SOUTH CHINA MORNING POST WEDNESDAY, NOVEMBER 27, 2019 P3

Sponsored Feature set to become region’s top destination for property investors GBG: Trust and transformation are key to winning foreign investors

Malaysian real estate is courting a growing number of for- assets, including three parcels of land in the state of . eign investors, especially those from Hong Kong and China. This raised net cash proceeds of about RM58 million (US$14 While those keen to buy properties in Southeast Asia have con- million), of which RM25.6 million was received by the end of ventionally focused on Singapore, they are now increasingly drawn by the attractive opportunities available in neighbouring Meanwhile, the company remained steadfast on its ongoing countries like Malaysia – where modern urban infrastructure joint-venture projects on two parcels of land. One of them is and luxurious living can be enjoyed at a relatively lower cost. The Peak in Bahru, Johor. The other is the One Jesselton For example, houses in , the capital city of Waterfront mixed development in , , which Malaysia, are among the cheapest compared to 34 other cities - worldwide, according to the Global Living report by real estate tential to contribute a sizeable chunk of recurring income from the mall and hotel operations in the future. in Kuala Lumpur is US$119,738. In comparison, the average A revamp of the contract procurement strategy also bulked property prices in Hong Kong and Singapore are ranked as up GBG’s construction order book considerably. Before 2016, the priciest – at US$1.2 million and US$874,372 respectively. the group recorded a total of RM350 million (US$83 million) As the Malaysian real estate market anticipates more for- business wins over three years. Now, under Azizan’s leader- (above pictures) The Peak, a eign investment. Gabungan AQRS (GBG) is poised to satiate ship, the order book stands at RM2.8 billion (US$668 million) premium low-density development the booming demand for high quality and competitively-priced in 2018. GBG also secured the RM1.3-billion (US$310 million) “Advancing with a strong of two 39-storey interconnected residential properties. project from Prasarana Malaysia Berhad to construct and towers spread over 5.5 acres. The homegrown construction and property development complete part of the LRT3. (below picture) The Peak low- player has been listed on the Main Board of Bursa Malaysia From a high 22.8 per cent overhead cost as a percentage tested formula has density homes are a celebration of Securities since 2012. The listing cemented GBG’s strong of revenue in 2015, the transformation process managed to contemporary design and space. - reduce the operation cost to a healthier 8.9 per cent last year. positioned our group’s ticipate more actively in capacity building for the country, and Technology and innovation have been key in boosting produc- to grow and expand its property development business. tivity and management processes, as well as implementing performance staying GBG built a strong foundation in its core business of con- stringent cost controls throughout the restructuring period. struction, completing and undertaking noteworthy and large- Azizan strongly beliefs that the company’s success de- relevant by meeting scale infrastructure, including the Klang Valley Mass Rapid pends on GBG’s human capital, and employee commitment Transit (MRT) Line 1, the new state administrative centre of to the transformation strategy. “Part of our transformation plan markets needs for local Pahang - Pusat Pentadbiran Sultan Ahmad Shah (PPSAS), was to build a GBG team that is committed, innovative, and has Sungai Besi – Ulu Kelang (SUKE) Highway, Light Rail Transit high integrity,” explains Azizan. “Everyone has got strengths Azizan Bin Jaafar, and international property 3 (LRT3), and so on. and weaknesses, but most importantly, our team has the drive Having cemented its reputation in construction excel- to learn and grow as one”. Group CEO of Gabungan AQRS buyers”. lence, the company then expanded its portfolio to property Azizan believes the company is on track for a solid turn- Berhad (GBG) development and strategic investment. Besides undertaking around. This is evident from the growth in shareholdings of affordable-luxury developments, GBG also offers a plethora institutions such as pension and insurance funds from zero to dress and proximity to Singapore – seamless access to the next to the cruise terminal and of premium real estate in mature metropolises and emerging 47 per cent of total equity in April 2017 – a mere 12 months island state takes only about 30 minutes. Sabah’s international conven- economic hotspots in Johor, Kota Kinabalu, Kuala Lumpur and into the restructuring exercise. “The Peak is the only residential property in Johor Bahru tion centre,”. Selangor. “The main goal of the transformation is to build a trustwor- that the threshold for foreigners to purchase is RM500,000 Now open for registra- “On top of our current construction value of around RM2 thy organization that can deliver. In April 2016, when I took (US$119,000); most of the other properties have threshold tion, the luxury waterfront billion (US$477 million), which is still our core business, we over, we only had one per cent of institutional investors in the sitting above RM1 million. Situated 30 minutes away from Sin- condominium and serviced group. Today, the number has increased to more than 50 per gapore, the condominium is also a freehold development – this residence is part of GBG’s expected to bring in almost RM3 billion (US$715 million) worth cent, which shows that our restructuring has been successful is a great opportunity for foreign investors,” Azizan points out. The luxurious hilltop sanctuary has integrated the latest that will comprise of the One says Azizan Jaafar, group CEO of GBG. “We are a strong able to deliver the bottom line,” explains