City&Country: Riding on the WingTai Asia brand

WingTai Asia has to date completed about 70 projects offering mid-range to high-end properties in Singapore, Hong Kong and Malaysia. With economies showing signs of recovery from the impact of the global financial crisis, the group foresees a more exciting year ahead with several new launches lined up.

Originating from Hong Kong, the WingTai Asia group is made up of Wing Tai Holdings Ltd in Singapore, DNP Holdings Bhd in Malaysia and USI Holdings Ltd in Hong Kong. DNP Holdings Bhd is a subsidiary of Wing Tai Holdings.

Last year, the group's focus in Singapore was to sell existing stock. New developments were put on hold while it continued looking for land bank. "It was a deliberate move on our part, as we wanted to observe the market trend. This way, when land is made available to us, we can then pick the better pieces," deputy chairman of Singapore-listed Wing Tai Holdings and executive director of DNP Holdings, Edmund Cheng, tells City & Country.

On the property market outlook in Malaysia and Singapore, Cheng sees the economy continuing to improve and grow. "It will be better than last year, and more potential property buyers are expected. The general economy and the stock markets have been doing quite well," he says.
In Malaysia, DNP Holdings launched Tower B of Verticas Residensi, a RM700 million high-end condominium in Bukit Ceylon, Kuala Lumpur, on Jan 16. Tower A, previewed in July last year, is 70% sold, with the bulk of the buyers being locals. Verticas Residensi comprises three high-rise towers and a low-rise block (see box).

Cheng says other exciting projects in Malaysia and in Singapore can be expected this year. In Kuala Lumpur, its residential project in Jalan U-Thant, also known as Ambassador Row, is expected to be put on the market in 2H2010. Over in Penang, several projects are also expected to be unveiled this year.

DNP Land Sdn Bhd executive director Wong Weng Peng says DNP will continue to develop high-end properties in the Klang Valley. "We are aggressively looking for land bank in the Klang Valley. We currently have 200 acres of landbank in Kuala Lumpur and Penang," he adds.

One of the developer's ongoing projects in Penang is Sentral Greens in Relau. The 4.6-acre tract consists of 52 units of 3-storey terraced houses and a pair of semi-dees. Wong says the take-up so far is 65%.

A few phases within existing projects are expected to be officially launched in Penang this year, including phase 2 of BM Utama in Butterworth and phases four and five of Taman Seri Impian, comprising terraced houses and semi-dees. BM Utama, comprising 500 units of 2- and 3-storey terraced houses, semi-dees, bungalows and shops, are on a 56-acre freehold tract in Bukit Minyak. Taman Seri Impian, on the other hand, is a 45.5-acre freehold tract situated in Butterworth.

Aside from the upcoming low-rise apartments in Jalan U-Thant, another future project in Kuala Lumpur is a serviced residence development on what is known as the Menara DNP site. This project, comprises two blocks - one 49 storeys and the other, 43. Wong says its launch will depend on market conditions. According to past reports on Menara DNP, the freehold site spans 1.5 acres fronting Jalan Ampang in the heart of the capital.

DNP Holdings has completed high-end projects in the country, including mixed-development Sering Ukay in Hulu Kelang and The Meritz condo in downtown Kuala Lumpur. The developer also has projects in Penang and Johor Baru.

The Meritz, completed in 2008 and launched in 2007, has been fully sold. Buyers of the RM127 million project were mostly locals who paid about RM900 psf.

WingTai Asia also owns serviced residences, namely Lanson Place Kondominium at No 8 Ampang Hilir and Lanson Place Ambassador Row in Kuala Lumpur, operated under its hospitality brand Lanson Place. The brand, which has its head office in Hong Kong, also owns serviced residences in China and a hotel in Hong Kong.

WingTai Asia began as a garment manufacturer, expanding to Singapore in 1963 and Malaysia in 1969. The decision to change its core business to property development occurred in the late 1980s.

Today, Cheng says 90% of the group's activities are focused on property, with the rest on apparel. WingTai Asia also has franchise rights to lifestyle brands, such as Topshop and Topman, Adidas, G2000, Diva and Dorothy Perkins.

"We are a long-term property player. We diversified to property development because we anticipated that as a country grows, the demand for lifestyle products will increase. Demand for high-quality products will also increase," Cheng says. He believes the group's reputation and its emphasis on trust and good quality for all customers will augur well for its future.

The group stresses offering good quality and service to customers: "We always try to accommodate our customers' requirements. We believe demand and expectations always change and therefore strive to continuously improve our products.

"We have a good relationship or partnership with our customers. They know when they invest with us, the value of the property will hold. It is the same for our properties in Singapore and China. Our customers know that when we sell our property, it is not a one-off thing, as we will look after them. They know in construction, one can never get a perfect building and there are bound to be defects, but they can depend on us to fix it and matters are settled quickly," he explains.

Cheng cites the Belle Vue in Singapore's District 9 as perhaps one of the group's most "extreme" projects so far. "Each of the 176 units is different, with the focus on individuality. Our buyers are so happy about that. Of course, with each unit being different, it also meant a higher cost of construction," he offers. Hours were spent with customers to explain Belle Vue's concept, but that has paid off, as the project has been sold out. It is expected to be completed next year.

This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 789, Jan 18-24, 2010.