BY MAK KUM SHI
Chang (left) and Teo.
THE creation of homes with conducive living environments within a capital city can be quite challenging.
However, in the case of established Singapore-based real estate developers Roxy-Pacific Holdings Limited and Macly Group, development of comfortable quality homes within a land-scarce city state has become a norm, an expertise they are extending to their maiden development, Infinitum, within Kuala Lumpur’s city centre, under their joint-venture Macly Equity Sdn Bhd.
As an established property and hospitality group with an Asia-Pacific focus, Roxy-Pacific Holdings Limited has established itself since May 1967 into a trusted, homegrown specialty property and hospitality group, principally engaged in the development and sale of residential properties.
In addition to owning the Grand Mercure Roxy Hotel, Roxy Square Shopping Centre and other investment properties, it has grown its portfolio to include both residential and commercial developments.
Roxy-Pacific Holdings Limited executive chairman Teo Hong Lim said the company has been around since the late 1950s.
“In fact, I am a second-generation developer. We were highlighted as one of the pioneer companies that are still around in Singapore recently, in last year’s Singapore SG50.
“The company has been public about seven to eight years ago, so now, the market capitalisation is about SG$500mil. For 2015, our turnover was about SG$450mil. Profit was about SG$100mil. So we are classified as a mid-sized developer in Singapore.”
An artist's impression of Infinitum, a joint development by Singapore-based real estate developers Roxy-Pacific Holdings Limited and Macly Group.
As a real estate development company based in Singapore, Macly Group has a good development track record of SG$583mil for the past three years developing landed properties, apartments, condominiums, mixed developments, commercial and cluster housing projects.
From 2004 to 2011, the group had developed and launched 20 developments with a total of more than 1,000 residential and commercial units in Singapore.
Teo said all these years of developing hotels, residences and offices, they have worked quite well with Macly.
“We have been friends for many years, and felt that we had similarities in terms of development sense, doing the right products and analysing the market.
“Herman (Chang) himself was a pioneer of various designs in Singapore. He is very innovative in products. We had a bit of similarity in terms of development sense, doing the right products and analysing the market. What was really highlighted in the press was that he was the founder or inventor of compact units in Singapore.
“Of course, you need good design. With good design, you compact the size of your units, you have no wasted space. When prices go up on a per-square-foot basis, you are still making the product affordable.
“Infinitum is probably one of the products where we harness our skillsets in optimising the space and created the product of a very compact dual-key that is usable and accepted by the market.”
Macly Group managing director Herman Chang added that the development started because of the revitalisation of Quill City Mall, which had stalled for several years.
With a monorail station adjacent to the mall, going to Lot 10 or KLCC is convenient. Therefore, the mall’s macro location is great.
“In fact, (Jalan) Sultan Ismail is probably the nicest stretch of the streets in Kuala Lumpur City.
"At the same time, I think there is a niche for certain compact dual-key (developments) and being next to a major shopping centre, this compact dual-key has a certain standing,” said Chang.
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Citing the launch of Tower A under the branding Colony last October, the development had garnered sales of about 70% of the total.
“The Luxe has a slightly higher positioning. We are very mindful that this higher positioning would not turn into a luxurious position that the market cannot accept,” Chang added.
He added: “We have observed there are some dual-key units in the existing market, but some of them are about 1,200sq ft. Our compact units are 600sq ft (but are) still dual-key. As mentioned by Teo, we are very used to constrained spaces, and I am basically the pioneer of compact building in Singapore.
“In fact, we look at all the possible space utilisation, including shifting the wall by 10cm, to create a very optimum space and usable space for the buyer, such that after they buy it, it is value for money. It is a value proposition.
“Being a compact dual-key offers you the possibility of multiple tenants and usage, and that in turn will push up the yield of the property.
“We are here to establish our branding. We have completed the construction of the basement, which has four levels. We have also awarded the contract for the two towers together.
“So irrespective of whether we can or cannot sell, we are committed to completing the project and we have reserved the money for it.”
Teo concluded, “We have realised that as a new developer in Kuala Lumpur, confidence is very important. We are here for the long term. We also felt, by the time we came to Kuala Lumpur, a lot of Malaysian buyers are quite discerning.
“If they don’t have confidence in the developer, even if you have the right location, the same product, it is either you can’t sell it, or you should sell it lower than your competitors. I think building confidence is very important.”
