Client: PT PP Properti Tbk.

Year: 2015-2016

KEY ISSUES ADDRESSED:

Balcony City Mall

• Physical problems were addressed, such as limited exposure (blocked by buildings, trees, and billboards), vacant entrance, exit way that passes through the traditional market area with unpleasant odor, inefficient layout design, poor functioning facilities, finishing materials are old due to lack of regular maintenance
• Balcony City Mall achieved highest occupancy rate at 67.4% in 2012, but then decreased continuously from 2013 to 2015 at 47.8%
• Existing rental rate for specialty store in 2015 was the lowest compared to the competitors
• Initial plan of tenancy mix differed significantly from the actual implementation
• Marketing strategy was not ideal, particularly when it comes to synchronizing the mall’s operations with tenants’ commitments to open their outlets.

Swiss Belhotel

• The hotel is located in the same area with Balcony City Mall, and the mall’s poor condition had direct and indirect effects to the hotel’s performances, from guests profile, to the attractiveness of the hotel in guests’ reviews
• Low exposure of the hotel from the main road and poor quality of the complex were not supportive.

RECOMMENDATION:

• Improvement to the building facade towards the main road, including minor facade treatment for the car parking structure.
• New concept as F&B and entertainment regional center, focusing on entertainment, games, and culinary attractions
• Identified target markets to be young workers and teenagers, families, hotel guests, middle segment
• Based on our brand mapping strategy, after renovation the mall’s new brand should promote more lifestyle and target younger crowd
• Hotel’s room rate should be impacted by the improvement of the mall, which will reflect a 10% increase in ADR.

IMPLEMENTATION BY CLIENT:

• Reopened in 2018 with the new name of Balikpapan Ocean Square
• New façade designs towards the main road and change of colour scheme.
• Unfortunately, despite some minor improvements to the physical condition of the mall, there was no retail tenancy strategy that followed, resulting in the same tenancy conditions where many floor areas remained empty.