Introduction
Redefining Subang? From residential to satellite town, from satellite town to compete further by filling of several new grand commercial office blocks, retail complex and also residential suites these years. First Subang is another project by Titijaya Group after its Tiaraville and e-Tiara projects. Though not a Class A commercial office, but it is a freehold asset located at Great Subang with modernized design.

Location
Located near Subang Jaya SS15, opposite Subang Parade and beside EON Bank along Jalan Jengka. It surrounded by all major developments like Carrefour, Subang Parade, Taylor’s, INTI and Metropolitan Colleges, KTM station, Subang Sheraton Hotel, Subang Holiday Villa and lots of new coming developments in the areas.

Connected by Federal highway, easy access to NKVE, NPE, LDP and KESAS expressway, KTM to KL Sentral and Klang, First Subang no doubt is in a golden location that you will have no worry on population flow as a key success factor of your commercial investment goal.

Internally of Subang, massive highways improvement has been done recently and the old days’ traffic problems are reduced to a certain degree. Of course future developments will largely depends on further improvement like LRT can only be the answer. In term of location, this Great Subang I will call it as an emerged comer to on the run with Mid Valley, Bangsar South and One Utama.

Developer
We have reviewed Titijaya group few times in this section. Indeed, till now I would maintain they are star of the “new kids on the block”. Though is not blue chip but they have delivered all their projects. As commercial offices in Malaysia is not govern by law like residential by the ministry of Malaysia, thus a developer that deliver is important. Even a slow down in local economy due to US subprime loan crisis and sky rocket commodities price will be still manageable if it is a good and discipline developer.

Special
After visiting to the sales office and also personally to the site, the key points are the population and the surrounding environment can be a differentiator for this project. As it is not a Class A commercial office, I do not expect rental return like KL Sentral or KLCC. However, it will be the best office space after Class A type due to its design and facilities like CCTV, combination of retail where Jusco has confirmed to move in as an anchor tenant of the project, technology ready for today modern office requirements, lifestyle design and most important, it is not just for Corporate users but can be also retail office to an extend given all factors above. So your tenant target range is wider.

Against
I am quite concern about the parking space even there are few level covered car parks in this project. But given Jusco is the key tenant in this project, half of the block is office and the other half is studio. Be prepared to plan for your parking bay before you move it because this is a classic problem in Malaysia where office with an average of 1000 sf can accommodates 20 people working in it.

Conclusion
With an average of RM 380 per sf and a maintenance fee of RM 0.55 per sf, the monthly rental to beat covering a reasonable yield is around RM 2.30 to RM 2.50 per sf. Since the project still need around 2 years estimated to be finished, by time, if local economy still grows at 5% above in the coming two years, I expect the rental yield can reach RM 3.00 per sf affordably by many businesses and that will be a handsome gain for the project. In term of pricing, some neighboring offices and new projects already calling price above RM 420 average per sf. Thus, a 15% gain upon completion is easily achievable. Though not a 5 star's project but it is good enough to be a "not to be missed" project for your portfolio.