New direction for JKG Land

KEDAH-based property developer JKG Land Bhd may not be known by many in the Klang Valley but this could soon change. It is planning to make its presence felt with The Era Duta North in Jalan Segambut, Kuala Lumpur — its first development in the central region. A preview of the project will be held by the end of this month.

Formerly known as Keladi Maju Bhd, the company has been involved in property development for more than three decades, building mainly residential units, offices and light industrial factories. Its land bank in the northern region currently stands at 1,276 acres.

The change in name reflects the developer’s new direction going forward, says JKG Land managing director Datuk Teh Kean Ming. He adds that the management is repositioning and revitalising the company as it is moving to develop land in the central region.

JKG stands for Jasa Kita Group — a group helmed by JKG Land non-independent non-executive chairman Tan Sri Robert Tan Hua Choon, according to Teh.

“The industrial land of a few other companies — in which our chairman is the common shareholder — in the central region have matured and are ready for redevelopment,” he explains.

The central region

Tan, who is widely known as the small-cap king, sits on the board of several listed companies such as FCW Holdings Bhd, PDZ Holdings Bhd, Jasa Kita Bhd, Marco Holdings Bhd and GPA Holdings Bhd.

JKG Land had acquired the site for The Era Duta North from Goh Ban Huat Bhd (GBH), a ceramic products company that Tan previously had a substantial stake in. In 2014, GBH sold nine parcels in Jalan Segambut to the then Keladi Maju for RM192.4 million cash.

Teh says JKG Land’s future direction, vision and strategy are reflected in its logo — red represents passion and is also the corporate colour of Keladi Maju. The wording, he adds, is longer in length and is in bold, representing the boldness and forward-looking attitude of the company.

“This is what we want to show the people in the Klang Valley going forward,” he adds. “As a newcomer, we face challenges. People don’t know us but we believe in what we have for the market. The Klang Valley is congested with a lot of developers ... So, we are thinking of how we can differentiate ourselves and let people know that we are a serious developer.”

JKG Land is also looking into how it delivers its projects, says Teh. “We want to deliver the project exactly as we have promised, or even beyond that.

“To do that, we must have a deep conviction in ourselves. We are not chasing numbers … we are taking baby steps, one at a time. When we look at this piece of land in Jalan Segambut — our first in the Klang Valley — we are thinking of how we can differentiate ourselves. Once we have decided on that, it will be about how we can communicate it to the market and convince the buyers, and eventually how we deliver the project.”

Teh joined JKG Land in July last year, taking over from Datuk Chuah Chin Ah, who has been promoted to executive deputy chairman. Teh was formerly the managing director and CEO of IJM Corp Bhd.

The Era Duta North

The RM2.1 billion project is located on part of a 14.86-acre freehold tract. This first parcel, which will have six serviced apartment blocks on top of a 3-storey retail podium and an 8-storey car park podium, will be launched over three phases.

These blocks will have 53 to 63 floors each and offer a total of 2,913 units. Once completed, they will be the tallest buildings in Segambut, says Teh.

The RM583 million Phase 1 — offering 921 serviced apartments in two blocks — is scheduled for a preview by the end of this month. The layouts will range from 1+1 (one bedroom plus one study) to dual-key.

With built-ups of 631 to 1,300 sq ft, the units will be priced at RM600 psf on average. The two blocks and the retail portion below them will be completed in 2020.

Facilities will include a gymnasium, water pavilion, swimming pool, multipurpose hall and roof garden. The maintenance fee will be below 30 sen psf.

The remaining phases will be launched progressively, depending on market demand.

The Era Duta North is accessible via the Duta-Ulu Kelang Expressway, Sprint Expressway, Jalan Tuanku Abdul Halim, Jalan Ipoh and Jalan Kuching. Located next to Sungai Keroh, it is also 5km away from the Matrade Exhibition and Convention Centre, Mont’Kiara and Publika.

Teh believes The Era Duta North — as the first redevelopment in Segambut — will help set a benchmark for the area. The site was previously occupied by industrial properties.

JKG Land is also in the midst of getting an approval to build a link bridge across Sungai Keroh to Jalan Putramas in Dutamas. Only residents of The Era Duta North will be able to use the bridge, which will be under the developer’s management.

“This is how we will differentiate our project. We also hope that with the bridge, this development will not add to the congestion in Segambut. We want to help create better traffic flow for the development and the area.”

The 277,000 sq ft retail podium, meanwhile, will be retained by the developer so that it can control the tenant mix. There will be a supermarket, food and beverage outlets and supporting services such as a clinic and hair salon. The retail podium will be opened to the public, with a dedicated entrance to the non-residents’ car park.

“The size of the apartments is suitable for all, including upgraders, young executives, young families or even parents buying for their children,” says Teh. “For the retail component, there is no fixed number of units, so there will be flexibility for the retailers that are coming in. It is not too big and I think it is enough to cater for the needs of the area. Nowadays, people don’t like to go to big supermarkets, except when they are bringing their family along. We also want the retail component to grow organically and ensure it will be successful.”

He explains that this is part of what JKG Land is doing for the area through the project, which is to bring back the things that have been “lost” over time, such as greenery, security and convenience.

“Segambut is messy and noisy with heavy traffic. It is also full of old properties,” says Teh. “Several decades ago, we had a lot of trees and a river, and as children, we could play hide-and-seek without worrying about security. We could also just walk to the sundry shop to buy groceries. Those days are gone. Our approach here is to bring back these things that are lost.”

In The Era Duta North, the developer plans to have a 2.2-acre landscaped deck and 1.2-acre knee-high wetland. The retail podium will provide residents with the convenience of being able to buy their groceries on their doorstep.

“We are doing all these things in a modern setting, where they can play, walk and shop in a safe environment. There will also be a boulevard for people to stroll along,” Teh explains. He says the sales gallery, which has a well-landscaped area and water feature, gives an idea of their company’s concept of green surroundings. “We have big trees and we want to create a forest where people can walk around and relax.”

Despite the soft market, JKG Land is confident that the project will receive good response due to the location and relatively lower price entry point. Teh believes that there is still underlying demand as there is a group of people who still want to buy properties, but just at a lower price.

“It will depend on the developer’s skill to build properties that fit the demand,” he explains. “We look at what the market can pay. As a newcomer, we are willing to take on the challenge by working with a low profit margin to give the best to the market. We will also put in amenities that can be easily maintained. For example, we are thinking of using treated water in the wetland.”

James Wong, managing director of VPC Alliance (M) Sdn Bhd, notes that the average selling price of RM600 psf is reasonable, based on the current transacted price of RM613 to RM668 psf at neighbouring developments such as Putramas III and Royal Regent.

The link bridge will also improve the accessibility of the development from Jalan Kuching.

“The density is considered high at 196 units per acre,” he adds. “But as it is located near Mont’Kiara, Dutamas and Kuala Lumpur city centre and with that pricing, there is demand for such developments.”

Future launches

The second parcel at The Era Duta North, which is located in front of the first parcel, is tentatively slated for the development of three low-rise office towers.

“We hope to bring in banks at the second parcel and if it is possible, we will call it Banker’s Street,” Teh quips. “It makes sense for banks to come in because this area doesn’t have enough financial institutions and the time has come to do something different.”

He says the northern region will continue to be JKG Land’s bread and butter, while developments in the central region will depend on opportunity. “We are looking to find the right opportunity and land bank before we go in and I think we will have a lot of opportunities here.”

This article first appeared in City & Country, a pullout of The Edge Malaysia Weekly, on Nov 21, 2016. Subscribe here for your personal copy.