Sime Darby's Elmina project
KUALA LUMPUR: CIMB Equities Research has valued Sime Darby Property
based on a 50% discount to its estimate of its realised net asset value (RNAV), translating into a target price of RM1.85. This is 31% above the last traded price of RM1.41.
It said on Monday the large discount versus an average of 35% for the other property stocks under its coverage is to reflect the slower monetisation and longer gestation period of its considerable land bank.
“Our valuation does not include the potential value enhancement from the additional land bank of 20,602 acres under the Malaysia Vision Valley (MVV) option agreements and land option agreements,” it said.
CIMB Research said it organised a full-day site tour for buy-side analysts and fund managers to Sime Property’s prominent townships located in Klang Valley.
They visited the sales galleries and sites of four projects -- the City of Elmina, Bandar Bukit Raja, The Glades Putra Heights, and LOT 15 Subang Jaya City Centre (SJCC).
City of Elmina is the biggest township in Sime Property's portfolio – City of Elmina. The project has a remaining developable area of 3,321 acres and remaining gross development value (GDV) of RM19.7bn.
"We believe that with the opening of the Elmina interchange, the upcoming Damansara-Shah Alam Elevated Expressway (DASH) and potential connectivity via mass rapid transit (MRT), this township will be able to benefit from the better connectivity and attract more buyers in the future," said CIMB Research.
Bandar Bukit Raja consists of two mixed development townships, namely BBR 1 (1,513 acres) and BBR 2 & 3 (2,820 acres). It is located 30 minutes away from Port Klang, making it an ideal hub for international freight and logistics activities.
Sime Property is also partnering with Japanese conglomerate Mitsui International to develop a high-technology build-to-suit (BTS) industrial park at BBR 2 & 3.
The Glades Putra Heights development spans across 58 acres of land, with a remaining developable area of 17 acres. The Subang Alam LRT station, the nearest LRT station to the project, is just 10 minutes’ walk away.
The Glades is launching 15 units of strata bungalow (RM70m GDV) and 72 units of strata condo (RM83m GDV) in 2018.
LOT 15 SJCC is a serviced apartment project that consists of two towers with a total 361 residential units and three levels of retail units.
The development covers an area of 2.2 acres, with a total GDV of RM269.2m. Within two days of its official public launch on Nov 18-19 2017, the project achieved a strong 64% take-up rate for the 204 residential units offered for sale.
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