OSK Research which was slightly surprised by the acquisition said it was in line with the view that property developers would eventually have to move further out of the Klang Valley to acquire a sizeable landbank for township development.
"SP Setia's plan to develop the site into an upscale mixed residential township with a Gross Development Value (GDV) of RM4 billion and its close proximity to the previous acquisition of land in Beranang, will enable the company to reap economies of scale on infrastructure spending while optimising amenities enhancement," it said in a research note today.
Echoing the same view, ECMLibra Investment research said the acquisition would increase the company's remaining GDV to RM57 billion (previously RM53 billion), of which its effective share was RM47.4 billion.
"This will keep the company busy for more than 10 years and due to the proximity of the two parcels of land, SP Setia will also be able to reap cost synergies," it added.
ECMLibra Investment's view was further underpinned by an expectation of a cyclical slowdown in the property sector amid deteriorating macroeconomic conditions.
By Bernama
Posts
No comments:
Post a Comment