PETALING JAYA: Gamuda Bhd
’s latest site acqusition in London is not expected to contribute materially to its near-term earnings and valuations, according to Maybank Investment Bank Research (Maybank IB).
This, together with the group’s other Purpose-Built Student Accommodation or PBSA projects, with a total gross development value of RM1.9bil, could go a long way in moderating Malaysian property sales, it added.
Targeted for completion in 2028/29, the development is located near University College London’s East campus and London College of Fashion, with a combined student population of more than 10,000.
It is also close to Westfield Stratford, London’s largest shopping mall, Maybank IB noted.
The research house also noted that this project forms part of Gamuda’s plan to deliver up to 3,000 student beds across UK cities in the next five years.
Including this project, Gamuda’s UK PBSA portfolio comprises 1,232 beds across three sites.
From London and Glasgow where it is present, Gamuda is targeting to expand to Bristol, Edinburgh, Manchester, Birmingham and Leeds, which have large international student populations, Maybank IB said.
It pointed out that the group stated that the PBSA sector is counter recessionary and demand is strong (2.7 full time students per PBSA bed).
“Upon completion, Gamuda may retain the PBSA for recurring income or sell it.”
Gamuda said the acquisition price was not disclosed but the project would accrete only RM67.5mil or one sen per share to group earnings, according to Maybank IB.
