SHAH ALAM 7 Dis. – Anak syarikat Kumpulan Jakel, Jakel Properties Sdn. Bhd. melancarkan projek pembinaan bangunan baharu Ibu Pejabat Bank Simpanan Nasional (BSN) Selangor di Seksyen 14 di sini, hari ini.SHAH ALAM 7 Dis. – Anak syarikat Kumpulan Jakel, Jakel Properties Sdn. Bhd. melancarkan projek pembinaan bangunan baharu Ibu Pejabat Bank Simpanan Nasional (BSN) Selangor di Seksyen 14 di sini, hari ini.
Pengarah Urusan Kumpulan Jakel, Datuk Mohamed Faroz Mohamed Jakel berkata, projek bernilai RM144 juta itu melibatkan pembinaan bangunan pejabat setinggi 20 tingkat dan dijangka menjadi mercu tanda baharu di bandar raya ini.
Menurutnya, projek tersebut yang dijadualkan siap pada Ogos 2018 merupakan projek ketiga dibangunkan oleh Kumpulan Jakel selepas Jakel Square dan pangsapuri J. Dupion di ibu negara.Menurutnya, projek tersebut yang dijadualkan siap pada Ogos 2018 merupakan projek ketiga dibangunkan oleh Kumpulan Jakel selepas Jakel Square dan pangsapuri J. Dupion di ibu negara.
JAKEL is associated with a successful textile retailer. Butnot many people are aware that the family-run business is embarking on a new business venture in property development.
Parked under Jakel Development Sdn Bhd, the company launched its maiden residential property project in Cheras, Kuala Lumpur, last month.
The project, named after silk textile J. Dupion, is a 1.7acre leasehold development. It features two 39-storey blocks with 399 units of condominiums ranging from between 800 sq ft and 2,249 sq ft and 11,000 sq ft commercial space, which is equivalent to 15-unit retail lots with an estimated gross development value (GDV) of RM400mil.
The group is planning to sell the units at between RM680 per sq ft and RM780 per sq ft.
Jakel Trading Sdn Bhd group managing director and chief executive officer Datuk Mohamed Faroz Mohamed Jakel said the group had been involved in the real-estate arena since 2003, pioneered by his late father Mohamed Jakel Ahmad.
“We started with buying shop houses for leasing and bought plots of land as investment. But since 2009, during the economic downturn, we started to accumulate land more aggressively,” Mohamed Faroz tells StarBizWeek.
He declines to reveal the group’s total land bank, but says most of it is in the Klang Valley.
Mohamed Faroz took over the helm of Jakel Trading in 2009.
One of his visions for the group is to shift the public perception on the Jakel brand as just a textile retailer.
“Mitsubishi Group is also involved in the textile trading business and today it has diversified into various businesses,” he says.
He explains that the family decided to venture into property development as it holds a lot of opportunities, especially since its property investment of more than 10 years has been contributing recurring income.
Jakel’s property portfolio comprises shop lots in the vicinity of the Masjid India area in Kuala Lumpur, Bangi, Cheras, Shah Alam in Selangor and also in Johor Baru.
Despite the subdued property environment, Mohamed Faroz is upbeat on the long-term prospects of the sector. The implementation of the goods and services tax is also another factor.
In tune with the market
“We do see the property market softening at the moment, but we believe that investment in property can be lucrative if you identify the right location, coupled with a product mix that is in tune with the market,” he adds.
About 70% of its residential units in J. Dupion have already been sold, just a month after launching , while the commercial space will be leased.
Mohamed Faroz says the group has done market research to pursue products that meet customer needs with attractively-priced properties in strategic locations.
“We found that in Kuala Lumpur, customers prefer smaller condominium units,” Mohamed Faroz says, adding that 50% of the J. Dupion development caters to the demand.
The development is located at Jalan Sembilang off Jalan Loke Yew in Cheras, 5km from the city centre. It is accessible via the Cheras Kajang Highway, Sungai Besi Highway, East-West Highway and the MRR2.
