Sime Darby Property (SDPR) announced that it has acquired a strategic land in Kulai for RM418.5m. The freehold land, measuring approximately 556.96 acres within the Johor-Singapore Special Economic Zone would strengthen the Group’s strategic landbank and footprint in Johor.
“We understand that the site is earmarked for a sustainable township development with an estimated Gross Development Value (GDV) of approximately RM3bn.
Sime Darby Property
“With land cost at about 14% of GDV, we believe that the Group is paying a fair price for the new landbank. This land deal is also consistent with the Group’s SHIFT32 strategy, expanding the Group’s earnings base in Johor and supporting its long-term portfolio expansion.
“All told, we keep our earnings estimates and maintain our Outperform call, with TP unchanged at RM1.55, valuing the stock at near-parity to its book value, given its strong sales momentum and improving earnings quality,” says PIB.
Leave a Reply
You must be logged in to post a comment.