Since taking over the helm of Sime Darby Property Bhd a year ago, managing director Datuk Tunku Badlishah Tunku Annuar has been busy crafting up strategic plans to build on the company’s strength as a formidable local and international property player.
Datuk Tunku Badlishah ... ‘The merger has allowed us to enhance operational efficiency.’
The mega merger of Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd in 2007 has created the country’s largest property group in terms of landbank and ongoing developments.
“The merger has allowed us to put in place strategic transformation initiatives to enhance operational efficiency as well as establish strategies for sustainable growth,” Tunku Badlishah says in a recent interview with StarBizWeek.
Following the merger in November 2007, priority was placed on establishing a Target Operating Model by July 1, 2008. This entailed a complete review of the organisation structure and operating processes by adopting best practices within the merged entities and re-engineering the organisation to best deliver the strategies and synergies expected from the merger.
For example, previously sales, marketing and customer service functions were centralised in the corporate headquarters. In an effort to improve the customer service and better understand the market, township offices have been established in each of the company’s ten townships. These offices are helmed by a township head with independent sales, marketing and customer service operations.
Tunku Badlishah says a comprehensive review was also undertaken of the existing development plans for each of the townships and where possible, products and development phases were replanned to enhance development value.
“Efforts were made to identify and execute projects that could increase the marketability of the townships for the benefit of existing and future residents,” he says.
As an example, he says Phase 5T in Putra Heights was originally planned as a typical terraced housing project consisting of 22’ x 75’ and 24’ x 75’ houses with about 500 units on 57 acres of land and an estimated gross development value (GDV) of RM275mil.
Taking into consideration its location at one of the most strategic areas in Putra Heights, The Glades has been re-planned as a premium gated development with meandering waterways and an exclusive lakeside club house with an adjacent retail complex – features that will enhance the project value and attract high-end buyers to the development.
Scheduled to be launched in the first quarter of 2010, The Glades product mix totaling 409 units includes bungalows, cluster villas, courtyard homes and two-blocks luxury condominiums with an estimated GDV of RM700mil, a 250% increase compared to the original plan.
Sime Darby Property has also pioneered a comprehensive Safe City agenda for its Ara Damansara township in its continuous efforts to create a safer living environment for its communities.
Launched by Home Affairs Minister Datuk Seri Hishammuddin Tun Hussein on July 21, the initiatives are based on the Safe City criteria set by the Federal Department of Town and Country Planning, Ministry of Housing and Local Government.
Tunku Badlishah says the success of Sime Darby Property’s township projects so far show the merged entity has been well accepted by the public.
“Buyers are buying into the company’s reputation as a reliable developer with quality projects in good locations, innovative products and wholesome living environment.”
Having a common marketing platform such as the Parade of Homes Series, allows for the promotion of the company’s ten townships under a single initiative.
“We are constantly looking at innovative ways on how to assist potential homebuyers make their home ownership dream a reality. One of our most successful marketing initiatives is the Parade of Homes Series which was launched in June last year.
“The overwhelming response from homebuyers to the three campaigns so far exceeded our expectations. It is an indication that despite concerns over the economic climate, home ownership remains a priority among Malaysians.
“We just need to come up with out-of–the-box marketing ideas to give them the confidence to make that decision to purchase,” he adds.
Its latest Parade of Homes from March 6 to June 15 managed to record sales of 1,657 housing units worth more than RM1bil, by far the highest sales since its first launch last year.
“It is a major accomplishment given the weak economic environment that has negatively impacted the property industry,” Badlishah says.
Post merger, the company has also given top priority to research and development innovation.
Tunku Badlishah believes the future success of the company is dependent on its ability to create desirable, innovative and environmentally-friendly products by establishing new typologies, utilising new materials and construction methodologies and collaborating with cutting-edge technology providers.
Synergistic operational efficiency in research and development, product innovation and marketing will ensure the merged Sime Darby Property becomes a leading industry player in product offerings and sales going forward.
For example, previously sales, marketing and customer service functions were centralised in the corporate headquarters. In an effort to improve the customer service and better understand the market, township offices have been established in each of the company’s ten townships. These offices are helmed by a township head with independent sales, marketing and customer service operations.
Tunku Badlishah says a comprehensive review was also undertaken of the existing development plans for each of the townships and where possible, products and development phases were replanned to enhance development value.
“Efforts were made to identify and execute projects that could increase the marketability of the townships for the benefit of existing and future residents,” he says.
As an example, he says Phase 5T in Putra Heights was originally planned as a typical terraced housing project consisting of 22’ x 75’ and 24’ x 75’ houses with about 500 units on 57 acres of land and an estimated gross development value (GDV) of RM275mil.
Taking into consideration its location at one of the most strategic areas in Putra Heights, The Glades has been re-planned as a premium gated development with meandering waterways and an exclusive lakeside club house with an adjacent retail complex – features that will enhance the project value and attract high-end buyers to the development.
Scheduled to be launched in the first quarter of 2010, The Glades product mix totaling 409 units includes bungalows, cluster villas, courtyard homes and two-blocks luxury condominiums with an estimated GDV of RM700mil, a 250% increase compared to the original plan.
Sime Darby Property has also pioneered a comprehensive Safe City agenda for its Ara Damansara township in its continuous efforts to create a safer living environment for its communities.
Launched by Home Affairs Minister Datuk Seri Hishammuddin Tun Hussein on July 21, the initiatives are based on the Safe City criteria set by the Federal Department of Town and Country Planning, Ministry of Housing and Local Government.
Tunku Badlishah says the success of Sime Darby Property’s township projects so far show the merged entity has been well accepted by the public.
“Buyers are buying into the company’s reputation as a reliable developer with quality projects in good locations, innovative products and wholesome living environment.”
