UOA Holdings Sdn Bhd’s urban renewal initiatives of the Kerinchi squatter colony into an integrated mixed development called Bangsar South has taken off well with about a third of the commercial precinct currently under construction and two residential blocks completed to-date.
The 60-acre development, located off the Federal Highway, kicked off in 2007 and will take around 10 years to complete.
UOA general manager David Khor says Bangsar South will comprise 34 office blocks, one retail block, and seven residential blocks.
This will translate into a total gross lettable space of 5 million sq ft of office space, 600,000 sq ft of retail space and more than 2,000 residential units for a total gross development value of RM2.5bil.
So far the company has sold RM253mil worth of boutique office towers of 10 to 11 storeys to corporate buyers who will have the naming rights for the property.
The residential properties were opened for sale since 2007 and so far 60% of the 470 units have been sold.
The retail space on the three storey The Sphere boutique mall is only available for lease.
So far, the company has sold eight office blocks worth a GDV of RM253mil and another six blocks have been completed. Two of the completed blocks have been rented out and another four blocks are available for en-bloc sale or rental.
The selling price for the office space is around RM700 psf while the asking rental rate is RM4.50 psf.
Khor says UOA has improved the infrastructure access between the residential and commercial precincts by widening the main road leading into the area into three lanes and upgraded the Putra LRT’s Universiti station. Pedestrian pavements and sheltered pavilions have also been built.
According to him, Bangsar South projects will continue to be the main growth driver for the company over the medium to long term.
“Going forward, the development in Bangsar South should remain the company’s focus as it will contribute positively to the company’s bottomline over the next seven to 10 years,” he adds.
The company also has other on-going niche development projects in Taman Desa, Segambut, Bangsar and Kepong just to name a few.
Its investment properties in both commercial and residential properties will continue to contribute stable investment income on an annual basis. “We anticipate both the commercial and residential components to be well balance in the future. Their contribution will largely depend on the demand and supply of properties in the coming years,” Khor says.