Malaysia - Sunway’s Rm30bil Iskandar Development To Include Multiple Commercial Components
March 28, 2013
Sunway Bhd aims to develop multiple mixed-use components on its Rm 30 billion landbank in Iskandar.
PETALING JAYA: The 1,770 acres with a gross development value (GDV) of RM30bil Sunway Bhd owns in the Iskandar region and its plan to pay out dividends semi-annually are deemed as catalysts to its re-rating, UOB KayHian Research says.
In a report, the research house revised Sunway’s target price to RM3.48 from RM2.98 as it removed the 10% discount to sum-of-the-parts.
UOB KayHian said the proposal indicated that the company was in a favourable cash position despite possibly needing high capital expenditure for its development in Iskandar.
The research unit also said Sunway Iskandar’s masterplan included interesting “township components” such as Education Park, Eco Theme Park, Lifestyle Malls, Medical Park, Business Park and an Eco Marina.
“We believe the re-rating will continue as the Iskandar theme has only ‘warmed up’. We expect positive sales response from their maiden launch of Sunway Iskandar in the fourth quarter of 2013,” UOB KayHian said.
– Star Property
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