Redeveloping Old Klang Road

FAR East Organization, Singapore's largest private developer, plans to redevelop a commercial site in Old Klang Road, here, into an integrated lifestyle mixed development in three years.

Chief operating officer Chia Boon Kuah said the group had commenced a feasibility study on the supply and demand situation and the best product mix for the area.

Chia said in an interview with Business Times in Singapore recently that Far East was considering high-rise condominiums targeting the upper-middle income group, and retail components.

The group is also considering a 4-star hotel or serviced residences, and studying if the area has potential for medical suites.

"Old Klang Road is more developed today with the highways and other infrastructure. We think it is time to uplift the property market there and maximise its potential. But all these are still on the air. We have to wait for the lease held by the current tenants to expire in two years," Chia said.

Chia declined to reveal the project's gross development value and the property that it plans to redevelop.

On whether Far East would be keen to partner local developers and undertake joint venture projects here, Chia said the group was open to talks.

"We are not an active player in Malaysia and our feel of the market is not so good. So we want to remain cautious. We have land in Malaysia through an associate company, Yeo Hiap Seng Ltd, but the development plans are long term," Chia said.

A household name in Singapore and Malaysia, Yeo Hiap Seng has parcels of land in Johor and in other parts of Malaysia, held by its subsidiary Yeo Hiap Seng (Malaysia) Bhd.

On the redevelopment of Plaza Atrium in Lorong P. Ramlee, Chia said work was progressing.

Plaza Atrium, a 24-storey commercial block located next to Menara Pan Global, Menara SMI and Wisma Kim Seah, was built in 1984.

Far East made an application in 2005 to redevelop Plaza Atrium into a serviced apartment block and to build an adjacent 34-storey residences comprising 109 luxury units.

"We are bullish on the hospitality market. We will look out for interesting properties to own, to enter into a joint venture or manage in Malaysia, Vietnam and Indonesia while increasing our portfolio in Singapore," Chia said.

Far East, through Far East Hospitality, is the largest owner-operator of serviced apartments and hotels in Singapore with nearly 3,000 hotel rooms and 1,500 serviced apartments in its portfolio.

Chia said the group was investing S$1 billion (RM2.45 billion) to build four new hotels and a serviced apartment block in Singapore.

This will add about 1,000 hotel rooms and 200 serviced apartments to the current room inventory over the next four to five years.

By Business Times