 
  "The timing and pricing for the Phase 1 launch will depend on market sentiment. We have cleared the site... when we finally decide to launch, it will happen quite fast.
 
  "We are still fine-tuning the concept and re-looking the product offerings. We believe there is an opportunity for a premium hotel in Petaling Jaya and have yet to decide whether it would be a four- or five-star property.
 
  "There will be a neighbourhood mall for Fraser Square. It would be something like Bangsar Village in Bangsar Baru. We have the building approvals in place.
 
  "Next is the case of alteration to the plan. We will re-submit the approvals as there will be changes to the plan," said Soon.

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