Bringing Bangsar to PJ

LOW profile OSK Property Holdings Bhd’s most prominent project is the rejuvenation of Atria mall in Damansara Jaya, Petaling Jaya.

It used to be “the mall to go to” in the 1980s. In March 2007, the group bought the property from property group Lien Hoe Corp Bhd for a cash consideration of RM75mil.

When it launched the 392 units of small office flexible office (SoFo) suites, it was among the most highly-priced high-rise property in that area.

“We launched the SoFo suites in November 2011. It was sold within seven hours,” executive director Ong Ju Xing says of the record-making launch. Sales of the SoFo suites hit RM1,100 per sq ft (psf), the highest on a psf basis.

At the bottom of the twin SoFo towers is a five and a half-storey shopping gallery with a net lettable area of 470,000 sq ft, comprising 250 shops, which will be OSK Property’s source of recurring income.

Announcements to Bursa indicate that OSK Property has acquired two companies Atria Shopping Gallery Sdn Bhd and Atria Parking Management Sdn Bhd to operate the mall which is targeted to open in the third quarter of next year.

“We’ve got strong tenants coming in whom we are unable to disclose at this point. This mall will cater to an untapped market,” says Ong, the younger son of Tan SriOng Leong Huat.

OSK Property’s plan is to position the place as a high-end neighbourhood mall similar to Bangsar Shopping Centre and the Gardens Mall which PJ does not have currently.

“Damansara Jaya is one of most affluent residential areas in PJ but Atria lost its lustre as it did not keep up with the times,” Ong says, “Also, new malls came up in the area.”

Ong says the group sees a huge potential in Damansara Jaya as it is a proven site for a neighbourhood mall.

“The population (there) is looking for more high-end and customised products and services.”

The statuesque young man adds: “We would be able to carve out a niche for ourselves in that area.”

Purchasers comprise the older generation who have lived there for decades and new families who have moved into the neighbourhood.

Ong has also noted the substantial hike in property prices in Damansara Jaya.

“Back in 2007, shoplots were transacted at about RM1mil a unit. Now, the same intermediate shoplot is transacting for over RM4mil,” he says.

With the project nearing completion, Ong is hopeful of creating another Bangsar Baru.

“After Bangsar Village I and II came up, a lot of shoplots in the Telawi area underwent a transformation. New retail concepts came in attracting very different sets of clientele,” he says.

On why the group maintains its modest public profile, the media-shy Ong says: “The market is very intelligent. Even when we are low profile, the serious investor or buyer will know about our projects.”

OSK Property does not believe in land-banking either. It attributes that strategy to the umbrella group OSK Holdings Bhd and its conservative approach of allocating resources in nine industries. “We buy land when the area is ready for development.”

“The group’s philosophy is to run a sound company, not risk the business at the expense of growth,” Ong says.

The group’s portfolio includes a mixed development in Shah Alam called Emira and SoFo suites in the business district of Sri Damansara called Opus Suites.

The company will launch Emira’s boutique retail shops and serviced apartments towards the end of this year and in the first quarter of 2014, respectively.

The group did not reveal any plans on Opus Suites, however, other than it would be launched next year.

OSK Property’s other ongoing project includes mixed development Pangaea in Cyberjaya. Phase 3, comprising two condominium blocks called Eclipse Residence, was launched recently.

Phase 4 and 5 comprise a boutique hotel and office, shopping gallery and a street mall. The shopping mall will have 300,000 sq ft of net lettable area.

It has also launched Vale II, a modern-concept low density townhouse development in its nature-inspired township Sutera Damansara. Ong says this is the last parcel of landed property within the township and is by far the best location as it sits on a hilltop.

It is close to 70% sold. Vale I will be completed by the end of next year and Vale II, a year later.

Recently, the group has also gone into industrial property development. These are mainly large scale factories, warehouses and showrooms in Section 22, Shah Alam. The project is called Gravitas.

The group is also planing to build the largest mall in Sg Petani, Kedah within its sprawling 2,582-acre township development named Bandar Puteri Jaya.

OSK Property’s total gross development value is about RM9bil with Pangaea taking up the largest slice at RM3.5bil, Bandar Puteri Jaya at RM2bil followed by Atria at RM1bil. - The Star