Finding right balance at mixed-use development
29 July 2024
It is not easy to manage a mixed-use development, which consists of different components - each with owners and residents of different needs, expectations and requirements.
Paradigm PJ in Kelana Jaya is one such development, and Henry Butcher Malaysia (Mont Kiara) Sdn Bhd (HBMK) - which has been the property manager since 2019 - recognises the complexity of managing a project like this.
HBMK managing director Low Hon Keong is aware that managing Paradigm PJ is not without its challenges and flaws.
“In a mixed-use development like this, [every component] needs each other but we are also conflicting with each other,” he says. “The residential components need to [prioritise] the safety and security aspect, the retail components need to have as many visitors as possible. How do they live together then? This is our objective as the property manager.”
Developed by Jelas Puri Sdn Bhd, a member of the WCT Group of Companies, Paradigm PJ is a 12-acre freehold mixed-use development. It comprises a mall segment and three towers that houses two serviced apartments, a hotel and an office. Paradigm PJ was completed in 2019.
One of the two serviced apartments are The Azure Residences, which is part of a 31 storey tower. The Azure Residences occupies Levels 5 to 18 and offers 189 units with built-ups from 765 to 1,815 sq ft. In the same tower, there is a hotel component called Le Meridien Petaling Jaya which occupies Levels 19 to 30.
The other serviced apartment is also 31 storeys high called Sapphire Residensi. It offers 229 units that have built-ups from 1,001 to 1,815 sq ft.
The other tower is the 32-storey office tower called The Ascent. The mall component, Paradigm Mall PJ, has been operating since 2012 and is a landmark in Keiana Jaya.
The Azure Residences, Sapphire Residensi and the common areas of the entire Paradigm PJ are managed by HBMK while Paradigm Mall PJ, Le Meridien Petaling Jaya and The Ascent are managed by their internal teams.
Joint management body (JMB) treasurer Cheong Yee Sem, representing Sapphire Residensi, says to have everyone's interests at heart, the JMB and property manager must first understand the objectives of each component and align them with the other components.
“Different components have their own agenda and interest in taking care of the development. We need to boost the visitor footfall at the mall, but that would mean compromising the security aspect for the residential side. So, we have to consider all these factors, resolve the issues together and align ourselves [towards the same goal].”
For example, he brings up an interesting case that had become a pain point for The Azure Residences and Le Meridien PJ due to the conflicting nature of the components.
“We had difficulties when it came to the renovation hours. Residents can only renovate during working hours, but at the same time, the hotel could also have a function or conference when renovations are taking place,” says Cheong, adding that the noise from the renovations was affecting the atmosphere at the conferences.
To solve this issue, the JMB decided that Le Meridien PJ and The Azure Residences must constantly check each other's schedules. Residents who want to do renovations would inform the management, and HBMK would then check with the hotel to make sure that the timing does not clash with a conference.
“At the end of the day, our long-term goal is to increase the value of the commercial, residential and office components,” says Cheong.
Low concurs, adding that it is very important that the committee work well together. “If they are not responsive, the property manager cannot [do their job properly],” he adds.
Although the retail components are not managed by HBMK, Low notes there is a collaborative spirit between each component. He cites the mechanical and electrical (M&E) teams as an example. The M&E teams of each component are very clear on their responsibility and scope of duty, yet at the same time, they monitor each other.
“Whenever we find out that there's a fault in the retail component, we will report [the fault] to representatives of that component. We report to each other very closely so that we have more eyes. This way, the upkeep of the property will be even better. Eor example,our transfer rooms are right next to each other. If there is something wrong with the other component's transfer room, we will quickly inform them,” Low says.
The collaboration between the committee has paid off, with Paradigm PJ winning Bronze in the 10 Years and Above - Mixed Development (Entire) category at The Edge Malaysia Best Managed & Sustailiable Property Awards 2024.
Fair representation
Besides finding the middle ground, having a fair representation in the committee is crucial so that concerns from all parties can be discussed and addressed during committee meetings. This ensures a harmonious environment for all the users of the different components.
"The participation of representatives from each component in the committee is very important. Every component needs to be represented so that everyone's concern can be addressed during meetings. Without fair representation in the committee, how are we able to [effectively] communicate with the [people]?” asks Low.
JMB secretary Yaw Choon Yee, representing Paradigm Mall PJ, cites a recent situation involving Grab drivers'' parking at non designated areas around the mall and near the residential towers, which became an issue among the residents.
"Cheong raised a concern about Grab drivers parking everywhere in our JMB. I informed the mall operator of this issue so that they can take action. Once action had been taken, the mall operator immediately informed me and I updated the group chat,” says Yaw, emphasising her role as representative of Paradigm PJ and as a bridge between the mall operator and the JMB.
Safety is a crucial aspect for Paradigm PJ. Therefore, HBMK has designed a security system for each component. Basic security apparatus including a CCTV system, alarm handling system, vehicle access system, guard tour system, access card system and vigilant round-the-clock security.
Financial sustainability
A well-maintained development is also dependent on its financial health and planning. At Paradigm PJ. the JMB, together with HBMK, has prepared a comprehensive project roadmap that details future projects as part of the asset lifecycle management in the next five years. Through this project roadmap, they will plan their finances accordingly, HBMK associate director Lee Siang Ling says.
“We have a project roadmap that we have planned for the next five years. Some of these [future undertakings such as facade cleaning, repainting and floor polishing] have been discussed in the annual general meeting for the residential side,” she adds.
Cheong concurs that a proper strategy is necessary to ensure the property is well managed and maintained.
Besides that, several cost-optimisation initiatives have also been implemented by HBMK at the residential component including a reduction in the number of cleaners and security personnel. In addition, the air-conditioning units in the corridors of all levels at The Azure Residences has been turned off, replaced instead by ventilation fans on timers. Lighting at all components have been replaced with energy-efficient LED light bulbs.
Through this initiative, the JMB has managed to substantially reduce its electricity bill and lessened expenses for security and cleaning services.
Other sustainability initiatives that have been implemented throughout Paradigm PJ are the installation of power inverters for the air-conditioning units and elevators, waste recycling programmes and the recent installation of electric vehicle charging stations at Sapphire Residensi.
Improvement works
As Paradigm PJ is more than a decade old, enhancement works have been done. These initiatives include road repairs, drainage cleaning, tunnel board installation, wall painting, landscape rejuvenation and road grating between 2020 and January 2024.
Security has been beefed up with the implementation of a police booth at the entrance of Paradigm Mall PJ, which Low notes is not only beneficial to the mall but also the entire development.
Aside from having a good property manager, Low reckons the developer also plays an instrumental role during the design stage of the development for the project's functionality and management feasibility. Next, it is the responsibility of the property managers to study the concept of the project, he adds.
“The planning of a mixed-use development whether it is by the developers, consultants or architects, is very important because a well-planned mixed-use development will result in a well-managed development. Then, as a property manager, our role is to understand the concept of the mixed-use development and its design,” he notes.
“Once we understand these, we would then be able to work out a financial plan for each component. This is to ensure there is no confusion on how much one should pay for the maintenance charges.” He also advises developers and consultants: "When it comes to the management of the common area, this all falls back to the design of the mixed-use development itself. Therefore, it is very important that the developers and consultants [give] serious consideration [to] the design."
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