Blast from the Past - Building Local Credibility for ARA
Driven by a strong interest in redeveloping retail malls in Malaysia, ARA Group initiated the ARA Asia Dragon Fund I back in 2007 - the group’s flagship private real estate fund that focused on opportunities to divest existing and potential assets in Malaysia and other Asian economies.
As retailers were more cautious about expanding their businesses into new shopping malls at the time, largely due to a rocky economic climate, ARA looked at investments selectively; and consider upgrading, revamping, improving tenant mix, and assigning stronger management team of existing malls as vital approaches in ensuring success. The five (5) malls they acquired were Klang Parade, Ipoh Parade, 1 Mont Kiara, AEON Bandaraya Melaka, and Citta Mall.
We were part of this project with ARA; providing our services on more than a yearlong retainer as they established their presence in the Malaysian retail landscape. Apart from highlighting the development of the malls, our main target was to position the parent company, ARA, as the leader in retail mall sector in Malaysia, and the broader region.
One initiative in particular; for the purpose of enhancing the brand’s credibility and establishing their presence in Malaysia, we worked with an accomplished international architect brought in by the client for the refurbishment effort – Darryl Yamamoto, to talk to the media about his philosophy in mall design, or pointedly, re-design.
In particular, Darryl highlighted key design factors that can be implemented to lengthen the stay of shoppers, and ensuring frequent patronage. A few examples were the use of natural lighting, proper flooring and furnishing, visibility and positioning of the shops, as well as the integration of pillars in the mall. This profound discussion was linked back to the client – positioning them as a retailer with a prime concern towards building effective malls.
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| Designing efficient malls by Focus Malaysia |
What Makes a Good Shopping Mall - Interview with Darryl Yamamoto by BFM
Apart from the structural and design aspect of the mall, we also initiated discussions on the concept of community / neighbourhood mall. With insights from Darryl, we had the Director of Asset Management of ARA to highlight the brand’s commitment in presenting the malls as community and neighbourhood-driven. What makes a mall a community mall is really the focus, which is on the residents and immediate catchment. A community mall serves as a focal point for communities to engage in social activities in which other places might not offer. The main elements of concern would be the types of shop available (supermarkets and cinemas, which are considered anchor tenants, play a huge role), facilities provided (space to rest after a long walk, and prayer rooms), as well as activities (advertising and promotion initiatives by the mall).
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| Creating new shopping experiences by The Edge |
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| 百利大翻新 中路料再兴旺 by Oriental Daily |
Tenants came into play too; providing suggestions on how to give new energy to the community through retail. For Klang Parade, Ipoh Parade and 1 Mont Kiara, we interviewed a number of tenants alongside the management teams for this purpose. We zeroed in on the reasons the tenants chose to occupy the malls, promotion initiatives that can be done, ways to reach out to the community, as well as on the future of the malls.
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| Tenants Close-up by Shanghai Monthly |
We also focused on exclusive interviews with the senior management team, which made up of ARA Private Funds CEO – Ng Beng Tiong, ARA Director of Portfolio Management – Thomas Kong, and ARA Director of Asset Management – June Lim. For Beng Tiong, the interviews looked at the business aspects of the whole project, with him providing insights on the business direction of the retail acquisitions. The highlight for the interview with Thomas was on investment trends as well on retail market potentials in Malaysia. Apart from highlighting community driven malls, June, who was the person responsible for the overall property management and performance of the assets in Malaysia, discussed on the current and future developments of the malls.
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| ARA Malaysia stable for market investment by The Sun |
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| Meru makeover by The Star |
These initiatives boiled down to great coverage garnered in major publications, as well as on a number of broadcast stations. It also worked towards strengthening the credibility of ARA with its various stakeholders in Malaysia.
The community‘s perspective was also put in the limelight, particularly on the impacts of the refurbishment effort to them, as well as on their wish list for the malls. The initial focus during our undertaking with the client was on Klang Parade. The mall was closed for six (6) months for renovation work, and in leading to completion, we connected with members of the community to provide insights on how they would want the mall to be like. Community engagement; before, during and after the mall’s completion, allows the client to provide something that is more accurately of value to the people that matter most to their establishment.
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| ARA Asia Dragon Fund selling assets by Focus Malaysia |
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