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Astaka Holdings Limited sets a high bar for luxury property standards in Johor Bahru – as high as 1,020 feet

the height of its residential tower, The Astaka @ One Bukit Senyum, which offers majestic views of the whole city-

Approximately 70 per cent of the units have been swept up by buyers from 15 different countries, such as Singapore, Indonesia, China, Hong Kong, Japan, Korea, Germany, Brunei and Finland.

The developer, listed on the Singa-pore Stock Exchange, is a proud winner of prestigious awards in the region, including the Asia Pacific Property Awards, ASEAN Property Awards, and Asia Property Awards.

But this property Goliath had a more David-like beginning.

“Earlier, [our success today] was unimaginable. When we started the company, it was only with three staff, but we positioned ourselves as professionals in the industry, and that’s how we managed to get the trust of our investors,” says Zamani Bin Kasim, CEO of Astaka Holdings, who has 35 years of experience in the property devel-opment industry. According to Zamani, Astaka Holdings’ history goes back 26 years, when it was established as Astaka Padu Sdn Bhd in 1993. Seeing the potential of Johor Bahru, the founders secured prime land in the heart of

could be referred to as the ‘Smiling Hill’,” explains Zamani. There are plenty to smile about the award-winning development, indeed.

When completed in 2022, One Bukit Senyum will be Johor Bahru’s new central

The Astaka @ One Bukit Senyum residential high-rise, which has been com-pleted. The 65-storey and 70-storey luxury serviced apartment towers were

next to the cruise terminal and Sabah’s international conven-tion centre,”.

Now open for registra-tion, the luxury waterfront condominium and serviced residence is part of GBG’s

that will comprise of the One Jesselton Premier Lifestyle

spaces and the Jesselton Point Ferry Terminal.

The thriving holiday scene at the Sabah capital is also a compelling reason to park investment dollars at One Jesselton Waterfront – the Kota Kinabalu International Airport receives about 4 million tourist arrivals per year, making it the second busiest airport in the country after the Kuala Lumpur International Airport (KLIA).

For those preferring a roomy nest in the vibrant econom-ic hub of Kuala Lumpur, Contours in Melawati Heights is a low-density development of 40 spacious villas with build-ups ranging from 5,688 to 8,051 square feet. The gated and guarded premium neighbourhood overlooks a breathtaking quart ridge, and is equipped with clubhouse facilities including swimming pool, playground, barbeque area, gymnasium and a multi-purpose hall. Within each unit, there is also private lift access, private pool and deck, and a large private garage that

Moving forward, GBG maintains its zeal for growth. The ambitious group is planning for expansions through the year 2020 in line with Malaysia’s commitment to improve the trans-portation network, tourism infrastructure, and housing supply.

to record positive growth in 2020 from all fronts, including its

recognised as the tallest residential skyscraper in Southeast Asia in June 2018. It offers spacious units ranging from 2,207 square feet to 2,659 square feet.

“The units are large in size because we want to focus on a niche luxury market and set ourselves apart from our competitors. Many people were surprised that we started so

about what we want to deliver. I always believed that there is a demand for such a product, and our results speak for itself,” says Zamani.

He adds that The Astaka @ One Bukit Senyum is perfect for any international investor keen on luxury freehold property at an affordable price. While most of the units have been sold, there are limited units still available, which totals up to a combined estimated value of approximately RM400 million (US$96 million).

The Astaka @ One Bukit Senyum is situated in the special economic zone, Iskandar Malaysia. Only 1 kilometre away from the customs to Singapore, the twin residential towers overlook the Straits of Johor and are centrally located amidst shopping malls, golf resorts and hospitals.

“We have to continue to add value and to upgrade our units. Therefore, we have partnered with a renowned prop-erty management company, Knight Frank, which is an expert in providing the best management services. From this, you can tell that we are not just another condo but a branded residence in collaboration with prestigious brand,” Zamani points out.

The CEO adds that Astaka Holdings is now seeking strategic partners to co-develop the rest of the 7.65 acres it has in One Bukit Senyum. He believes that the company’s results-oriented track record inspire trust among partners, stakeholders and customers. “The peaceful transition [during the recent change in the Malaysian government] is giving a

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among overseas investors and Astaka is well positioned internationally to capitalise on that.”

Astaka Holdings: Luxurious Johor Bahru development draws international interest

Zamani Bin Kasim,

Astaka Holdings LTD.

GBG: Trust and transformation are key to winning foreign investors

Malaysia set to become region’s top destination for property investors

Malaysian real estate is courting a growing number of for- .anihC dna gnoK gnoH morf esoht yllaicepse ,srotsevni ngie

While those keen to buy properties in Southeast Asia have con-ventionally focused on Singapore, they are now increasingly drawn by the attractive opportunities available in neighbouring countries like Malaysia – where modern urban infrastructure and luxurious living can be enjoyed at a relatively lower cost.

For example, houses in Kuala Lumpur, the capital city of Malaysia, are among the cheapest compared to 34 other cities worldwide, according to the Global Living report by real estate

in Kuala Lumpur is US$119,738. In comparison, the average property prices in Hong Kong and Singapore are ranked as the priciest – at US$1.2 million and US$874,372 respectively.