Azizan. security and lifestyle technologies to deliver peace-of-mind Jesselton Premier Lifestyle organisation known for delivering quality and value. This is the “That is the true value of our company, and the reason why DNA that we want to carry into our property division.” we have gained the trust and support of our stakeholders, for an uninterrupted view, is also designed as a corner unit. spaces and the Jesselton Point clients, subcontractors, and suppliers,” he says. Sky Villas, which are the larger units of The Peak, boast of Ferry Terminal. Transformation to build trust balconies that can be turned into sky gardens, with only two The thriving holiday scene Johor Bahru hilltop development satiates demand for at the Sabah capital is also Taking over the reins of GBG in April 2016, Azizan, who has luxurious real estate Alternatively, up and coming executives seeking more practi- a compelling reason to park over twenty-six years of experience in the construction and investment dollars at One Jesselton Waterfront – the Kota property industry, had barely warmed his cushy seat as the 2+1 bedroom Executive Suites, and 2+1 bedroom Panorama Kinabalu International Airport receives about 4 million tourist new chief when he sprang into action to spearhead a massive development arm. Four major projects carrying its brand of Suites. arrivals per year, making it the second busiest airport in the restructuring exercise. The transformation plan was timely to excellence are now on investors’ radar, namely The Peak in Slated for completion by the end of this year, The Peak is country after the Kuala Lumpur International Airport (KLIA). turnaround the business, which was facing mounting debt lev- Johor Bahru, Contours in Melawati Heights, Kuala Lumpur, strategically located along highways and public transportation For those preferring a roomy nest in the vibrant econom- routes to allow easy connection to Singapore. The low-density, ic hub of Kuala Lumpur, Contours in Melawati Heights is a operation costs. One Jesselton Waterfront, Kota Kinabalu. furnished homes are surrounded by amenities including Mid low-density development of 40 spacious villas with build-ups To tackle the piling debt, GBG monetised several non-core The Peak, especially, stands out with its prestigious ad- Valley Southkey Megamall and IKEA, world-class golf cours- ranging from 5,688 to 8,051 square feet. The gated and es, local and international schools, as well as top guarded premium neighbourhood overlooks a breathtaking medical facilities. quart ridge, and is equipped with clubhouse facilities including Residents of The Peak can also look forward swimming pool, playground, barbeque area, gymnasium and to a posh 1.85-acre private club of their own. The a multi-purpose hall. Within each unit, there is also private lift development offers 50 different amenities wrapped access, private pool and deck, and a large private garage that in prestige and exclusivity, including a stargazing deck, look out point, sky barbeque and dining area, Moving forward, GBG maintains its zeal for growth. The ambitious group is planning for expansions through the year aqua gym, yoga room, sauna, various gardens, 2020 in line with Malaysia’s commitment to improve the trans- aqua park for kids, and kids putt-putt golf. portation network, tourism infrastructure, and housing supply.

Other golden opportunities and lucrative to record positive growth in 2020 from all fronts, including its potentials Those in the market for idyllic living in the midst of One Jesselton Waterfront at Kota Kinabalu, Sabah. “The One Jesselton Waterfront is my dream de- velopment,” says Azizan smilingly, “It is part of the living experience in kota kinabalu cbd. waterfront mixed development that is located right gbg.com.my The value-driven real estate market has made Malaysia an attractive property investment destination Foreign buyers are in for a bargain as Malaysia slashes the minimum price threshold for property sales Why invest in Malaysian property? in Malaysia, their appetite driven by the tropical haven’s repu- quarter million Singaporeans cross the border to Johor every The weather, toggling between rain or shine, is temperate tation for vacation and retirement living. Chinese investments week, many of them enjoying cheaper retail therapy at the all year round. There is no need to look over one’s shoulder in Malaysia’s residential real estate are expected to double by mushrooming malls, or tasty bites at hawker stalls and gour- for major natural disasters like volcanoes, earthquakes and 2025, according to Juwai.com, a popular platform that markets met restaurants alike, or just to unwind – a testimony of Johor typhoons. The urban infrastructure of highways, public trans- properties worldwide to Chinese investors. Its data recorded Bahru’s livability and convenient connectivity. portation, airports and seaports are relatively modern and a 600 per cent growth in demand from Chinese buyers for The connectivity is expected to improve with the planned well-connected. The multicultural population is friendly to Malaysian real estate since 2017. Rapid Transit System (RTS) linking Bukit Chagar in Johor Bahru expatriates. Reuters also reported in August that interest in the Malaysia to Woodlands in Singapore. The healthcare services are ranked best in the world in My Second Home (MM2H) initiative has spiked among Hong In a South China Morning Post report in June, a spokesper- the 2019 International Living Annual Global Retirement Index, Kong residents. son for a property agency told a SCMP reporter that more than thanks to the English-speaking doctors, affordable medicine Open to all foreigners, MM2H is a government programme half of the 21 released units at a condominium project in Johor prescriptions and top-notch services. International education Bahru were sold within a weekend to buyers from Hong Kong. is ample