PETALING JAYA (Sept 18): Ba Sheng Sdn Bhd will be launching its maiden project in Malaysia called Avara Seputeh at Old Klang Road, Kuala Lumpur this October.

Targeting small families and young executives, the 1.39-acre freehold serviced apartment project with an estimated gross development value (GDV) of RM320 million will have 366 units over two 35-storey towers, Ba Sheng managing director Alex Koh told EdgeProp.my.

“Built-ups will range from 667 sq ft to 1,216 sq ft while the tentative selling price will start from RM650,000,” he said, adding that the development will also have eight retail units on the ground floor, where Ba Sheng’s future corporate office will be housed upon completion.

“Old Klang Road is a location with a legacy. It is the only road that links KL all the way to Port Klang. It is also the oldest and first major road in the Klang Valley, built before the Federal Highway.

“This is a very strategic location, although it has been neglected due to lack of infrastructure before this. But now that we have many amenities in this area, I think it is high time for us to develop this piece of land,” noted Koh.

The boutique developer is already sourcing for more land parcels in KL.

“As a boutique developer, we would not like to have many projects on our hands at the same time. We want to emphasise more on quality in terms of safety and detailing of the product as well as on-time delivery,” he added.

Although Avara Seputeh is the developer’s first project in Malaysia, Koh is no stranger to property development. He is also the managing director of Khor Eng Hock & Sons group of companies, which was founded by Koh’s late father back in 1948. In 1988, Koh established Khor Eng Hock & Sons PNG Ltd (KEH PNG) to venture into Papua New Guinea (PNG) to develop executive housing there.

Its first project in PNG was an eight-unit executive townhouse project developed at a total construction cost of US$2.3 million (RM9.84 million).

“Everything was funded internally as financing is nearly impossible in PNG and, unlike in Malaysia, homebuyers in PNG will only buy or rent when the properties are completed. The homes were well received by expatriates because of their quality and the location was near to an international school.

“Another thing I observed about PNG property investors is that they value service. So we help property buyers manage their properties up to five years to generate a certain level of income yield and maintain the property value, creating a win-win situation for us and them,” said Koh.

Thus far, KEH PNG has completed projects worth a total GDV of about US$49 million in PNG. It still has about US$82 million worth of developments in the pipeline.

Referring to the name “Avara”, Koh explained that in Hiri Motu (one of PNG’s three official languages), “Avara” means “new dynasty” or “new era”.

“We would like to bring the Avara brand from PNG back to Malaysia to continue our success story in PNG,” he said.

Koh thinks the Malaysian property market will probably pick up by 2H2018 or 2019. Construction work for Avara Seputeh commenced last month and is slated for completion by July 2020.

This story first appeared in EdgeProp.my pullout on Sept 15, 2017. Download EdgeProp.my pullout here for free.