As the Malaysian real estate market anticipates more for-eign investment. Gabungan AQRS (GBG) is poised to satiate the booming demand for high quality and competitively-priced residential properties.

The homegrown construction and property development player has been listed on the Main Board of Bursa Malaysia Securities since 2012. The listing cemented GBG’s strong

-ticipate more actively in capacity building for the country, and to grow and expand its property development business.

GBG built a strong foundation in its core business of con-struction, completing and undertaking noteworthy and large-scale infrastructure, including the Klang Valley Mass Rapid Transit (MRT) Line 1, the new state administrative centre of Pahang - Pusat Pentadbiran Sultan Ahmad Shah (PPSAS), Sungai Besi – Ulu Kelang (SUKE) Highway, Light Rail Transit 3 (LRT3), and so on.

Having cemented its reputation in construction excel-lence, the company then expanded its portfolio to property development and strategic investment. Besides undertaking affordable-luxury developments, GBG also offers a plethora of premium real estate in mature metropolises and emerging economic hotspots in Johor, Kota Kinabalu, Kuala Lumpur and Selangor.

“On top of our current construction value of around RM2 billion (US$477 million), which is still our core business, we

expected to bring in almost RM3 billion (US$715 million) worth

says Azizan Jaafar, group CEO of GBG. “We are a strong organisation known for delivering quality and value. This is the DNA that we want to carry into our property division.”

Transformation to build trust

Taking over the reins of GBG in April 2016, Azizan, who has over twenty-six years of experience in the construction and property industry, had barely warmed his cushy seat as the new chief when he sprang into action to spearhead a massive restructuring exercise. The transformation plan was timely to turnaround the business, which was facing mounting debt lev-

operation costs.To tackle the piling debt, GBG monetised several non-core

assets, including three parcels of land in the state of Selangor. This raised net cash proceeds of about RM58 million (US$14 million), of which RM25.6 million was received by the end of

Meanwhile, the company remained steadfast on its ongoing joint-venture projects on two parcels of land. One of them is The Peak in Johor Bahru, Johor. The other is the One Jesselton Waterfront mixed development in Kota Kinabalu, Sabah, which

-tential to contribute a sizeable chunk of recurring income from the mall and hotel operations in the future.

A revamp of the contract procurement strategy also bulked up GBG’s construction order book considerably. Before 2016, the group recorded a total of RM350 million (US$83 million) business wins over three years. Now, under Azizan’s leader-ship, the order book stands at RM2.8 billion (US$668 million) in 2018. GBG also secured the RM1.3-billion (US$310 million) project from Prasarana Malaysia Berhad to construct and complete part of the LRT3.

From a high 22.8 per cent overhead cost as a percentage of revenue in 2015, the transformation process managed to reduce the operation cost to a healthier 8.9 per cent last year.Technology and innovation have been key in boosting produc-tivity and management processes, as well as implementing stringent cost controls throughout the restructuring period.

Azizan strongly beliefs that the company’s success de-pends on GBG’s human capital, and employee commitment to the transformation strategy. “Part of our transformation plan was to build a GBG team that is committed, innovative, and has high integrity,” explains Azizan. “Everyone has got strengths and weaknesses, but most importantly, our team has the drive to learn and grow as one”.

Azizan believes the company is on track for a solid turn-around. This is evident from the growth in shareholdings of institutions such as pension and insurance funds from zero to 47 per cent of total equity in April 2017 – a mere 12 months into the restructuring exercise.

“The main goal of the transformation is to build a trustwor-thy organization that can deliver. In April 2016, when I took over, we only had one per cent of institutional investors in the group. Today, the number has increased to more than 50 per cent, which shows that our restructuring has been successful

able to deliver the bottom line,” explains Azizan.“That is the true value of our company, and the reason why

we have gained the trust and support of our stakeholders, clients, subcontractors, and suppliers,” he says.

Johor Bahru hilltop development satiates demand for luxurious real estate

development arm. Four major projects carrying its brand of excellence are now on investors’ radar, namely The Peak in Johor Bahru, Contours in Melawati Heights, Kuala Lumpur,

One Jesselton Waterfront, Kota Kinabalu. The Peak, especially, stands out with its prestigious ad-

dress and proximity to Singapore – seamless access to the island state takes only about 30 minutes.

“The Peak is the only residential property in Johor Bahru that the threshold for foreigners to purchase is RM500,000 (US$119,000); most of the other properties have threshold sitting above RM1 million. Situated 30 minutes away from Sin-gapore, the condominium is also a freehold development – this is a great opportunity for foreign investors,” Azizan points out.

The luxurious hilltop sanctuary has integrated the latest security and lifestyle technologies to deliver peace-of-mind

for an uninterrupted view, is also designed as a corner unit. Sky Villas, which are the larger units of The Peak, boast of

balconies that can be turned into sky gardens, with only two

Alternatively, up and coming executives seeking more practi-

2+1 bedroom Executive Suites, and 2+1 bedroom Panorama Suites.

