18 property FocusM | June 15-21, 2019 ‘Rejuvenation’ for Subang Parade

• A new supermarket shopping malls have to undergo to be the latest the same with the added need to do so to complement the retail anchor tenant shops’ periodic refurbishment and updating,” says Teo, who • Hektar REIT sees believes that the enhancements will eventually lead to increased improvements with valuation of the properties. new tenants, and a “If the refurbishment or focus on a more reconstruction results in better comfortable shopper traffic and better busi- ness for the tenants, it will shopping experience translate to rental increment and subsequently, the value of the property (in later part),” pointing out that the main objective of such a strategic move is to improve the footfall by and business of the retailers Sherilyn Pang before other benefits follow suit. On his outlook for the retail new anchor tenant in sector, he says: “We are cau- the form of a super- tiously optimistic that the (prop- market is the high- erty) industry will grow, based light of popular on the forecast growth of the neighbourhood mall retailers at 4.5% this year.” SubangA Parade’s ongoing exten- sive ‘rejuvenation cycle.’ No rush Since opening its doors in Subang Parade remains as one 1988 and once known as the Subang Parade last had a refurbishment 12 years ago of Hektar REIT’s core assets, ‘longest shopping centre in contributing 32% of gross reve- ,’ Subang Parade nue to the company’s portfolio. is still the main landmark for its traffic dropped 21% due to the male, in line with expecta- The mall remains as Subang many Klang Valley residents enhancement and improvement tions. Jaya’s dominant shopping centre who make their way to Subang process, but Hisham says this is • 53% of the respondents were rooted at an iconic location. Jaya. to be expected and is confident married, living in a household “Our tenants are made up of Just 25 minutes from Kuala the footfall will rebound once it with 4.2 persons. international and national Lumpur at the intersection of is done. • The average household income chains, local brands and a ’s main commercial As of the first quarter this was RM11,390. number of entrepreneurs who area, Subang Parade’s vicinity year, Subang Parade recorded • Average dwell time was 1.46 we are happy to have on board,” boasts excellent public transpor- 85.5% occupancy rate, but he is hours and the average visit Hisham says. tation links and highway traffic confident it will soon pick up per month was 4.8 times. “In the next few months, flow. again. • Average spending per person visitors will be able to see new It is at the hub of a hive of “It is lower than before, but was RM150.25. brands with more visually activity - LRT and KTM stations, that’s because of our ongoing • Biggest occupation groups appealing looks in Subang the Ramsay Sime Darby Health asset enhancement operations. were professionals (19.7%) and Parade. Care centre, Grand Dorsett We have deliberately let go of a students (19.7%), followed by “This will provide a more Hotel, office buildings, residen- few tenants to revamp the mall. housewives (12%) varied and comfortable shop- tial neighbourhoods, an indus- Hisham: We are taking a bit more “But it should bounce back to “Our overall analysis, com- ping experience,” says Hisham. trial area, tertiary education time and are being more selective more than 90% which is where it bined with our tenant feedback, San Francisco Coffee, Halal institutions and shophouses. in creating the right tenant mix should be and has been for many shows that Subang Parade is well Vietnamese restaurant Super Even though Empire years, as soon as we are finished patronised by professionals due Saigon Pho Café and The Tarik Shopping Gallery behind it pro- doing what we are supposed to to its proximity to the commer- Place will soon take up space to vides healthy competition, redecoration or (improving) the do. So, it should be much cial office area, students from the complement existing new ten- Subang Parade is still ‘home’ to food court, toilets, facilities or healthier than 85.5% very soon,” various colleges in the vicinity ants such as Novacell, Liang locals and neighbouring resi- car park. Hisham says. and housewives living in Subang Sandwich Bar, Old Town White dents who have matured along “And then, of course, tenancy “We foresee this as just a Jaya,” Hisham notes. Coffee, Dodo Dim Sum & Bowls, with the mall, transitioning mix means having better, more temporary effect. Revamping is a In terms of employment, Penyet Express and Daiso. through various stages of its life attractive and more varied ten- much-needed exercise for Hektar REIT has created about Despite the growing excite- cycle for over 30 years. ants, comprising several fea- Subang Parade despite its high 5,000 jobs across its six proper- ment, Hektar REIT is not rush- Subang Parade’s last major tures: F&B (food and beverage) occupancy in the last 10 years,” ties which make up two million ing the refurbishment exercise. refurbishment was 12 years ago, outlets, fashion and entertain- he adds. sq ft of retail space in , “Our team won’t rush the aside from the introduction of ment, and bringing in the Melaka, and : job, though. We will plan care- an MBO cineplex in 2011. movies (theatres),” says Hisham. Consumer analysis • Subang Parade. fully. Our current timeline is to According to its owner, Hektar According to Hektar’s 2018 Hektar REIT specifically focuses • in Melaka. take the whole of 2019 to com- Real Estate Investment Trust annual report, Subang Parade’s on neighborhood and commu- • Wetex Parade in Muar. plete the asset enhancement (Hektar REIT), the refurbishing occupancy dipped to 88% while nity malls in growing towns. To • Central Square in Sungai work. We decided to take a bit is therefore overdue. select the right tenants for the Petani. more time and be more selective This time, the work involves locals it serves, Hektar places a • Kulim Central in Kulim. in creating the right tenant mix,” asset enhancement via the lot of effort in understanding its • Segamat Central. Hisham notes. improvement of its tenant mix customers. Hektar REIT also employs To Hektar REIT, finding the as well as replacing some of the In this regard, it conducted a more than 300 employees, who right mix is part science and older tenants with fresher number of market research contribute towards ensuring the part art. Moreover, it believes entrants. including exit surveys, house- relevance of the shopping malls that staying flexible is vital in “Retail goes through a cycle hold surveys and focus groups. to its diverse community. addressing the complex behav- because consumer trends are Based on the research it was iour of consumers and the ever- constantly changing, so shop- found that for Subang Parade: Value appreciation changing shopping trends. ping malls must adapt accord- • The annual traffic in 2018 was According to the president of the “The main news to watch out ingly,” says Hektar REIT CEO 7.8 million, with a monthly Shopping Malls for is our (new) supermarket and executive director Datuk average of 650,000. Association (PPKM), Tan Sri Teo anchor,” Hisham emphasises. Hisham Othman. • Shoppers’ median age is 34, Chiang Kok, it is a good move for “Subang Parade is close to “So, what we mean by ‘reju- with the biggest group, 39.8%, shopping malls to enhance value securing a new, upscale grocery venation’ is to refresh the look of comprising those aged 15-29. via refurbishment exercises. chain which will act as a catalyst the mall on the exterior and • Ethnicity: 51% Malay, 38% “All buildings need to be for our rejuvenation efforts for interior as well as refresh the Chinese, in line with the constantly maintained and re- the whole mall. Hopefully, we tenant mix. Property value corresponds with area’s demographics furbished to maintain and can announce the deal within “It can also mean renovation, improved footfall, says Teo • Gender: 58% were female, 42% enhance their value. Similarly, the next quarter,” he adds. FocusM