City & Country: New blood to invigorate Mutiara Johan

NEW ideas and youthful enthusiasm are expected to be infused into property developer Mutiara Johan Group’s operations with the sons of its founders coming on board. Lee Han Rick, 20, and Leow Si Yuan, 28, the sons of group managing director Lee Kwong Yan and group executive chairman Leow Yuen Leong respectively, may be learning the ropes now, but they hope to make significant contributions to the company in the near future.

Mutiara Johan was established in the 1990s and over the years, has developed over 3,000 homes and commercial properties in prime and fast-growing areas in Kuala Lumpur. Among its residential projects are Casa Mutiara Service Apartment and Binjai Residency, and its commercial developments are Cheras Business Centre and Mutiara Puchong Business Centre.

Leow was formerly attached to Media Prima Bhd and has a multimedia background, while Lee is a graduate of Bond University, Queensland, with a Bachelor of Commerce majoring in property development.

Top: Leow (left) and Lee want to expand the company’s market base to include a younger demographic. Bottom: One of the show units of Tiara Mutiara 2

Both believe they can give a new outlook to the company, and one way of doing it is by using technology, such as social media, to reach out to a wider audience. They want to expand the company’s market base to include a younger demographic.

However, their fathers’ lessons of being prudent and only build what is needed and affordable to the company’s target market ring loud and clear as both men share their thoughts about their entry into the company.

“Being prudent and staying grounded is important,” Leow highlights.

“And we want to create value for people,” Lee adds.

While it may seem like a shoo-in for these young men to enter their fathers’ company, the reality is they understand the need to start from ground zero and work their way up. Having mentors, who are working for the company, will prepare them to take on more responsibilities in future. As both are only in their twenties and their fathers still healthy and involved in the business, it will stand them in good stead to be under their guidance.

“I have been exposed to the real estate and architecture industries since I was young, following my dad around, who is a professional architect turned developer,” says Lee. “Since I graduated, I’ve immersed myself in the company, getting to know it well. I like it — it’s dynamic and, more than anything else, it’s fulfilling to see something you’ve built permanently in your own city.”

Leow, on the other hand, says it was by chance that he joined Mutiara Johan and finds that what he used to do is similar to what he is doing now. “I get to make and create. But there are trials and tribulations too, which is the same as anywhere else.

“The good thing about being here is that you have a better chance of getting exposure and you get fast-tracked. You get to work on things you won’t normally get to do like looking into the financial aspects.”

Conventional wisdom would state that one should work elsewhere before joining the family business, but Lee feels he has not lost out in any way. “For me, at this stage of my life, I will learn as much as I can, and I feel that I can learn the most in my father’s company. You get to contribute and sit in not only one department but also all of them.”

Mixed-use development in Puchong

Mutiara Johan’s latest project is Tiara Mutiara 2, which will be launched on April 19. It is situated in Jalan Puchong, close to Taman Tan Yew Lai and Jalan Klang Lama, and is beside an earlier Mutiara Johan development called Tiara Mutiara. The two projects will eventually become one development when a form of linear streetscape is used to “unify” them.

“About RM3 million will be spent on landscaping and creating an arcade area that synergises both developments,” says Lee, who is fully involved in the project.

Tiara Mutiara was launched in 2010 and buyers took delivery of their units last January. It features a 17-storey serviced apartment block with 403 units, 20 units of 3-storey shopoffices and a 4-storey shopoffice spread over three acres. The apartments have built-ups of a minimum 852 sq ft and were priced at RM286,000 onwards or on average RM370 psf at launch. Today, the average market price is between RM520 and RM560 psf. The shopoffices have built-ups of a minimum 4,800 sq ft and were sold for RM530 psf at launch.

“Tiara Mutiara 2 is part of a master plan project and we envision it to be self-sustaining,” Lee says. “We want it to be an urban hub that gives convenience to the residents.”

Tiara Mutiara 2, covering 2.89 acres of freehold land, has a gross development value (GDV) of RM300 million. It will feature two blocks of 28-storey serviced apartments and 25 shopoffices.

There will be 167 units in Tower A with built-ups of 800 to 1,110 sq ft and 200 units in Tower B with built-ups of 807 to 933 sq ft. All units come with three bedrooms, with 76 being dual-key units where one section of the unit is a studio apartment with a separate entrance. The selling price starts at RM448,000 and Tower B is already 80% sold after its soft launch in December last year.

The shopoffices have built-ups of 3,462 to 11,302 sq ft and are priced at RM2 million onwards. To date, 50% of them have been sold. Additionally, 30,000 sq ft has been set aside for a supermarket.

Lee says Tiara Mutiara 2 will have a façade similar to that of Tiara Mutiara, so both developments will complement each other. However, the finishes, quality and facilities of Tiara Mutiara 2 will be of a higher grade.

Left: An artist’s impression of Tiara Mutiara 2 at dusk. Top right: A linear streetscape will be created to “unify” Tiara Mutiara and Tiara Mutiara 2. Bottom right: An artist’s impression of one of the swimming pools

A unique aspect, which Lee points out, is that residents will have access to two swimming pools — one for families and casual swimming, and the other, a quieter lap pool.

The positive response to Tiara Mutiara 2’s residential and commercial components is a direct reflection of the growing demand for property in Puchong. According to Chen King Hoaw, managing director of property consultancy Landserve Sdn Bhd, demand for property in Puchong has increased steadily over the years and Tiara Mutiara 2 is a location where people don’t mind moving to.

“I think the main point is accessibility,” he says. “Being along that stretch of Jalan Puchong, close to the Jalan Klang Lama junction, access to KL and PJ is convenient. And if you head towards Puchong, there are shopping and educational facilities. There is IOI Mall and, after the toll, is Sunway Pyramid. Towards KL, Mid Valley Megamall is close by. Also, there are several public schools in the vicinity.

“The only downside is that Jalan Puchong is narrow and could have traffic concerns, but that should improve over time as the area is developed.”

On-going projects

Mutiara Johan is currently developing several projects and one of them is in Bukit Tinggi called Villa Mutiara. Sitting on 23.3 acres of leasehold land, it will feature 128 Tudor-style bungalows and has a GDV of RM170 million.

There is also a project in Gombak called Residensi Gombak 126 with an estimated GDV of RM80 million. There will be 167 units with built-ups starting from 558 sq ft.

The company is also developing a business centre in Cheras which has an estimated GDV of RM140 million.

With the next generation coming on board Mutiara Johan, expectations will be high to see what new developments will emerge in the coming years.


This article first appeared in The Edge Malaysia Weekly, on April 14, 2014.