Breaking new ground with The Atmosphere

Artist impression of an aerial view of phase 2E or Lava, of The Atmosphere in Seri Kembangan.

The Atmosphere sets a new benchmark for commercial developments in Seri Kembangan, Selangor with its unique hybrid “shopping mall” design for its 20.1-acre commercial centre, says Tempo Properties Sdn Bhd chief executive officer Khoo Boo Hian.

This commercial centre is the second phase of The Atmosphere, which aims to integrate leisure, retail and office elements in a central hub.

“They are shopoffices but the commercial centre looks and feels like a shopping mall. This hybrid design is unique in Malaysia,” says Khoo.

Khoo: ‘The biggest headache for a commercial development is the car park’.

Khoo points out that the unique design of the commercial centre has resulted in “two ground floors”, with an elevated and landscaped boulevard on the second storey.

“With four-storey shopoffice blocks, usually the top two stories don't carry a lot of value. But with our boulevard level, the third level also becomes a ground floor. People come up to the boulevard level using the escalator, and they can patronise the shops.”

Beneath the boulevard level are two levels of covered car park bays, and it was this design element that led to the creation of the “two ground floors” for the centre.

“The biggest headache for a commercial development is the car park. We were toying around with the idea of a dedicated car park block, which is very inconvenient for people. So we spoke to the architects and authorities. We said ... can we have a situation where we do away with the back lane? So, we covered the back lane. That was how the boulevard level was conceptualised.”

Khoo says this also means patrons of the centre benefit from the covered car park and the open courtyard design with space for events.

Highlights of The Atmosphere's commercial centre include a 1.4-acre public park, covered walkways, public toilets, sheltered boulevards, alfresco plazas, open lawns, an open courtyard design for events, and high ceilings for retail outlets, 22 to 28-feet wide shop frontage as well as the spacious 20 to 30 feet wide walkways.

There are 1,600 covered and open-air car park bays. Areas in the commercial centre are inter-linked via covered walkways, escalators and lifts.

“You can walk from one end to the other without getting wet,” says Khoo.

The Atmosphere's commercial centre, with a gross development value (GDV) of RM370mil, was launched in 2009.

Unit prices ranged from RM1mil to RM4.5mil, and the average selling price was RM300 per sq ft.

Khoo says the 136 units in the earlier launches were sold out, and the final launch (phase 2E or Lava) has a 70% take-up rate.

“Investors have benefited in terms of capital appreciation as the units that have been handed over were sold on the secondary market with almost 100% appreciation in price.”

Phase 2E, which will consist of 54 retail and office units, is expected to be completed by end-2013.

Khoo also points out that phase 2E has a “three ground floors” concept with raised courtyard plazas.

The project also won the category of Best Mixed Use Development in the Asia Pacific region (including 5 stars for Malaysia) in the 2011 Asia Pacific Property Awards 2011 (in association with Bloomberg Television).

It is also the first commercial development in the South Klang Valley to be Green Mark certified by Singapore's BCA (Building and Construction Authority).

Khoo says this will translate into lower water and energy bills and maintenance cost, as well as an enhanced work environment.

“To get the Green Mark certification, we have features like heat reflective polycarbonate roofing from Korea to cover the boulevards, water and electricity saving fixtures and fittings, and reflective glass for the shop offices. Together with disabled-friendly features such as wheelchair ramps and tactile tiles, we spent an extra RM1.5mil. But we felt that it was necessary to enhance this development rather than just building another high-density commercial area.”

Khoo says the commercial centre is a strata-title development, “so investors pay some management fees but they get 24-hour security and tip-top maintenance.”

The Atmosphere has three phases of development, with the first phase being a Giant hypermarket on a nine-acre site.

“The Giant Hypermarket chain bought the land in 2008 for about RM30mil. The hypermarket opened two years ago,” says Khoo.

Another 6.1ha remains to be developed as the third phase on the 53-acre site of The Atmosphere, and Khoo says various options are being planned.

“We are looking at close to a GDV of RM1bil eventually for the 53-acre site,” says Khoo.

Khoo also points out that The Atmosphere is strategically located near to areas such as Prima Tropika, Alam Santuary, 16 Sierra, D'Alpinia, Taman Putra Permai and Taman Equine.

“We are in the heart of the Golden Triangle of South Klang Valley with Puchong, Putrajaya and Seri Kembangan forming the axis.” He says Seri Kembangan is a rapidly growing property hotspot, with high demand for commercial zones.