The main highlight of the project is its proximity to the upcoming MRT Line (Taman Pertama Station), which is slated for completion in the first quarter of 2017. This will help to maximise capital appreciation and rental yield. The Taman Pertama Station is four stations away from Bukit Bintang.
The day-to-day necessities can be bought at Tesco and the upcoming home furnishing store, Ikea. Pantai Hospital in Cheras and Taylor’s International School are also in the neighbourhood .
Among the facilities are an infinity pool, multi-purpose hall, jacuzzi and gymnasium, on the podium level on the ninth floor.
Interestingly, Jakel is also planning an integrated development comprising commercials, residential and retail components, a stone’s throw from the J. Dupion project. This development will feature a shopping mall, apartments, hotels and office space.
The integrated development project, known as Dupion Island, will be built on 14-acre on the previous Cheras Velodrome land.
“We are planning to build a covered walkway to connect the J. Dupion project with the MRT station, which will also be linked to the Dupion Island project,” says Jakel Trading chief operating officer Mohamed Nizam Mohamed Jakel.
He says the group is planning to launch property projects with total GDV of RM3.5bil in the next five years.
Mohamed Nizam, who is also the deputy chief executive officer of Jakel Development, says the group targets to launch two projects in Wangsa Maju in second quarter of next year, which will comprise of three blocks of residential apartments.
Jakel Group, operates 20 stores nationwide and employs close to 5,000 workers. In terms of sales, Jakel Group has been growing steadily, especially over the past five years. Its revenue compounded annual growth rate stood at 20% per year.
More shopping malls
Having successfully opened the world’s largest standalone textile mall, Jakel Mall, in Jakel Square in Kuala Lumpur in February, the group has two more malls in the pipeline.
One of them will be in Seksyen 7, Shah Alam on seven acres with an estimated GDV of RM1.7bil, while the other will be in Bangi on a about three acres with a GDV of RM850mil.
In 2012, Jakel Group bought the Cap Square north and south towers for more than RM300mil. Combined, the two retail podiums have a total gross lettable area of more than one million sq ft.
Subsequently, the group redeveloped Cap Square into Jakel Square, comprising Jakel textile mall with an area of 330,000 sq ft, a hypermarket, a four-star syariah-compliant hotel, the first in the country, of more than 300 rooms, and 2,543 car parking bays.
The mall is also expected to welcome Middle East’s largest hypermarket chain Lulu Group that operates a big grocery, IT and electronics supermarket chain in Abu Dhabi, in the later part of this year. Lulu will be occupying more than 300,000 sq ft of space in Jakel Square.
Mohamed Nizam says the development of both malls in Shah Alam and Bangi would have the same concept as the Jakel Square.
He explained the Shah Alam project would comprise one textile shopping mall, one Lulu hypermarket, retail space and three blocks of residentials. Lulu is expected to occupy about 250,000 sq ft of the development.
“Both malls will have the same concept as the Jakel Mall, which would take about three years to complete,” Mohamed Nizam says.
He adds that the group is targeting to start construction in Shah Alam and Bangi in 2017 and 2018 respectively.
Jakel started as a Muar carpet wholesaler for small traders and was founded by Mohamed Jakel Ahmad in 1983.
“When we came to Kuala Lumpur nobody knew about Jakel and we had to build the Jakel name from nothing, but with hard work and aggressive brand building exercise we were able to grow Jakel to what it is today,” says Mohamed Faroz.
He says the group receives close to 100,000 visitors to its mall per month.
Jakel opened its first retail branch in Segamat in 1985. It built strong market presence nationwide by venturing into textile retail trading and supplying textiles to both the government and private sectors.
Its first store in the Klang Valley was opened in 2007 in Jalan Masjid India, Kuala Lumpur that involved a capital outlay of RM30mil. “For our venture into the property development sector, we would also need to build our brand first, just like how we built our brand in the textile retailing business,” Mohamed Faroz says.
