Redefining luxury living

 

GIVING a property man 360 acres of prime land is like giving an artist a large canvas to paint on. And like an artist, Sime Darby Property Bhd managing director Datuk Jauhari Hamidi intends to produce a masterpiece development called ALYA Kuala Lumpur.

The word “alya” has several meanings — heavenly, lofty, ascension. And it was chosen to showcase Sime Darby Property’s intent to redefine luxury living and earn its place as a builder of luxury homes.

“When people talk about Sime Darby Property, they immediately think of Subang Jaya, Ara Damansara and Bandar Bukit Raja,” says Jauhari. “This is why we are moving on from being just a township developer and venturing into the high-end segment.”

Hence, what was Kuala Lumpur Golf & Country Club (KLGCC) resort, which referred to both the golf club and residential development, has been rebranded as ALYA Kuala Lumpur, while the golf club is now called TPC Kuala Lumpur.

The 360-acre ALYA is nestled in a prime neighbourhood that includes Damansara Heights and Bangsar, with the lush Bukit Kiara forest reserve just next to it. It has good road connections to the city centre and Petaling Jaya but step inside, and it feels like a sanctuary from the hustle and bustle of the city.

There are eight development parcels with residential, commercial, retail and hospitality components. The gross development value of the project is estimated at RM8 billion.

The centrepiece of ALYA will, of course, be the 36-hole TPC Kuala Lumpur golf course.

Jauhari elaborates: “When we first thought of the rebranding exercise, we wanted it to be a continuation of the work we had done on the golf course. We spent close to RM200 million in 2010 on upgrading the club and its facilities and we now have one of the top golf clubs in the region.”

That upgrade also saw the club hosting world-class golf tournaments like the CIMB Classic of the US PGA Tour and the Sime Darby LPGA (Ladies Professional Tour).

But when the idea for ALYA Kuala Lumpur slowly began to develop, Jauhari felt it was an opportune time to take the golf course to another level.

“This is where the opportunity presented itself for us to have a TPC golf club,” he enthuses. “TPC Kuala Lumpur is fortunate to be a part of a premier brand, not just in Southeast Asia but one that is associated with the best clubs in the world.”

TPC stands for Tournament Players Club, which is a chain of golf clubs owned and operated by the US PGA (Professional Golf Association) Tour, some of which host top golf tournaments.

Currently, there are only 34 TPCs in the history of the PGA Tour and Kuala Lumpur has the honour for now of having the only TPC outside the US.

“We hope this will create a lot of excitement for both the golf club and the surrounding real estate,” says Jauhari. Typically, real estate surrounding a TPC in the US tends to increase in value.

Raising golfing standards

Associating itself with the TPC network does bode well for both the development and the golf course, especially where quality and branding come into play. In the game of golf, the benchmark remains the PGA Tour and TPC Kuala Lumpur aims to capitalise on that, especially with each TPC organising hundreds of tournaments and comprehensive tours.

The first in line to benefit directly from this rebranding are the club members themselves as they now gain access to the other 33 clubs in the TPC network. This allows members direct access to renowned clubs such as TPC Sawgrass and TPC Boston. “The franchise fees for this alone will cost us US$100,000 per year, which we have signed on as a five-plus-five deal as we need a long-term association.”

Obviously, with the added benefits, the question on most members’ minds would be the additional cost factor. But Jauhari reveals that for the immediate future, there are no plans to impose any extra fees on members.

“We assured our members that our intent to rebrand is to, first and foremost, upgrade the club to a level that is associated with TPCs in the US.” He also reveals that Sime Darby Property is already beginning to see results with increasing requests for new memberships. “Clearly, we foresee more professional and amateur players from near and far wanting to experience the game at TPC Kuala Lumpur because of the higher standards and better quality golf courses and facilities.

“It’s definitely the right affiliation for us and for our golf club as we are associating it with the best in class. We’ve envisioned TPC Kuala Lumpur as the catalyst to further promote Malaysia as a tropical paradise for golfing and leisure to the world.”

However, he is quick to add that despite the club being a critical component, it is still secondary to the branding of the real estate development.

“ALYA Kuala Lumpur takes precedence,” he stresses. “When we decided that this was going to be our master brand, which so happens to be in a golf club, it was only natural for us to upgrade and rebrand the club to follow suit in order to bring the whole development to greater heights.”

