Chief executive officer Datuk Zamani Kasim said when Astaka started in 2012, people doubted whether the company could carry out the project as it did not have any track record.
“Individually, Datuk Daing A. Malek Daing A Rahaman (a controlling shareholder in Astaka) and myself have the track record but as a company, we have nothing. The Astaka is the first development by us as a company and we have proven ourselves.
“We started as a small developer with only four staff. Today, we have over 100 staff and have embarked on new developments like Bukit Pelali township in Pengerang,” Zamani told NST Property.
The Astaka, the crème de la crème of the luxury condos in the Iskandar region, features two towers standing at 70 and 65 storeys, respectively, offering a total of 438 units.
It is part of One Bukit Senyum mixed development that comprises a five-star hotel, a shopping mall, serviced apartments, office suites and an office tower.
Phase 1 of the development includes developing a tower to house the hotel and offices, the mall, a convention facility and condominiums.
“If everything goes to plan, we will start Phase 3 in the next few months,” he said.
RM1 BILLION INVESTMENT
Zamani said the investment for The Astaka@One Bukit Senyum is RM1 billion.
“Initially, people questioned why the company spends so much to develop the project. It is because we need to establish our brand and position our company. When we wanted to start this project, we did a market study. If other developers are building condominiums and pricing their products at between RM300,000 and RM600,000, we do something different. Why would I want to jump into the same market where there’s more competition?
“We want to differentiate ourselves, and based on the market study, we believe that the market is there, which is why we have sold 72 per cent of the units so far,” he said.
Zamani said there are 123 units still selling at The Astaka, with a potential value of RM300 million.
“We have appointed an agent in Singapore to market the remaining units because we believe Singapore is the market for us as it is very close (to Johor). We are also moving to other countries like indonesia, where we have done a roadshow in Surabaya.
“We are confident of selling the remaining units within a year,” he said, adding that China is also a big market for the company.
On the units which have been sold, Zamani said 70 per cent were purchased by foreigners, of which 50 per cent are Singaporeans and 20 per cent Indonesians. The other buyers are from Brunei, India, Japan and Bangladesh.
“We have already recorded RM800 million in sales. Singaporeans are buying units at The Astaka because of the price. We are selling our units at RM1,350 per sq ft (psf)... Compared to similar developments in Singapore, Singaporeans would have to pay three to four times higher even without factoring the currency exchange, which means it could easily cost them S$3,000 to S$4,000 dollar psf.
“Our units are between 2,207 and 2,659 sq ft with the duplexes measuring 5,700 sq ft. Even at RM1,000 psf, it is worth over RM2 million. But for the Singaporeans, that is only about S$700,000.”
Zamani said the condominium redefines luxury living in Johor Baru with its architecture, innovative designs, build quality, full range of facilities and luscious landscaping.
Residents can enjoy facilities such as a social dining room, cigar room, private dining room and a spa.
Zamani said as a developer, it is not only about selling units that are big but also developing an iconic structure.
“In our quest to have a comprehensive development under one roof, we built The Astaka first and then we went on to secure Johor Baru City Council (MBJB) as one of our tenants in One Bukit Senyum where we are building its headquarters to its specifications and then selling it to them.
“Normally in a city, if the city council is in one area, it will create a new city centre or central business district. Not only do we have an iconic residential tower and the local council, we (also) have other facilities coming up in Phase 3,” he said.
MBJB has inked a sales and purchase agreement with Astaka to buy the new headquarter for about RM343 million. The building will be completed by the end of next year.
“Hopefully, they can move in by the first quarter of 2020, and within the next five to six years, this place will be the city centre for Johor Baru,” said Zamani.
One Bukit Senyum is located about 800 metres from Johor Baru’s Customs, Immigrations and Quarantine Building and the future rapid transit system (RTS) station.
Zamani also hopes the government will resolve the issue of accessibility between Singapore and Johor Baru and reduce the travelling time.
“We have a guest from China who was very keen on The Astaka for investment purposes, but he got stuck for three hours in a traffic jam while on the way here. In the end he said it is difficult even though the place is very nice and comparable with Guangzhou. Moreover, the facilities here are not like they were 20 or 30 years ago. We have come near Singapore’s standards because we are so close.”
Zamani believed if the RTS was done earlier, the situation would be different.
“Moving forward, we need additional access. It is just like me inviting you to my place but you would take two to three hours to come, so you would not want to come,” he added.