When Mohamed Jakel Ahmad founded Jakel Trading in Muar, Johor, in 1983 as a carpet wholesale supplier to small traders around the vicinity of Muar, little did he know he had build the foundation for a multi-million ringgit business group based on hard work, strong business ethics, reputation and quality products for his 12 children.
Mohamed Jakel had always emphasised the importance of strong family bond among his children and taught them the innate skills to do well in business.
From its humble beginnings of starting out with just a few thousand ringgit of capital, the group is today a renowned textile retailer of a broad variety of textiles that meet the needs of the lower income, medium and premium customers. It also offers a broad range of ready made fashion apparels making it one of the leading traditional wear fashion house with its 30 strong R&D team.
It has set its sight to make further headway in property investment with quite a sizeable assets in its portfolio, and will soon venture into property development.
As an indication of its business prowess, Jakel has seen its sale volume ballooned over the years from a mere few thousand ringgit in the 1980s to RM648mil in 2013 and RM700mil in 2014. Sales revenue may well touch RM800mil this year and hit the RM1bil mark by 2017. Since its first retail branch was opened in Segamat in 1985, it went on to build up a strong market presence nationwide by venturing into textile retail trading and supplying textiles to both the government and private sectors. Its first store in the Klang Valley was opened in 2007 in Jalan Masjid India, Kuala Lumpur that involved a capital outlay of RM30mil.
Datuk Mohamed Faroz Mohamed Jakel, the eldest son of 12 siblings, was only in Form 1 when his father moved the family to Segamat to open up Jakel retail store “as Muar was too quiet then, being the pension town of Johor”.
He was roped in to help his father managed the family business after completing his Form 5 education. Through the experience he gained he has contributed significantly to the growth and expansion of Jakel group’s business.
He was convinced that more people would buy textiles than carpets and managed to convince his father to switch into the textile business. That advice had helped to change the course of Jakel’s business direction and the many opportunities that came its way.
When the patriarch of the Jakel group passed away in 2009, Mohamed Faroz, who was 37 years old then, took over the helm as the group managing director and chief executive officer and went on to build Jakel as one of the most recognised brands in textile retailing.
In 2010 Jakel invested RM50mil to open an outlet in Section 7, Shah Alam. The 80,000 sq ft store set the stage for Jakel to make it into the Malaysia Book of Records in 2010 as the Largest Textile Retail Outlet in Malaysia. By then it has 20 outlets nationwide, 16 of which are franchise outlets.
Mohamed Faroz says Jakel is the first textile company in Malaysia to have successfully opened 16 textile franchise stores under Perbadanan Usahawan Bumiputera since the opening of its first such outlet in 2004.
By the end of this month Jakel will be able to up its ante by many notches when the 330,000 sq ft Jakel Mall opens for business at Cap Square in Jalan Munshi Abdullah, Kuala Lumpur, which according to Mohamed Faroz will be the largest textile retail mall in the world.
In 2012, Jakel bought the Cap Square north and south towers which together with the two retail podiums came up to a total net lettable area (NLA) of 830,000 sq ft for for a total sum of more than RM300mil.
This prime freehold integrated commercial asset will comprise a textile mall, a hypermarket, a 4-star hotel of more than 300 rooms, and 2,543 car parking bays.
Mohamed Faroz says the Lulu Group that operates a big grocery, IT and electronics supermarket chain in Abu Dhabi will be occupying 300,000 sq ft of space in Jakel Square. Scheduled for opening around the second quarter this year, the Lulu supermarket is set to be another crowd puller. Jakel will also rent out a food court and small shops of about 200 sq ft for rental income.
This is not the first time Jakel is involved in the real estate sector. It has over the years built up a comfortable nest of property assets that can be traced to the company’s early days in Johor.
Strong family lineage
Besides teaching his children the virtues of hard work, strong business ethics and good quality products, the elder Jakel patriarch had always stressed to his children the importance of owning the group’s own retail property.
To succeed as a textile retailer and wholesaler, he believed Jakel needed to own the property so as to have control over its business plans and growth direction.
Mohamed Faroz says his father also wanted to ensure the company would not be subjected to sudden rental hikes or eviction notices once its business started to expand.
