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Wednesday, January 27, 2010

Sunrise to replicate success in Bkt Jelutong

The joint venture (JV) between Sime Darby and the Sunrise Group for an integrated commercial development on a 21-acre site in Bukit Jelutong is expected to be positive.

This is because it allows Sunrise to replicate its success in developing Mont Kiara in another prime location, says ECMLibra Investment.

"We believe there is a captive market for the product offerings proposed by the JV," said ECMLibra Investment in its research note today.

The research house also expects earnings contribution for the Sunrise Group from the project, slated to begin in 2014.
Sunrise announced yesterday that it had entered into a 50:50 JV with Sime Darby to develop the land in Bukit Jelutong.

The JV will acquire the land from Sime Darby for RM114.1 million cash.

Based on the initial GDV and assumed net margin of 18 per cent, the share of net earnings for Sunrise will be RM90 million over the development period, ECMLibra Investment noted.

It added that, although the initial estimate GDV is RM1 billion, the figure is believed to be conservative.

Meanwhile OSK Research Sdn Bhd, in commenting on the JV, said it would likely be a significant driver for the earnings of Sunrise, going forward.

By Bernama

1 comment:

Daddy Monster said...

In my opinion, this is great for investment especially for people already staying in Bukit Jelutong. Easier to collect rental and manage the property. I am saying this because I am staying nearby and I am selling a service apartment project next to this Sunrise Project.I believe they will help up-scaling our project. My word to the resident in Jelutong,'Just embrace the enhancement and modernization of your township, sit back and watch the price of your property go skyrocket!'