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Wednesday, November 21, 2007

CIMB places 'buy' call on UM Land

United Malayan Land Bhd is set to hold a soft launch of its condominium project in Bangsar next month, which should receive strong demand, CIMB Securities said in a report.

The condos have a gross development value of RM175 million, a 77 per cent upward revision from an earlier plan.

There will be about 189 units averaging 1,600 sq ft each. UM Land is likely to offer a price of about RM500-RM550 psf, CIMB said.

"We envisage strong demand for the properties given the lack of supply in the area and the higher prices of RM700 psf upwards for recent launches," it said.

The company is set to launch two more condo projects next year.

The most important one is the RM744 million Jalan Mayang condo, an equal venture with Bolton Bhd, which is close to the Petronas Twin Towers.

"As prices in the vicinity have risen substantially in recent months, the originally targeted selling price of RM600-RM700 psf appears low.

Recent transactions in that area have fetched above RM1,000 psf. Ironically, the delay in the launch is working to UM Land's advantage, CIMB said.

It has a "buy call" on the stock with a target price of RM3.57. The stock closed unchanged at RM2.20 yesterday.

By New Straits Times

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