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Friday, October 26, 2007

Harbour Point set to rejuvenate Port Klang

By theSun

An artist's impression of Harbour Point's shopoffices


PORT KLANG is set to have its first shopping mall, hpmall@Harbour Point, in three years time. The 150,000 sq ft retail offering, spread over three levels and complemented by 3-storey shopoffices, will be built on a 3.3-acre leasehold site between the main thoroughfare of Persiaran Raja Muda Musa and Jalan Depoh.

The developer, Titijaya Group of Companies, is confident of Harbour Point’s success as it has roped in Giant as the anchor tenant. The hypermarket retailer
will be leasing 30,000 sq ft of space. This is Titijaya’s second mixed commercial offering after First Subang in Subang Jaya’s SS19, which has Jusco’s D’Hati supermarket as the anchor tenant.

Titijaya group director Charmaine Lim (pic) tells PropertyPlus (theSun) that Port Klang town, where Harbour Point is situated, has not experienced much change or seen new commercial offerings in the past few years. It has been an established area for more than 50 years and the only commercial offerings are mostly 2- and 3- storey shops. While there are some smaller, new commercial offerings comprising four to five units of shopoffices found nearby, there is hardly any big parcel of land left for development here, she adds.

Titijaya is confident that Harbour Point, which has a gross development value of RM50 million will enhance the overall commercial property values there.

The current landscape
Klang-based Imperial Properties principal Lee Nyi King tells PropertyPlus shopoffices in Port Klang are mainly concentrated in the town centre along the main road of Persiaran Raja Muda Musa, which stretches about five kilometres. Most, if not all are small clusters.

The pre-war 2-storey shophouses are easily over 80 years old and some are in quite bad shape, with secondary transactions few and far, says Lee. He cannot recall the last transaction made and says there have not been many enquiries either.
“Port Klang is very much a workers’ population and most businesses here comprise petty traders,” he adds.

Another Klang-based agent familiar with Port Klang concurs with Lee. According to her, the better-located shops are mostly occupied, particularly the 2-storey ones along Persiaran Raja Muda Musa. “However, not many shops in Port Klang town are for sale as many people buy them for their own use. Those being rented can fetch between RM4,000 and RM5,000 for ground floor units. Depending on the condition of the units, secondary values can range between RM450,000 and RM600,000,” she shares.

Away from the main road, the agent says that ground floor monthly rentals can only bring in between RM1,500 and RM2,500. With renovation, ground floor lots can be rented for up to RM3,500. These are 4-storey shops with a lot size of 22ft by 75ft and current prices range between RM550,000 and RM650,000, she adds.

Sale or lease
Having purchased the tract from the government two years ago, Titijaya’s Lim says Harbour Point’s location is one of the busier parts of Port Klang town. “There is an existing
commercial strip opposite our project comprising older 3-storey shopoffices as well as
other amenities nearby, such as the wet market, bus terminal and hospital.”

Titijaya will have a ground breaking ceremony tomorrow. The developer soft-launched the project four months ago and sales have reached 40%. Lim feels the response, especially for the mall, are an indication that buyers are confident with the project. “Our buyers who have bought lots in the mall are retailers who have branches in other shopping malls. This is a reflection of their confidence in our location,” she says.

An artist's impression of hpmall@Harbour Point with Giant as the anchor tenant

hpmall@Harbout Point has a net saleable space of 35,000 sq ft and a net lettable area of 60,000 sq ft. It has 80 covered parking bays on the ground level. There are 43 lots for sale with sizes ranging between 260 sq ft and 700 sq ft. Prices start from RM550 psf. Maintenance has been set at RM1 psf for owners and tenants. Titijaya will retain the top floor of the mall and some lots on both ground and first floor for recurring rental income. Rents start from RM3 psf.

Titijaya decided on the sale or lease approach for the mall, based on feedback from its purchasers. “Some retailers want to buy while others are only interested to lease,” shares Lim. To assure its success, the developer will be controlling the tenant mix.

According to Lim, Titijaya’s initial plans were to put up shopoffices only, but when Giant
expressed interest, the developer decided to include a mall in the development’s plans.

On the shopoffice units, there will be 21 enbloc units for sale, with prices starting from
RM800,000 for the 20 ft by 75 ft lots that have typical built-ups of about 4,365 sq ft. There are only 12 of these units left, says Lim. A bank and shipping company have bought two corner units, tagged between RM1.3 million and RM1.5 million. These are slightly larger at 28ft by 75ft and built-ups of 5,300 sq ft.

According to Lim, there are many shipping companies in Port Klang and most of their offices are
located in Port Klang town. “We are offering a new and modern choice for buyers and, based
on our market studies, there is demand here but they has been a lack of choice as well as limited
supply on the secondary market.”

Most of our buyers are locals who have been renting shops here as well as upgraders, she adds. The developer says a typical 3-storey shoplot opposite Harbour Point has a lot size of 22ft by 100ft and built-up of 6,000 sq ft. Enbloc monthly rentals can command around RM5,000, while the ground floor will fetch between RM2,500 and RM3,000 monthly.

The developer is projecting rental returns of 8%. Piling works have already commenced at the
Harbour Point shopoffices and completion will be in 2010.

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