Khoo cites a Spectrum Research Asia report that last year said the residential population of Seri Kembangan within a 20-minute drive time zone was 1.6 million people.

The project is developed by The Atmosphere Sdn Bhd, a joint venture company that is 60% owned by Eksons Corp Bhd, with the remainder owned by Tempo Properties.

Eksons Corp, which is listed on the Main Market of Bursa Malaysia, is one of the largest manufacturers of tropical thin plywood in the Asia Pacific region.

Tempo Properties provides project management support and expertise.

Being different

Khoo says Tempo Properties is a boutique property developer that aims to create a win-win situation for investors, business owners and patrons in commercial developments such as The Atmosphere.

“We aim to provide investors with something that they don't know they want. We think differently.”

He points out that prices for units at The Atmosphere was the highest for commercial developments in the area.

“Our intention was to set ourselves apart, and come up with something that is unique.”

Tempo Properties has its roots in Yoon Hin Sdn Bhd which is a rice wholesaler in Seremban, Negeri Sembilan.

Yoon Hin diversified into property development by setting up Tempo Properties in 1995, and its first project was developing the 48-acre Taman Cenggal Utama near the Seremban International Golf Club in 1997.

Taman Cenggal Utama consisted of 492 units of residential houses and shoplots, and 179 units of low-cost flats.

It was completed at end-2003, and generated sales of RM65mil.

Meanwhile, in the heart of Seremban town, Tempo Properties recently completed the Medan Suria commercial development which consists of 34 units of three and four storey shop offices that generated RM27.5mil in sales revenue.

“With Medan Suria, we became the first developer in Seremban that does not have a back lane for our shops.”

“It took a lot of convincing to get approval from the authorities. Usually, shops have a back lane for rubbish collection. Our reasoning was - in shopping centres, you have food and beverage outlets without any issue. So, why do you need to have a back lane for shops? The project was well taken up, and the authorities were happy with the design.”

It should also be noted that The Atmosphere is adjacent to the 60-acre Taman Prima Tropika residential development, which was Tempo Properties' first foray in Selangor.

Khoo says 470 units of double-storey terrace houses and two-and-a-half storey terrace houses with a GDV of RM180mil have been built in Taman Prima Tropika.

These were launched from 2004 onwards at prices ranging from RM229,000 to RM379,000.

There are 4 ha left for development in Taman Prima Tropika.

Khoo says Eksons Corp and Tempo Properties have another joint venture company, namely Oval Rock Sdn Bhd for property acquisition and development.

Oval Rock is also 60% owned by Eksons Corp, with the balance held by Tempo Properties.

In January this year, Eksons Corp told Bursa Malaysia that Oval Rock had entered into an agreement with Azam Hartamas Sdn Bhd to acquire 22.7ha of leasehold land at Jalan Gombak, Setapak in Selangor for RM17.1mil.

“We might start a mixed development in Gombak in the third quarter of next year. We are also in discussions with a land owner in Cheras for eight acres,” says Khoo.

By The Star

Tempo Prop sees more bookings

PETALING JAYA: Tempo Properties Sdn Bhd expects another 30% of the second phase of its The Atmosphere commercial development in Seri Kembangan to be taken up by this weekend.

The 20-acre phase comprises five components and encompasses shop offices, designer small office/home office (SOHO) suites, boulevard shops and retail outlets.

»We are optimistic that our pricing strategy, the project design and the incentives we are providing will appeal to buyers« KHOO BOO HIAN

Chief executive officer Khoo Boo Hian said type A, comprising 30 units of three- and four-storey shops, was already sold out following a series of previews. It will be launching 106 more units under types B, C and D tomorrow.

“We are optimistic that our pricing strategy, the project design and the incentives we are providing will appeal to buyers,” he told StarBiz in a telephone interview yesterday.

The second phase was targeted at investors and business people, he said, adding that the units were priced from RM860,000.

“We will be covering the (loan) interest during construction. We will also be providing a 6% rental guarantee for the third and fourth floors for a year for type-D units. This is so that the owners can take their time to look for tenants.”

Types B to D comprise four- and five-storey units.

Khoo also said The Atmosphere was being developed in a “fast growing area”.

“The area is fairly developed. There is already a Jusco (supermarket cum department store) there, with Giant and Tesco (hypermarkets) also coming up. The Atmosphere is being developed in what we like to call the heart of the golden triangle of southern Klang Valley.

“We see great potential for growth,” he said.

The commercial development is accessible via major highways such as Lebuhraya Damansara-Puchong Expressway, South Klang Valley Expressway, Maju Expressway and the North-South Highway.