More than just a brand name

ALYA Kuala Lumpur is envisioned as a new international destination for Malaysia and it further underscores Sime Darby Property’s continuing contribution to the development and growth of the capital city. It is also a key component of Greater Kuala Lumpur’s goal of becoming a top 20 liveable global metropolis by 2020 as well as one of the economic drivers under the Economic Transformation Programme (ETP).

Overall, the main goal of the development, Jauhari tells us, is to integrate modern living, space planning and facilities with the natural topography and backdrop of ALYA Kuala Lumpur’s unique setting. He stresses that the “bricks-and-mortar roof over your head” adage remains the basic necessity that people want but in the current market, developers have to be creative in order to give consumers something more to suit their lifestyle. “It has to be a product that they can also associate with.”

He stresses that ALYA is not just a brand name but Sime Darby Property’s commitment as one of the nation’s top real estate developers. “This new development has also presented us with an opportunity to redefine luxury living and create a differentiation from other luxury developments in Malaysia. In short, it is a lifestyle promise from what is available in the market right now.”

Bold words certainly but there’s no denying the appeal behind ALYA Kuala Lumpur and what it has to offer investors and homeowners. But Jauhari knows full well that nothing is ever guaranteed in life and in real estate.

Overcoming challenges

The East Residence, for one, has been a thorn in the side of Sime Darby Property for several years now with roughly 40 units of the 112 available courtyard villas and town houses sold. Jauhari admits that the development has been a tremendous challenge for the company but it is beginning to see light at the end of the tunnel.

“We have owners taking possession of the units now and we’re looking to sell off the remaining lots, hopefully by the end of the year,” he comments. “East Residence is important to us as it will create a community for ALYA Kuala Lumpur. And this starts once people start to move in.”

The softening economy is also an issue that is currently affecting the property segment and he opines that one of the main reasons higher-end developments are struggling in today’s market is people having the luxury of time on their hands.

“It’s quite normal for the property market to go through a cycle and we are fairly confident that it will bounce back and we will see some positive movement towards the middle of next year,” Jauhari says. However, he states that despite the current market condition, Sime Darby Property’s other developments are performing admirably.

He believes that the success of any business lies in how a company engages and communicates with its customers. Never one to back down from any challenge, he has oftentimes personally initiated dialogue sessions with both residents and owners to hear their thoughts and grievances.

“I remember when we had some problems with East Residence, we organised an engagement session with our customers. As a business, you need to always have an open line of communication with your customers because they are the sole reason you are in existence as a business today.”

Creating Malaysia’s most coveted address

Jauhari is eager to get the ball rolling with the launch of Senada under ALYA Kuala Lumpur this week.

Senada will encompass 429 residential units spread across two towers with 250, 000 sq ft of commercial space and 300,000 sq ft of retail space, which will take up four floors. Priced between RM1,100 and RM1,300 psf, Senada delivers a competitive price point, which is great value for what Jauhari considers a six-star property.

 “I can say that going forward you will not be able to get anything in ALYA at these price points,” he says confidently.

As an added incentive, each purchase of Senada comes with a detachable TPC membership. “We are offering this because we want all our purchasers to enjoy the facilities. As you know, we no longer have permanent memberships to sell, so depending on the unit, each purchase will come with a social membership without golf or a term membership (with golf) ranging from one year to five years,” he adds.

 “We want to present customers with the opportunity to own a property at this price with these added benefits because we believe the value is just going to go up.

“Effectively, this will present one of the few opportunities for our customers to own not only a property in a coveted address but also be a part of TPC Kuala Lumpur. I believe the response is going to be encouraging (in this market).”

Jendela, which will be situated near the exit to Taman Tun Dr Ismail, will encompass both residential and small retail components. It is slated to be launched next year.

The balance of ALYA Kuala Lumpur will involve the building of townhouses, high-end bungalows as well as the development of an office block, retail and possibly a hospitality component as well. In total, Sime Darby Property is looking to complete the entire project by 2025.

Jauhari also reveals that the company has already engaged MRT Corp and obtained a provisional station within the area. “In any development, ease of transport is key and to ensure that ALYA is well connected, there will be an MRT line passing through as well.”

Steering towards the future

ALYA Kuala Lumpur is undoubtedly an important development for Sime Darby Property but it also serves as an indication of where the company is headed.

