Share
Joint venture development
Highlights:
? Outperform: We maintain our Outperform recommendation with the target price at RM2.20, a slight discount to our RNAV per share of RM2.27 per share. We are positive on MSGB’s new JV development in view of (1) substantial cost and time savings from the JV and also a quick turnaround is envisaged following the completion of major infrastructure work by the land owner; (2) JV Land comes with already 5 3 S&P agreements concluded between the Landowner and existing purchasers, amounting to about RM29mn with bookings for further 27 units; (3) Low cost and open spaces requirement being undertaken by the Landowner; (4) The JV land is located in the vicinity of an establish neighborhood with significant population catchment
? JV development of residential land: The JV Land comprise a total of 180 vacant of 2 and 2 ½ storey terrace house lots with an aggregate estimated gross land area of about 13.2 acres. The Landowner has commenced development on the JV Land focusing on the main infrastructure work like the main drain, reservoir, sewerage treatment plant and TNB sub stations completed. The main access road leading to the JV Land is also completed. 8 units of 2 and 2 ½ storey terrace houses are completed as show houses. The JV Land has been cleared and level and is ready for immediate building construction. We believe the acquisition price of RM35.4mn as fair after factoring in the main infrastructure cost.
? JV land part of on-going development: The JV land acquired is part of the 274 acres of the on-going residential development known as Taman Damai Utama. The development currently comprise of 600 units of 2 and 2 ½ storey terrace house which is has been fully taken-up and handed over to the buyers. The commercial portion of more than 100 units of terrace houses has been fully taken-up, except for the bumiputra units. We believe Mah Sing’s plan to replicate their successful Residence series of homes in Selayang (Perdana Residence), Cyberjaya (Garden
Residence) and Kemuning (Kemuning Residence), which are gated and guarded residential development would compliment as well as cater for the demand of up market properties in the locality.
? Accessibility not an issue: The JV Land is accessible via an integrated network of trunk roads and highways comprising Jalan Kinrara, Persiaran Puncak Jalil, LDP, NPE, NKVE, KESAS and Old Klang Road. Established developments of Puchong, Bukit Jalil, Sri Petaling, Taman Desa, Kuchai Lama, Seri Kembangan, Sunway and Subang Jaya provide the proposed development with ready catchments. Amenities include private specialist hospitals such as the Columbia Asia Hospital Puchong and Sunway Medical Centre. Hypermarkets such as Tesco, Giant, Jaya Jusco and shopping complexes including IOI Mall, Endah Parade, Sunway Pyramid,Empire Gallery, Subang Parade and Summit Subang are also easily accessible.
Highlights:
? Outperform: We maintain our Outperform recommendation with the target price at RM2.20, a slight discount to our RNAV per share of RM2.27 per share. We are positive on MSGB’s new JV development in view of (1) substantial cost and time savings from the JV and also a quick turnaround is envisaged following the completion of major infrastructure work by the land owner; (2) JV Land comes with already 5 3 S&P agreements concluded between the Landowner and existing purchasers, amounting to about RM29mn with bookings for further 27 units; (3) Low cost and open spaces requirement being undertaken by the Landowner; (4) The JV land is located in the vicinity of an establish neighborhood with significant population catchment? JV development of residential land: The JV Land comprise a total of 180 vacant of 2 and 2 ½ storey terrace house lots with an aggregate estimated gross land area of about 13.2 acres. The Landowner has commenced development on the JV Land focusing on the main infrastructure work like the main drain, reservoir, sewerage treatment plant and TNB sub stations completed. The main access road leading to the JV Land is also completed. 8 units of 2 and 2 ½ storey terrace houses are completed as show houses. The JV Land has been cleared and level and is ready for immediate building construction. We believe the acquisition price of RM35.4mn as fair after factoring in the main infrastructure cost.
? JV land part of on-going development: The JV land acquired is part of the 274 acres of the on-going residential development known as Taman Damai Utama. The development currently comprise of 600 units of 2 and 2 ½ storey terrace house which is has been fully taken-up and handed over to the buyers. The commercial portion of more than 100 units of terrace houses has been fully taken-up, except for the bumiputra units. We believe Mah Sing’s plan to replicate their successful Residence series of homes in Selayang (Perdana Residence), Cyberjaya (Garden
Residence) and Kemuning (Kemuning Residence), which are gated and guarded residential development would compliment as well as cater for the demand of up market properties in the locality.
? Accessibility not an issue: The JV Land is accessible via an integrated network of trunk roads and highways comprising Jalan Kinrara, Persiaran Puncak Jalil, LDP, NPE, NKVE, KESAS and Old Klang Road. Established developments of Puchong, Bukit Jalil, Sri Petaling, Taman Desa, Kuchai Lama, Seri Kembangan, Sunway and Subang Jaya provide the proposed development with ready catchments. Amenities include private specialist hospitals such as the Columbia Asia Hospital Puchong and Sunway Medical Centre. Hypermarkets such as Tesco, Giant, Jaya Jusco and shopping complexes including IOI Mall, Endah Parade, Sunway Pyramid,Empire Gallery, Subang Parade and Summit Subang are also easily accessible.
SHARE
TOP PICKS BY EDGEPROP
RENT
FEATURED
Bandar Baru Sri Petaling
Bandar Baru Sri Petaling, Kuala Lumpur
RM 4,000
- beds |
2 bath |
2000 sqft
hero.jpg?GPem8xdIFjEDnmfAHjnS.4wbzvW8BrWw)