The Atmosphere, with a gross development value (GDV) of about RM900mil and comprising three phases, is located on over 40 acres that are being jointly developed by Tempo Properties and main market-listed Eksons Corp Bhd.

Khoo said the first phase was sold for RM23mil for the development of the Giant hypermarket.

Phase 2 has a GDV of RM300mil. The third phase, with a GDV of up to RM600mil, is expected to be launched within two years, said Khoo.

“Development of The Atmosphere is expected to be completed by early 2014,” he said.

By The Star (by Eugene Mahalingam)

Clearwater focusing on green projects

The Clearwater Group aspires to turn its 240 acres in Seri Kembangan, Selangor, into an eco-friendly development under founding member and managing director Dian Lee Cheng Ling.

Known as Bluwater Estate, the leasehold gated and guarded development appears to be Dian’s most ambitious project to date.

Since her return from Australia where she studied communications, the eldest daughter of property developer Tan Sri Lee Kim Yew has been busy with several property projects.

Dian Lee

Clearwater Developments Sdn Bhd was set up by Dian and three partners in 2006 and their first project was serviced apartments, Clearwater Residences in Damansara Heights. Since then, she has added three brands to the group – Clearwater, Bluwater and The Heritage.

Clearly, the younger Lee would like to focus on eco-friendly projects. Yesterday, she flew off to New York’s Pratt Institute for a seven-week course on Sustainable Designs.

“It will cost quite a bit as Pratt is one of the premier design school in the United States for interior and architecture. I will also be taking my toddler son Jedi and his nanny with me,” says Lee.

She says motherhood has changed her and given her a new perspective on development.

“I’ve become more conscious of the environment we live in, the activities we can do to make this planet a better place for our future generations,” says Lee.

“I’m not the first to go on eco-friendly projects. There are other developers in town who have already done that but I would really like to go one step further.”

Lee has brought in Environmental Resources Management Ltd, a provider of environmental consulting services, to build Bluwater. She will be looking at four aspects – water, energy, landscape and waste management.

On the energy aspect, she says that at this preliminary stage, she would like all the 1,000-odd households to have solar heaters. She will also encourage the use of bicycles and buggies to go to the clubhouse instead of cars.

The properties there will be designed and built in such a way as to enable owners to collect rainwater for use. There are plans to keep the lake as clear and clean as possible for water sports.

The open-cast tin-mine lake will have lake-front bungalows. Right now, there are already two – her family’s weekend home and another which belongs to her father’s friend.

“We will spend RM2mil on trees and a lot more on landscaping to make this place as green as we can. We will also encourage better waste management, essentially the reuse, recycle and reduce concept with different bins for different types of waste. Our sewage system will not be linked to the lake.”

Lee says that after building several properties, she does not want to just build yet another project.

“I want to be passionate about it, to believe that this is the way to go.”

During a site visit, Lee says although there are some high tension cables running pass the main entrance, they do not cut across the housing estate.

The Bluwater Estate, formerly known as South Lake, used to belong to Mines Resort Bhd which was privately held by her father. She and her partners bought it at a “fair price” at a time when her father was scaling back his privately-held local property development activities.

She has also taken over a serviced apartment project fronting the lake, The Heritage, from her father.

Today, 600 of the 800 unit-project is tenanted. One of the blocks, comprising 200 units, will be sold en bloc.

“When the economy picks up, that will be sold. As it is, there is already a waiting list for those who want to rent units at The Heritage.

“With six universities and the Australian International School, which is located on Bluwater itself, we are confident there will be people who will want to invest in this area,” she says.

The studio units are already generating 8% to 10% yield for the owners (with rental of RM1,400 to RM1,500 a month), while the two- and three-room unit cost RM2,300 and RM2,500 to rent respectively, at a slightly lower yield.

The project is located across the highway from Mines Shopping Centre and fronts the lake in Bluwater Estate.

Bluwater is about 20km from the city and is served by the Besraya Highway, which is linked to several other highways.

However, The Heritage, although adjacent to Bluwater, will not be part of the gated and guarded development.

In the next couple of months, Lee aims to launch vacant bungalow land on Bluwater Estate at RM150 per sq ft.

These lots will be between 8,000 and 12,000 sq ft. Known as Bluhaven, there will be 18 lots initially.

The development will also have townhouses priced from RM850,000, semi-detached residential units and condominiums. These will be launched later.

By The Star (by Thean Lee Cheng)