Having a common marketing platform such as the Parade of Homes Series, allows for the promotion of the company’s ten townships under a single initiative.
“We are constantly looking at innovative ways on how to assist potential homebuyers make their home ownership dream a reality. One of our most successful marketing initiatives is the Parade of Homes Series which was launched in June last year.
“The overwhelming response from homebuyers to the three campaigns so far exceeded our expectations. It is an indication that despite concerns over the economic climate, home ownership remains a priority among Malaysians.
“We just need to come up with out-of–the-box marketing ideas to give them the confidence to make that decision to purchase,” he adds.
Its latest Parade of Homes from March 6 to June 15 managed to record sales of 1,657 housing units worth more than RM1bil, by far the highest sales since its first launch last year.
“It is a major accomplishment given the weak economic environment that has negatively impacted the property industry,” Badlishah says.
Post merger, the company has also given top priority to research and development innovation.
Tunku Badlishah believes the future success of the company is dependent on its ability to create desirable, innovative and environmentally-friendly products by establishing new typologies, utilising new materials and construction methodologies and collaborating with cutting-edge technology providers.
Synergistic operational efficiency in research and development, product innovation and marketing will ensure the merged Sime Darby Property becomes a leading industry player in product offerings and sales going forward.
The Sime Darby Idea House is a socially, economically, and environmentally responsive prototype dwelling that provides an insight into future tropical living.
“One of the key initiatives of the year is the Sime Darby Idea House where we are showcasing the latest in construction solution, system applications which will be an example of how green architecture, good design and sustainable living can work harmoniously.
“The Sime Darby Idea House is a socially, economically, and environmentally responsive prototype dwelling that provides an insight into future tropical living.
“Conceived as a test bed for new ideas, the house showcases the latest in sustainable architecture in the buildings’ quest to become the first carbon zero residence in South East Asia,” says Tunku Badlishah.
Sharing his passion for the project, Badlishah says the Idea House will be a self sustaining building that generates power from the sun, reuse harvested rain water and is built entirely on the principle of modular construction where the user would be able to expand and contract the building as the need arises.
The entire frame and construction is modular to provide not only a speed and ease of construction, but also the ability for the house to be demounted in the future in order to preserve the terrain for future generations or future development.
Another initiative is The R&D Village which is a 20-acre experiment facility to be located in Elmina East.
Tunku Badlishah says the facility will be the testing platform to analyse various performance aspects of the company’s latest prototype designs.
“Working closely with our vendors and suppliers, the R&D Village will test and demonstrate new building products, construction technologies and system applications to the public in order to evaluate the response of the market.
“What we hope to offer to our partners is an opportunity to test and showcase products that have not been available or generally associated with regular home offerings,” he further explains.
He says the merger has allowed Sime Darby Property to take advantage of its increased scale by negotiating better terms with its vendors for the benefit of purchasers.
Significant cost savings and quality improvements have been achieved through identification of preferred vendors and negotiating pricing based on estimated annual requirements.
“Sime Darby Property is giving preference to vendors whose manufacturing process and products are “green” and “sustainable”.
“Quality has been enhanced as contractors are required to utilise specialist installers/applicators nominated by the preferred vendors and the product warranties are issued directly by the manufacturer to the purchaser,” he elaborates.
So far, the new procurement initiative has resulted in savings of up to 20% on certain building materials.
Tunku Badlishah says construction costs have also been reduced by combining construction contracts that are within the same location, as it has resulted in significant savings on the cost of preliminaries and mobilisation.
By The Star (by Angie Ng)
“One of the key initiatives of the year is the Sime Darby Idea House where we are showcasing the latest in construction solution, system applications which will be an example of how green architecture, good design and sustainable living can work harmoniously.
“The Sime Darby Idea House is a socially, economically, and environmentally responsive prototype dwelling that provides an insight into future tropical living.
“Conceived as a test bed for new ideas, the house showcases the latest in sustainable architecture in the buildings’ quest to become the first carbon zero residence in South East Asia,” says Tunku Badlishah.
Sharing his passion for the project, Badlishah says the Idea House will be a self sustaining building that generates power from the sun, reuse harvested rain water and is built entirely on the principle of modular construction where the user would be able to expand and contract the building as the need arises.
The entire frame and construction is modular to provide not only a speed and ease of construction, but also the ability for the house to be demounted in the future in order to preserve the terrain for future generations or future development.
Another initiative is The R&D Village which is a 20-acre experiment facility to be located in Elmina East.
Tunku Badlishah says the facility will be the testing platform to analyse various performance aspects of the company’s latest prototype designs.
“Working closely with our vendors and suppliers, the R&D Village will test and demonstrate new building products, construction technologies and system applications to the public in order to evaluate the response of the market.
“What we hope to offer to our partners is an opportunity to test and showcase products that have not been available or generally associated with regular home offerings,” he further explains.
He says the merger has allowed Sime Darby Property to take advantage of its increased scale by negotiating better terms with its vendors for the benefit of purchasers.
Significant cost savings and quality improvements have been achieved through identification of preferred vendors and negotiating pricing based on estimated annual requirements.
“Sime Darby Property is giving preference to vendors whose manufacturing process and products are “green” and “sustainable”.
“Quality has been enhanced as contractors are required to utilise specialist installers/applicators nominated by the preferred vendors and the product warranties are issued directly by the manufacturer to the purchaser,” he elaborates.
So far, the new procurement initiative has resulted in savings of up to 20% on certain building materials.
Tunku Badlishah says construction costs have also been reduced by combining construction contracts that are within the same location, as it has resulted in significant savings on the cost of preliminaries and mobilisation.
By The Star (by Angie Ng)
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