KUALA LUMPUR: Analysts are generally positive on Sunway Bhd’s property arm, Sunway Property Bhd’s latest acquisition of 245 acres of freehold industrial land in Kuang, Rawang for RM115mil.
Sunway will build industrial and commercial properties with a gross development value (GDV) of at least RM2bil across the 245 acres of prime freehold land in Rawang.
“We are positive on the acquisition given the strategic location of the land with good connectivity to KLIA and Port Klang, fair acquisition price, attractive industrial segment benefiting from strong foreign direct investment (FDI) flow trend, and the venture allows the group to diversify its revenue stream,” said Hong Leong Investment Bank (HLIB) Research.
The research house deems the acquisition price to be fair. The land cost is RM115mil, implying a land cost-to-GDV of 5.8%.
However, it noted that the land is agricultural land and as such, Sunway will have to convert the land from agricultural to industrial.
Source : TheStar