“We need to constantly evolve and embrace new concepts,” Jauhari emphasises. “We are injecting new blood into the company, especially those with expertise in high-rise and high-end developments as well as digital applications and social media, which is vital for customer engagement.”

Sime Darby Property’s experience with the Battersea development in London can also serve as a blueprint for the company’s future developments here, explains Jauhari. “We can replicate that success in Kuala Lumpur. We have to use and leverage our experience in order to maintain our position as one of the leading developers in the country.”

Indeed, ALYA Kuala Lumpur serves as a statement of intent on where Sime Darby Property is moving towards, but Jauhari is certainly not resting on his laurels. He has already envisioned turning the development into a destination and gathering space for KL-ites.

“To see this through, we are looking at landscape development and also studying the possibility of bringing in other international sporting events to ALYA and TPC Kuala Lumpur such as the WTA (tennis) Tour, which was held last year,” he elaborates. “This, along with the four-year extension of the PGA Tour, which will effectively see the CIMB Classic being played here till 2020, further extends the value of the development and raises its appeal as a luxury lifestyle brand.”

Ultimately, Jauhari stresses that he envisions ALYA as a brand that will be synonymous with the premium product of Sime Darby Property.

“With every project that Sime Darby Property does, I would like to believe that we cater for what the market truly wants. In the case of ALYA Kuala Lumpur, we believe that the premier location that we have will result in our creating the best possible product in order to attract the target market that we are pursuing.

“It’s been a challenge for the company, the team and me to undergo this brand positioning but I am positive it’s a step in the right direction for us. It will serve as a model of a Malaysian luxury lifestyle brand that can be replicated worldwide for our developments abroad. That is the challenge for me and the team and we are more than ready to pull the trigger,” explains the Sime Darby Property MD.

 

A benchmark for excellence

Living the high life will take on new meaning with the launch of Senada Kuala Lumpur by Sime Darby Property Bhd as the project is set to be the gold standard in luxury and sophistication.

The RM800 million Senada Kuala Lumpur is the maiden project within Sime Darby Property’s ALYA Kuala Lumpur in Bukit Kiara, a 360-acre integrated development.

ALYA Kuala Lumpur is the master brand repositioning of the development formerly known as Kuala Lumpur Golf & Country Club resort.

 Senada Kuala Lumpur will be sited on 4.3 acres and feature two residential towers (Tower A: 22 storeys with 259 units; Tower B: 21 storeys with 170 units), an office tower and a four-storey retail podium.

The latter two projects are still in the planning stage but the residential towers will be open for sale on Sept 10. The built-ups range from 700 to 1,900 sq ft, with 16 different layouts that offer 1, 2, 3 and 3+1 bedrooms. Selling prices are from RM1,100 to RM1,200 net psf.

Sime Darby Property managing director Datuk Jauhari Hamidi believes this is an opportunity not to be missed by investors and those seeking to stay close to the city centre and yet be away from the hustle and bustle.

“This is a nice entry-level product because some of the (other) places are going for RM1,300 to RM1,500 psf already. We don’t want to start at RM1,300 net psf because we want to bring in the crowd first. We want to give people the opportunity to reside in ALYA Kuala Lumpur,” he says.

Moreover, freebies will be given at the launch to sweeten the deal for potential buyers and investors, he adds.

One of the benefits of living in Senada Kuala Lumpur, besides the view of TPC Kuala Lumpur (formerly Kuala Lumpur Golf & Country Club), is a term membership to the golf club that is linked to the project so that owners or tenants can use the club facilities.

While both towers will have units with a golf course view, some units in Tower A will look out to Damansara Heights, and some Tower B units will have a view of the facilities.

While Jauhari is excited about the new ALYA brand and Senada Kuala Lumpur’s launch, he is aware of the soft market conditions plaguing the high-end high-rise market.

However, the recent launches of the developer’s Quarza and Cantara Residences have seen a take-up rate of 40% to 50%, which Jauhari believes is a good performance in view of current market conditions.

“Usually, by the time we complete our projects, all our units are sold out,” he says, adding that he believes the market will start to improve by the second half of 2018. Senada Kuala Lumpur is scheduled for completion in 2020.

This article first appeared in Options, a pullout of The Edge Malaysia Weekly, on Sept 12, 2016. Subscribe here for your personal copy.