Slated for completion by the end of this year, The Peak is strategically located along highways and public transportation routes to allow easy connection to Singapore. The low-density, furnished homes are surrounded by amenities including Mid Valley Southkey Megamall and IKEA, world-class golf cours-

es, local and international schools, as well as top medical facilities.

Residents of The Peak can also look forward to a posh 1.85-acre private club of their own. The development offers 50 different amenities wrapped in prestige and exclusivity, including a stargazing deck, look out point, sky barbeque and dining area,

aqua gym, yoga room, sauna, various gardens, aqua park for kids, and kids putt-putt golf.

Other golden opportunities and lucrative potentials

Those in the market for idyllic living in the midst of

One Jesselton Waterfront at Kota Kinabalu, Sabah.“The One Jesselton Waterfront is my dream de-

velopment,” says Azizan smilingly, “It is part of the waterfront mixed development that is located right

www.astaka.com.my

(above pictures) The Peak, a premium low-density development of two 39-storey interconnected towers spread over 5.5 acres. (below picture) The Peak low-density homes are a celebration of contemporary design and space.

gbg.com.my

Why invest in Malaysian property?

The weather, toggling between rain or shine, is temperate all year round. There is no need to look over one’s shoulder for major natural disasters like volcanoes, earthquakes and typhoons. The urban infrastructure of highways, public trans-portation, airports and seaports are relatively modern and well-connected. The multicultural population is friendly to expatriates.

The healthcare services are ranked best in the world in the 2019 International Living Annual Global Retirement Index, thanks to the English-speaking doctors, affordable medicine prescriptions and top-notch services. International education is ample in variety and quality. The business environment is welcoming, ranking 15th among 190 economies worldwide in the World Bank’s Doing Business 2019 Report.

These winning factors of Malaysia are increasingly entic-ing Hong Kong’s property investors. Rattled by the heated anti-government protests raging in their own island, the well-heeled are shifting their sights to the high-yield nests in Southeast Asia instead. In Malaysia, especially, Hong Kong citizens are reportedly snapping up newly-launched residential units – an enthusiasm fueled by the country’s relatively stable political climate, multilingual society easing integration and communication, and spacious housing at a fraction of the cost of Hong Kong’s typical shoebox condominiums.

in Malaysia, their appetite driven by the tropical haven’s repu-tation for vacation and retirement living. Chinese investments in Malaysia’s residential real estate are expected to double by 2025, according to Juwai.com, a popular platform that markets properties worldwide to Chinese investors. Its data recorded a 600 per cent growth in demand from Chinese buyers for Malaysian real estate since 2017.

Reuters also reported in August that interest in the Malaysia My Second Home (MM2H) initiative has spiked among Hong Kong residents.

Open to all foreigners, MM2H is a government programme

Those aged below 50 years old have to show proof of liquid assets worth at least RM500,000 (US$119,000) and open a

For those above 50, it is liquid assets worth RM350,000 and a

Foreigners used to have a threshold of RM1 million (US$239,000) to purchase urban high-rise properties. How-ever, this threshold will be reduced to RM600,000 next year, according to the Malaysian Budget 2020 announcement in October. This will likely open up more appetite for foreign investment.

The uptick in interest may bring even more attention on Johor Bahru, a city at the Southern tip of Peninsular Malaysia

quarter million Singaporeans cross the border to Johor every week, many of them enjoying cheaper retail therapy at the mushrooming malls, or tasty bites at hawker stalls and gour-met restaurants alike, or just to unwind – a testimony of Johor Bahru’s livability and convenient connectivity.

The connectivity is expected to improve with the planned Rapid Transit System (RTS) linking Bukit Chagar in Johor Bahru to Woodlands in Singapore.

In a South China Morning Post report in June, a spokesper-son for a property agency told a SCMP reporter that more than half of the 21 released units at a condominium project in Johor Bahru were sold within a weekend to buyers from Hong Kong. He further estimated that properties in Johor Bahru is about half the price of an average home in Bangkok and “about 20 times cheaper” than prime locations in Singapore.

The lower price of Johor Bahru homes – many of them

in apartment development several years ago. However, Ma-laysian authorities have halted approvals for construction of residential high-rise since the end of 2014, hence house prices are expected to remain stable.

For now, international bargain-hunters are taking advantage of the ticking time to seize premium properties in the vibrant metropolis of Johor Bahru, where Singapore is a short distance away and a dollar can stretch a long way.

The value-driven real estate market has made Malaysia an attractive property investment destination

ABOUT THIS SECTION: Produced by Shaping Asia Media. For full

interviews with property leaders and more information about property investment opportunities in Malaysia, please visit: aseanbusinessleaders.com/malaysia-property

Foreign buyers are in for a bargain as Malaysia slashes the minimum price threshold for property sales

Sponsored Feature

“We deliver what we promise, and our track record will speak for itself. In the end of the day, we need to be result-oriented”.

“Advancing with a strong tested formula has positioned our group’s performance staying relevant by meeting markets needs for local and international property buyers”.

living experience in kota kinabalu cbd.

Azizan Bin Jaafar, Group CEO of Gabungan AQRS Berhad (GBG)