Gold Frieden Development taps into growing potential of Bentong

JUST an hour outside Kuala Lumpur, the quaint town of Bentong in Pahang is gaining interest from some developers. Some expect the small town to see growth in demand for residential, hospitality and commercial property.

Hwa Ser Piow (pictured, right) who is one of the founders and directors of Golden Frieden Development Sdn Bhd, hails from Terengganu and saw the growing potential of this small town, which is famous for its ginger and durian. Hwa has decided to make Bentong the location of his first property development project.

A professional civil engineer, Hwa has 12 years of experience in township, commercial, residential and theme park development. He was the site supervisor during the construction of Universal Studios, Singapore.

The project in Bentong is a joint venture with the two sons of the landowner, who also saw the great growth potential of the town. The trio decided to set up Gold Frieden Development and jointly develop the 4.3-acre tract, located along Jalan Bentong-Raub, the main access road to Raub, Kuala Lipis and Gua Musang from Kuala Lumpur.

Called One Bentong , the project comprises 39 units of freehold 2- and 3-storey shopoffices. Priced from RM859,000, the units have built-ups ranging from 2,640 to 6,620 sq ft.

Hwa tells City & Country that development further east has grown significantly in recent years, especially in Bentong due to its proximity to the Klang Valley. It has become one of the main gateways of three East Coast states — Pahang, Terengganu and Kelantan — to Kuala Lumpur.

“The Karak and East Coast highways have improved the accessibility of the town, bringing in more crowds. This is the main reason we decided to start our first project in Bentong,” he says.

Situated 75km from Kuala Lumpur, Bentong is both a town and district in Pahang. It covers an area of 183,112ha, but most of the land is hilly and only the portion located along the Kuala Lumpur to Gua Musang Highway is flat.

Hwa says the hilly areas are suitable for residential purposes, especially landed houses and bungalows, and hospitality property development such as resorts and villas.

He notes that flat areas located along the main road are more viable for commercial development as the infrastructure and access roads are still in the development stage.

“Our land is flat, located along the main road and is suitable for commercial development as tourists or business travellers who drive to Bentong, or are heading to Raub, Kuala Lipis and Gua Musang, will see our development,” he says.

To make One Bentong a commercial hub for the small town, the whole development is planned with one-way traffic flow, which allows the cars to pass the frontage of each of the shopoffices, giving business owners equal exposure to customers.

“This concept, which we see in city areas, is quite new to Bentong. Developments here are mostly quite conventional, with one or two rows of shopoffices fronting or in the middle of a residential development,” says Hwa.

He anticipates that One Bentong will be the new commercial hub or tourist zone in the future as it is located five minutes away from the town area — where the famous Jalan Chui Yin, or Bentong Walk, is located — and close to villas and resorts such as Caravan Serai and Casabrina Vacation Villa.

To cater for future needs, One Bentong has a modern, contemporary design that would appeal to the younger generation.

“Most residents of Bentong are landowners or business owners and most of their children either work or study in the city centre or overseas. Property has become the most preferable investment tool for them, with some buying for capital appreciation and some for their children,” says the 36-year-old developer.

Shortage of commercial property

Bentong has become another hot spot for city dwellers who want a weekend getaway but do not want to drive a long way away from home. That has spurred local tourism-related business activities such as food, beverage and agricultural products, including ginger, durian, tofu puffs and soya sauce as well as homestay facilities.

As tourism activities grow, there is increasing demand for commercial properties in the town area. However, the current supply is limited as there are not many new developments and most of the shopoffices in the town area are nearing 50 years old.

Hwa says there is a shortage of commercial property in Bentong due to the hilly land. City & Country observed during the trip to Bentong town that most of the shops are occupied and there is tremendous potential for franchises to establish their presence there.

Hwa says most of the shopoffices in Bentong are 30 to 40 years old and the monthly rent for a 40-year-old shopoffice  ranges between RM3,500 and RM4,500.

As business activities get more robust, Hwa observes that younger generations have discovered business opportunities in Bentong and plan to set up shop in the town. Hence, investor attention has slowly shifted from residential to commercial properties.

“Most of the businesses here are operated by locals, but there is not much choice for tourists. Food and beverage outlets, franchise restaurants, grocery and convenience stores are in demand in Bentong,” says Hwa.

Gold Frieden Development started previews in December and has attracted some interested buyers, including locals and those from the Klang Valley, who want to invest in commercial property. Currently, 40% of the units have been taken up.

“The marketing roadshow will start in February and we plan to launch the project in March. The construction of the 4.3-acre commercial development will start in the second quarter of this year and is expected to be completed by 2018,” says Hwa.

He notes that some of the buyers of One Bentong are buying for investment purposes and some are buying for their children — hoping that one day the latter may come back to start a business and live in Bentong with them.

Gold Frieden has a rental investment scheme for buyers who do not have the time to handle rental matters with a 5% guaranteed rental return for the first two years.

“This is just an option; we want to encourage more new businesses to come into the area. Upon completion, if the owner wants to operate their business here or intends to find the tenants on their own, they can choose not to take the rental investment scheme,” says Hwa.

On upcoming plans, Hwa says the current focus will be on One Bentong, but the company is exploring potential landbank for residential or commercial development in and around Bentong, with a gross development value of RM30 million targeted for next year.

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This article first appeared in City & Country, a pullout of The Edge Malaysia Weekly, on Feb 15, 2016. Subscribe here for your personal copy.