in variety and quality. The business environment is Those aged below 50 years old have to show proof of liquid He further estimated that properties in Johor Bahru is about welcoming, ranking 15th among 190 economies worldwide in assets worth at least RM500,000 (US$119,000) and open a half the price of an average home in Bangkok and “about 20 the World Bank’s Doing Business 2019 Report. times cheaper” than prime locations in Singapore. These winning factors of Malaysia are increasingly entic- For those above 50, it is liquid assets worth RM350,000 and a The lower price of Johor Bahru homes – many of them ing Hong Kong’s property investors. Rattled by the heated anti-government protests raging in their own island, the Foreigners used to have a threshold of RM1 million in apartment development several years ago. However, Ma- well-heeled are shifting their sights to the high-yield nests in (US$239,000) to purchase urban high-rise properties. How- laysian authorities have halted approvals for construction of Southeast Asia instead. In Malaysia, especially, Hong Kong ever, this threshold will be reduced to RM600,000 next year, residential high-rise since the end of 2014, hence house prices citizens are reportedly snapping up newly-launched residential according to the Malaysian Budget 2020 announcement in are expected to remain stable. ABOUT THIS SECTION: units – an enthusiasm fueled by the country’s relatively stable October. This will likely open up more appetite for foreign For now, international bargain-hunters are taking advantage Produced by Shaping Asia Media. For full political climate, multilingual society easing integration and investment. of the ticking time to seize premium properties in the vibrant interviews with property leaders and more information about property investment communication, and spacious housing at a fraction of the cost The uptick in interest may bring even more attention on metropolis of Johor Bahru, where Singapore is a short distance opportunities in Malaysia, please visit: of Hong Kong’s typical shoebox condominiums. Johor Bahru, a city at the Southern tip of Peninsular Malaysia away and a dollar can stretch a long way. aseanbusinessleaders.com/malaysia-property

Astaka Holdings: Luxurious Johor Bahru development draws international interest Astaka Holdings Limited sets a recognised as the tallest residential in Southeast high bar for luxury property standards Asia in June 2018. It offers spacious units ranging from 2,207 in Johor Bahru – as high as 1,020 feet square feet to 2,659 square feet. “The units are large in size because we want to focus the height of its residential tower, The on a niche luxury market and set ourselves apart from our Zamani Bin Kasim, Astaka @ One Bukit Senyum, which competitors. Many people were surprised that we started so offers majestic views of the whole city- about what we want to deliver. I always believed that there Astaka Holdings LTD. Approximately 70 per cent of the units is a demand for such a product, and our results speak for have been swept up by buyers from 15 itself,” says Zamani. different countries, such as Singapore, He adds that The Astaka @ One Bukit Senyum is perfect “We deliver what Indonesia, China, Hong Kong, Japan, for any international investor keen on luxury freehold property Korea, Germany, Brunei and Finland. at an affordable price. While most of the units have been we promise, and The developer, listed on the Singa- sold, there are limited units still available, which totals up to our track record pore Stock Exchange, is a proud winner a combined estimated value of approximately RM400 million of prestigious awards in the region, (US$96 million). will speak for itself. including the Asia Pacific Property The Astaka @ One Bukit Senyum is situated in the special Awards, ASEAN Property Awards, and economic zone, Iskandar Malaysia. Only 1 kilometre away In the end of the Asia Property Awards. from the customs to Singapore, the twin residential towers day, we need to be overlook the Straits of Johor and are centrally located amidst But this property Goliath had a more shopping malls, golf resorts and hospitals. result-oriented”. David-like beginning. “We have to continue to add value and to upgrade our units. Therefore, we have partnered with a renowned prop- “Earlier, [our success today] was erty management company, Knight Frank, which is an expert unimaginable. When we started the company, it was only with three staff, in providing the best management services. From this, you but we positioned ourselves as professionals in the industry, and that’s how can tell that we are not just another condo but a branded we managed to get the trust of our investors,” says Zamani Bin Kasim, CEO residence in collaboration with prestigious brand,” Zamani of Astaka Holdings, who has 35 years of experience in the property devel- points out. opment industry. According to Zamani, Astaka Holdings’ history goes back The CEO adds that Astaka Holdings is now seeking 26 years, when it was established as Astaka Padu Sdn Bhd in 1993. Seeing strategic partners to co-develop the rest of the 7.65 acres it the potential of Johor Bahru, the founders secured prime land in the heart of has in One Bukit Senyum. He believes that the company’s results-oriented track record inspire trust among partners, stakeholders and customers. “The peaceful transition [during could be referred to as the ‘Smiling Hill’,” explains Zamani. the recent change in the Malaysian government] is giving a There are plenty to smile about the award-winning development, indeed. - When completed in 2022, One Bukit Senyum will be Johor Bahru’s new central among overseas investors and Astaka is well positioned internationally to capitalise on that.” The Astaka @ One Bukit Senyum residential high-rise, which has been com- pleted. The 65-storey and 70-storey luxury serviced apartment towers were www.astaka.com.my