#Exclusive* Balloting exercise for One South retail units

KUALA LUMPUR: Hua Yang Bhd's RM750 million One South mixed development in Sungai Besi, Kuala Lumpur is getting an "overwhelming" reaction from prospective buyers.

The property developer is seeing very good response for the initial phase of the project, prompting the firm to initiate a balloting exercise for its retail units. The company is also offering a slew of incentives to grow sales of its office units.

"The demand for the retail units since our registration exercise has been overwhelming. To date, we have eight serious prospects for every [one of the] 73 units available," said Hua Yang’s chief operating officer Ho Wen Yan in an e-mail interview with thedgeproperty.com.

The 73 retail units constitute a portion of One South's planned initial phase, which comprises a street mall with water fountain and landscape features.

The phase, with a gross development value (GDV) of RM200 million, will also include 384 office suites.

The retail entities will have indicative selling prices of between RM440,000 and RM1.5 million based on built-up areas of between 800 sq ft and 2,000 sq ft and indicative unit prices from RM550 psf to RM750 psf.

Ho said the balloting exercise was to ensure that the 73 retail units are sold to a good mix of investors, besides owners and operators.

"This is to ensure that Phase 1’s occupation is high upon vacant possession. The date of the balloting exercise would be announced soon.

"The street mall and office suites are targeted towards investors, nearby residents and tenants who wish to upgrade their work and lifestyle environment with a street mall concept," Ho said.

Take-up rates for the office units have also been encouraging as 20% or about 30 units of the 155 entities offered since February have been snapped up. Ho said Hua Yang would launch the commercial entities in the middle of the year.

These offices have built-ups of 479 sq ft to 2,100 sq ft, with prices starting from RM186,300. Each unit comes with a car park. Additional parking spaces are available for purchase.

"For interested buyers who book now, they can enjoy an early bird discount and low down payments. We will absorb bank interests during construction [i.e. no mortgage payments till vacant possession]," Ho said. Legal fees for sale & purchase agreements and loan agreements will be subsidised.

Meanwhile, Phase 2 of One South is already on the drawing board. The phase, which will include serviced apartments, is due for launch in the middle of 2011.

"Phase 2 would comprise two blocks of serviced apartments. Details are still in the planning stage," Ho said.

One South forms a major chunk of the over RM1 billion worth of real estate projects Hua Yang plans to roll out this year.