This article first appeared in City & Country, The Edge Malaysia Weekly on January 31, 2022 - February 6, 2022

Metropolitan Lake Development Sdn Bhd (MLD) is aiming to create a lifestyle and destination hub in Kepong, one of the oldest areas in Kuala Lumpur with a history of tin mining that started in the 1860s.

Called Metropolitan Waterfront, it has a gross development value of RM750 million, sits on 14.6 acres beside the 250-acre Kepong Metropolitan Park and is a stone’s throw from the 140-acre Kepong Metropolitan Lake. The land is divided into four parcels — Parcel A is a retail section called Keponggi Square, Parcel B will have an affordable housing block, Parcel C is for a yet-to-be-named two-tower serviced apartment development and Parcel D will be a community centre.

MLD launched Keponggi Square in 3Q2021. The serviced apartments and other projects will be unveiled at a later date.

The company was formed in 2016 when two of its shareholders, Datuk Seri Utama Raja Nong Chik Raja Zainal Abidin and Datuk Seri Michael Yam, decided to come together to develop this piece of land, owned by the former.

“[Nong Chik] brought the land to Datuk Seri and having looked at the land, it was identified as a good tract to work with,” MLD general manager James Yam says, adding that the vibrancy of Kepong foretells its potential growth and development.

Along with MLD director Raja Hamzah Abidin, James shares how careful consideration has been given to what will be built on this prime tract. Other developers would probably have chosen to maximise the plot ratio and density to unlock the highest value of the land, but MLD has taken a different route.

“Normally, the first thing developers want to do is build a high-rise,” says James. MLD, though, decided to develop the commercial section first.

“We carved out about 6.8 acres to build 73 shoplots, which is now Keponggi Square. The idea is that this commercial hub will be the crowd-pulling destination, set the lifestyle, the vibrancy and later on, when we build the high-rises, they will benefit from this. It’s very similar to what Datuk Seri did in Plaza Mont’Kiara, in Publika and in Solaris Mont’Kiara. In fact, you always need a catalyst before the high-rise works,” he explains.

The RM220 million Keponggi Square will have 73 three-storey shoplots that come in three sizes — 22ft by 70ft (built-up: 4,400 sq ft), 34ft by 70ft (built-up: 6,200 sq ft) and 40ft by 70ft (built-up: 7,300 sq ft).

Selling prices range from RM2.88 million to RM4.28 million and the net lettable area is about 355,000 sq ft. Scheduled to be completed in 1Q2023, it is already 80% taken up and the units are individually titled.

The name, James says, is a play on Japan’s Roppongi Hills. “Besides the name being quite catchy, we know that Roppongi in Tokyo is a destination, which suits what we are trying to achieve here. These include placemaking activities where either morning or night, there is food and beverage and entertainment, among others, on offer. People go to Roppongi to be refreshed, to look at things and it’s not just entertainment; there is wellness and everything is holistically all-encompassing.”

Raja Hamzah reveals that the buyers are a mix of owner-occupiers and investors. “If you just get all investors, you will end up with an empty development that may not be filled.”

According to James, MLD will control and curate the tenants of three blocks that the MLD team have identified to manage. “These three blocks will be our signature blocks — two blocks will face the Piazza and the third will face the water.”

An open space that will be the focal point of the retail section, the Piazza will be where the team plans to hold various events.

“For the next five years, we want to conduct events like what Datuk Seri did in Plaza Mont’Kiara, with the Thursday night market and the Jazz Festival … So, we’re going to do the same thing with the ­Piazza,” says James, adding that the festivals could be Cantopop or K-pop themed.

Raja Hamzah adds that other ideas include the screening of English Premier League games or the next World Cup, and the closing of roads, making it pedestrian-only. Both agree that festive celebrations will also be held.

In terms of the tenants for the three blocks managed by MLD, James says they will curate the tenancy to ensure that they have the right brands coming in to cater for the targeted visitors. The brands or tenants will be revealed at a later date as they are still in various stages of discussion.

“We’ve set aside a budget to maintain the courtyard, do up the place. Also, we have set up a budget for marketing our events. I can’t promise infinite luck that we will forever be there but if we give it a good shot and if it is self-sustaining, it can become a business. And the MLD team as a leasing team can take it on. We’re calling it MLD management, and that is something that we are already laying the groundwork for,” says James.

The shoplots that MLD will be managing, have been or will be sold and the owners will sign a principal tenancy agreement that will allow MLD to manage the units. “The purchasers will sign [the tenancy agreement] upon signing the sales and purchase agreement. Then, we will go look for people because we also guarantee them ‘X’ amount from tenants,” he continues.

Overall, businesses targeted for the development include F&B outlets, which could take up 30% to 40% of the units, salons, wellness providers, banks, pharmacies, electrical appliance stores and optical outlets.

Raja Hamzah adds that the back lanes will also be taken care of with landscaping and pavements. “We are working with the city council to organise a separate dumping area. The tenants will be encouraged to put their rubbish neatly in the back lane and we will organise with the council to collect and dump it.”

Other features include naturally ventilated common areas, solar-powered lights for high-use areas such as road access and walkways, and additional landscaping that incorporates the Kepong Metropolitan Park.

Plans for the serviced apartment are still being finalised but James reveals that it will be something atypical of the current products in the market. “The first thing we decided was that it is not going to be your typical 800 to 1,200 sq ft product. I think that is what everyone is doing in the area. Our units will be bigger and targeted at ‘second home’ upgraders,” he says.

“The people who had bought one of the smaller units and lived in it for the last, maybe, five years may have had one child then and now they have a second one. A 1,200 sq ft unit is a bit too small so where are they going to move to next?”

Raja Hamzah says, “Our product will be slightly higher end, and we are going to push the envelope a bit in terms of pricing and product offering.” He adds that MLD will be using a local well-known architect, who has done a number of high-end projects.

Although the exact details are still being fine-tuned, James reveals that there will be two towers of about 30 to 32 storeys each. The total number of units will range from 500 to 550, with built-ups of 1,400 to 2,400 sq ft. There will be a minimum of three to four bedrooms and every unit will have a balcony. The indicative price is around RM700 psf.

The units will most likely come partially furnished with air-conditioning units and kitchen hood and hob but no built-in wardrobes, although the exact details are still being finalised. Facilities, apart from the standard ones, will include jogging-friendly paths, a collection area for packages and deliveries where the delivery person does not have to go through the guardhouse, and an e-hailing pick-up and drop-off area, James highlights.

Raja Hamzah emphasises that the units will not be for short-term stays but for owner-occupiers and longer-term rentals.

Additionally, the ground and first levels will have retail units with built-ups of about 20,000 sq ft that MLD will own and manage. “It is going to be connected to Keponggi Square so that from the Piazza, there will be a tunnel to the ground floor of the apartments and then to the lake area.”

Asked what were the factors that gave them confidence their product would sell well, they both point to the population of 300,000 in Kepong, which James estimates based on the number of residential property units in the vicinity and attributing four persons per household, with a median income of RM7,000 to RM8,000 a month. Moreover, the strong performance of other high-rise projects in Kepong has provided a basis that there will be demand for high-rise projects in the area.

Despite having their hands full with Metropolitan Waterfront, James reveals that the team are already keeping their eyes and ears peeled for good parcels of land in the Klang Valley and Greater Kuala Lumpur area. But for now, their focus is on developing a product that they believe many will flock to.

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