Bina Puri Holding Bhd’s 51 percent subsidiary, Sumbangan Lagenda Sdn Bhd, has revived an abandoned mixed project in USJ Subang, investing almost RM200 million over the last five years.
Dubbed Main Place@USJ 21, the project cost RM80 million to redevelop. It has a total sellable area of 880,000 sq ft and a gross development value of RM291 million.
While the 4.3-acre project was no mean feat, it offered a more fulfilling business strategy compared to the conventional build-from-the-ground projects, said Yam.
“We took this on because we saw money to be made,” he said.
Notably, the project’s four blocks of serviced apartments were already 90 percent sold when the company took over it.
Since the original concept for the project was a time-sharing hotel, the units also do not come with car park bays, leaving Sumbangan Lagenda with 1,500 car park bays from which they can earn rental.
The company will also keep the retail podium located below the serviced apartment for recurring income. Featuring 130 retail lots, the mall is 85 percent rented out when it opened in March and is expected to be fully occupied by September 2014.
“We are open to taking on other similar abandoned projects, using this experience as a stepping stone. The cashflow is better,” said Yam.
Currently, the developer is eyeing several mixed development or high-rise residential projects that have been abandoned in Penang and the Klang Valley.
He revealed that the company is not focusing on greenfield projects now since new land is generally more expensive and may be situated in less attractive areas.
Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
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