Introduction
In 2010 the property merger ball started rolling with UEM Land Holding’s conditional takeover of Sunrise Bhd which will create Malaysia’s largest property company with a market capitalization of nearly RM10 billion and a 12,000-acre landbank (source click UEM Sunrise Merging).
UEM is the largest landowner in Iskandar Development Region and Sunrise brand name was synonym with condo development particularly in Mont Kiara. The merge was to create synergy as both entities have culture, landbank, expertise strengths where the merger should create 1+1=3.
Fast forward today, the property market conundrum has caused most of the property developers lost major chunk of company value and UEM Sunrise was not spared.
UEM Sunrise’s maiden project in Mont Kiara, The Pines was completed in 1993. Since then, they have completed many more projects and for long term sustainability of the company before they running out of land in Mont Kiara, they have to source for new landbank which can sustain their company for next 15-20 years.
In 2018, UEM Sunrise has acquired 72.73 acres (29.14ha) of leasehold land near a lake garden in Kepong to undertake a mixed commercial development, with an estimated gross development value (GDV) of RM15 billion (Source Kiara Bay News). The land was acquired with purchase consideration of RM279.3millions.
UEM Sunrise intends to replica the success of Mont Kiara in this development and aptly name the whole development Kiara Bay.
Location and Accessibility
A bit overview of the land. MLM entered into privatization with the DBKL Datuk Bandar to be developed into mixed residential and commercial development. To unlock the potential of the land, MLM has approached UEM Sunrise for strategic partnership to develop the land. The structure of the proposal is as follows.
Overall Structure of the Proposal
SPA between MLM and Datuk Bandar for the acquisition of the said parcels for a purchase consideration of RM416.4millions where for consideration of 500.001 shares in MLM, UEM Sunrise shall pay the subscription with RM279.3millions.
Back to Kiara Bay, the said parcels located off from MRR2 approximately 13km North West of Kuala Lumpur City Centre. Via MRR2 => Jalan Kuching => Jalan Tun Razak, Kiara Bay is approximately 15km away from KLCC.
Kiara Bay to KLCC
The parcels are occupied by mostly longhouse residents who are progressively to the Project Perumahan Rakyat Seri Aman located adjacent to the said parcels. The 1030 units low medium cost PPR Seri Aman was built by MLM as part of the condition for the acquisition of the land.
Kiara Bay Location
Located off MRR2. There will two accesses via MRR2 new interchanges as well as linkage to Jalan Kepong.
Kiara Bay Interchange Location
From direction of Batu Caves and Kuala Lumpur, you may enter and exit Kiara Bay using Interchange 1 and 2. From direction of Damansara, you can exit Kiara Bay via both interchanges however for entrance, you only can use Interchange 1.
This is probably due to the lesser traffic expected from Damansara direction into Kiara Bay compared to Batu Caves and KL Direction. Also do note that Interchange 1 comes with traffic light and when the township has mature with more traffic, the traffic congestion will heavy traffic outbound from Kiara Bay to KL direction or from Damansara inbound to Kiara Bay.
The Interchange 1 and 2 from scale model
As part of the development order, the first interchange will be completed within 18 months from the first launch of the proposed development while the second interchange will be completed in 2027. This ensure post VP of first launch, the move in residents will have ready access to MRR2 via the interchange.
On top of existing access via Jalan Benteng Utara, there will additional access via new proposed road from Jalan Kepong to Kiara Bay which targeted to be completed in this year by DBKL. Via this new high link, residents can have access to Jinjang MRT Station which is easily 2km away.
It is definitely not a walking distance whether covered or not but the residents will able to access MRT SSP line which will bring them to KL Downtown.
Getting around from Kiara Bay
Kiara Bay will take easily 10-15 years before the massive township is coming to maturity cycle. Nevertheless thanks to new built link, access to amenities is 2km away. Medical Centre, Commercial shoplots, banks, school, shopping malls all are short driving distance within Kepong.