“Jakel started out occupying just 300 sq ft of space as we were sharing a 1,200 sq ft shop with three other tenants. We only managed to expand our business after moving into a bigger place .
Since then, we have been looking around for property to buy to accommodate the company’s business growth,” he tells StarBizWeek.
When many companies succumbed to the Asian financial crisis in 1997 and had to sell their property in exchange for cash, Jakel took the opportunity to snap up some of the fire sale property and build up a tidy nest of property assets.
In 1997, it paid RM1.6mil to buy the 6,000 sq ft Rex Theatre in1997. The building was demolished and in its place were five units of three-storey shop lots with basement that came to a total net lettable area of 32,000 sq ft.
Today, Jakel’s property portfolio comprises shop lots in the vicinity of Masjid India, Kuala Lumpur; Bangi; Cheras; and also in Johor Baru that contributes quite a tidy sum of recurring rental income to the group.
Having built up a sizeable portfolio of investment property that provides a tidy sum of recurring rental income, Mohamed Faroz and his siblings have set their sights to venture into property development in the Klang Valley under Jakel Development.
The property development arm was founded by the Jakel siblings that also include Mohd Nizam, Abdul Shiraz, Mohd Izani and Lokman. Its maiden residential project to be located in Jalan Loke Yew will be launched this year.
Faroz says going forward Jakel Development will be actively moving into land acquisition and real estate development of both residential and commercial projects. It has in the pipeline a number of integrated residential and commercial developments for launch in the next few years.
Mohamed Faroz says his humble beginnings has made him grateful with what the Jakel group has achieved today and he believes in contributing back to society.
“Jakel is involved in various corporate social responsibility (CSR) activities through material and monetary contributions to foundations and orphanages, disaster relief funds, education funds, and sporting activities among others. We also donate to the underprivileged members of the society – orphans, single mothers as well as the elderly.”
For his contribution to society and the business world, Mohamed Faroz was awarded the Pingat Jaksa Negara title which carries the title “Datuk” In conjunction with the Yang Di Pertuan Agong XIV’s birthday on June 1, 2013.
And in recognition of his entrepreneurship, he was awarded the Business Icon Of The Year award at the Selangor Excellence Business Awards by Dewan Perniagaan Melayu Malaysia on Dec 8, 2014.
His success has inspired many young entrepreneurs and one of his favourite advice to them is that everyone must have a dream and that the dream can only be realized with good planning, passion and willingness to work hard, determination, perseverance and commitment. “While some people choose to chase after certificates, I go for my dream,” he says, adding that Jakel’s success is due to the relentless hard work of the Jakel siblings.
Mohamed Faroz believes the key to the group’s success is also its aggressive promotion campaign and excellent customer services. Its main strategy and approach is to undertake procedures to ensure that every single customer remains with the company for the long term.
“Jakel has always believe in the principals of building and maintaining excellent retail experiences and customer satisfaction at our stores. We have clear plans to expand in the fashion business and will launch our online business next month,” he says.
With the strong leadership and hands on management style of the Jakel siblings, the group is bound to achieve even greater success going forward as seen in the number of accolades it received including Best Textiles Shop in Asia by Asean Retail Chains & Franchise Federation in 2013 and Best Company To Work For in Asia by HR Asia.
With a bold entrance statement, J.DUPION fills its residents with a sense of grandness upon arrival, belying the careful thought and masterful execution behind each feature. With 5 lifts servicing each tower, a low-density layout of only 7 units per floor – majority of which offer a panoramic KL city view – and a solid security assurance, each facet of this development is designed to provide peerless comfort and matchless convenience.
Sales preview will take place in the 1st Quarter of 2015.
Jakel Square is an approximately 1 million square feet retail space offering an exciting shopping experience and lifestyle boutiques poised in the heart of Kuala Lumpur’s Golden Triangle. Well-connected via surrounding major thoroughfares and multiple transport hubs, Jakel Square offers all you may want in a city centre hotspot.
The mall is open to public in the 1st Quarter of 2015.