Review on Oasis Ara Damansara by Sime Darby Brunsfield
by JP
23 Dec 2007

Introduction
We have a desert in town?  Oasis Ara Damansara, a project launched by Sime Darby Brunsfield located opposite Saujana Golf & Country Club.  It is a huge commercial hub and probably the largest in that area.  To a certain extend, it will bring a lot of energy back to this area that used to be so busy due to it previous International Airport Function.  Indeed, the entire township also planned with residential projects that Sime has played into a mid to up market segment.  No doubt, it is an Oasis in this area that is repositioning by Sime.

Location
Accessible via Jalan Subang or Persiaran Tropicana and NKVE, it is indeed a location that has serious potential.  Though is it not a 5 Stars location cause it used to be an international airport, I believe gradually this location may develop into strategic if the township is successful together with all neighbors’ developments are inter-connected in the future.

Developer
Sime Darby Brunsfield probably the key point in this project.  Needless to further explain as I would think Sime group (after the latest merger previously known us Synergy Drive) will even have more resources then ever to make this a success.  Imaging, they can position Tesco as a hypermarket in the area, they can put the biggest auto showroom, they can relocate a division to create crowds, they can do whatever without a fraction of cost but becomes a win – win to its own subsidiaries.  I think the index this round is the developer roaring over the location weighting.

Special
As mentioned above, the index of the developer is very heavy.  Thus, the most special I would think is your investment will be secured given the fact that Sime will do anything to make it a success as a brand name.

Secondly, I would think retail market will do well for this project because the potential of high income group people and Japanese expatriates are living around the corner.  One of the key is the international Japanese school around Saujana Golf and Country Resort.  High Margin retail lifestyle business can be established as an icon by its own with self sufficient crowds.

Against
Jalan Subang can be a story of traffic jam as the inner part of the area is filled with many new projects.  This road is upgrading at the time being but if a minor accident may cause you a bad jam since the major access at the moment is via Jalan Subang.

The other factor is timing, though it is a very potential project.  This is due to many large projects and phases are still in plan or progress, thus it is not like a striking hit if you invest into this project.  Typically, I would estimate around 3-5 Years from the date they kick start the project.  Or at least provide 2 years after project completion before you can really reap the profit of the “Monster” developer index.

Conclusion
At the average price of RM 300 per sf, (Retail will be definitely higher in estimate) the upside of the price is still very potential.  I am expecting the price will hit RM 350-450 upon completion.  If you are a commercial property investor with bullets, it is worth to buy if you have retained power.  If you are first timer looking for a striking location, you may need to buffer yourself another 1-2 years of installment without income before reaping the real profit. (Just in case).