Klang Sentral Commercial Centre, Klang
by CL
1 Nov 2007

Introduction

A BOT (Build-Operate-Transfer) project that kicked started two (2) years plus ago and situated as one of the new Klang town ship.  Launched as a commercial hub with new bus, express and taxi station of Klang.  It surrounded by Bandar Setio ECO Park Shah Alam, Bandar Setia Alam by SP Setia Group, Aman Perdana by Mah Sing Property Group and land bank areas that own by Sime Group.

Location
This is a new location, just in front of Jalan Meru and a few major express ways that recently developed by property developers and the Klang’s authority.  The concept is to create a new town ship that added to the master development plan of Klang.  As the existing Klang town ship has reached a mature level.

Soaring property prices around KL and PJ areas also create a new segment of potential home buyers in this area.  Neighboring with SP Setia award winning Setia ECO Park project, Aman Perdana project, new Tesco and Giant to be side by side with Klang Sentral Station, this will have a big impact on the commercial value of its shop offices.

It is also surrounded by land bank from Sime group, waiting for their master plan to be kicked off.  Lastly, it is a bus, express and taxi complex of Klang that are not many even in the entire Klang Valley if exclude Puduraya and Sentral KL.  It will create a tremendous flow of population around the area with multiple different income group level.  In term of location, it is like a time bomb just waiting to be exploded.

Developer
Titijaya group is a Klang based property company. In term of its past, recent completed and future projects, we would categorized them as an upcoming major developer and they are able to deliver. They have many listed on-going projects and future projects like Klang Sentral Station, Tiara Square USJ12 Subang, Harbour Point Klang, First Subang, Mutiara Point Klang, Tiaraville Subang, Subang Park Homes, Taman Bukit Cheras and etc. With its record, especially in Klang area, it can be as good as our national top property developers given their strengths and it niche play in Klang.

Special
Again, it is a bus, taxi, express station, it has retail shopping development in its new Sentral Walk project, with a sizable total of shop offices, with Giant retail store to be built within the next 18 months, Macdonald drive through, Petrol stations, opposite less then 5 minutes drive to Tesco building in progress. The specialty of this project is tremendous amount of population flow. That is it!

Against
Well, we try to look into different angles of this project, surrounding areas, infrastructure. We may suggest that the draw back is there are factories near the station. Though may not be a big impact but will have certain amount of tracks crossing the areas with noise and dust pollution.

Conclusion
In summary, Klang Sentral Station is a project that may bring handsome returns in the coming 3 to 5 years. Give a low entry cost of investment and many investors are in a wait and see attitude. This project we expect between 50 � 100% capital growth return and potential of 8-10% rental yield return. It will be a hidden jewel in town and we recommend a buy on this property and hold for at least three (3) years.