Amenities Around Kiara Bay
Masterplan
Kiara Bay is located at Jalan Benteng Utara, approximately 15km away from KLCC and 500mtr away from Kepong Metropolitan Park. Kiara Bay is massive development consists of mixed residential and commercial development. However there wouldn’t be any landed property available for sale.
With plot ratio of 1:6, the developer could develop up to 19millions sqft of sellable space with expectation of RM15billions GDV.
The lands come in two precincts, West and East precinct. The West precinct is named The Walk@ Kiara Bay and will have waterfront promenade, retail, mall, recreation, residential, office tower and hotel.
Inspired by Eco Living, Kiara Bay is built on an urban livability concept which boasts feature, amenities and facilities designed to serve the lifestyle needs of its residents and in same time encouraging social cohesion and human interaction.
There’s linear garden “The Greenway” and Urban farming “The Harvest” to promote the eco living.
Artist Impression of the Kiara Bay Masterplan
One of the main highlights is the majestic Kepong Metropolitan Park which is favorite spot for recreation. The frontage will be converted to promenade.
Kepong Metropolitan Park
Scale Model for The Walk@ Kiara Bay
The developer is promoting wellness, community and education hub at East precinct where it named the Village@ Kiara Bay.
Scale Model for The Village@ Kiara Bay
Check out the Kiara Bay video by click Kiara Bay.
Investment Opportunity
Kiara Bay is an ambitious project from reputable developer, UEM Sunrise. However no matter what’s the brand now, the fact is Malaysia Property Market is in conundrum and virtually in every segment, there are glut and property overhang from commercial shoplots, retails, offices and residential.
As investors, you need to perform more due diligence rather than simple micro view on the development itself. You need to be well-verse in Malaysia and World Economy and how it will impact us, government policy and taxation, the market past, present and future supply of property, current and future infrastructure, median price of property in the neighborhood, population demographic, amenities, current issues such as flood and many more.
In short, if you are making money during 2008/9-2012, it will take more than just a luck to make any money from property market. This is evidence as investors have been shying away from property investment for past few years and PROPCAFETM expects the trend to be remain the same for next few years unless some policies being revised.
There are several factors that work against Kiara Bay. First is the leasehold status of the land. For many of us, surrounded by abundant of freehold land, why settle for leasehold land? Furthermore by the time 15 years where the township is fully mature, the lease may left 80+ years for earlier phases.
The distance from KLCC is approximately 15km away from KLCC. While the distance is not the biggest concern, the traffic along MRR2 is notoriously for heavy particularly the stretch to Batu Caves roundabout. Once you exit the roundabout it will be almost bumper to bumper traffic towards KLCC. Without any viable direct connection to highway, this may deter many home buyers to consider Kiara Bay as option.
The queue from Jalan Kuching towards Batu Caves roundabout can be nightmare and with JL99 project just located at the corner of the Batu Caves roundabout, the traffic will only turn from bad to worse.
This comes to the third factor where being a brand new township, at the moment there is nothing much around Kiara Bay. The Developer needs to build the infrastructure, amenities, and employment opportunities from scratch. For employment prospect, Kepong and Sungai Buloh have few industrial parks however for high income employment, the residents need to travel to KL Downtown, Damansara and Petaling Jaya.
In short, there is not much of incentive for house buyers to be first mover. The access to public transport is quite far away, nearest which is MRT station which is more than 2km away.
Before PROPCAFETM forget, there is Double HTC between The Walk and The Village. Have you ever wonder how’s the HTC looks like? Check out the image from google map below.
Double HTC along MRR2 and next to PPA1M
Summary
Kiara Bay is one of the largest township within Klang Valley where the township is focused on mixed high rise residential and commercial. UEM Sunrise may soon exhaust their landbank in Mont Kiara very soon and for long term sustainability of the company, they need to find a new landbank for continue development.
Towards end of last year, UEM Sunrise has launched the first phase, Residensi AVA which consists of 870 units spread over 2 blocks of 41 storeys each. Read on for PROPCAFETM review part 2. Stay tune!
From,
PROPCAFETM Intern
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