Wednesday, March 27, 2013

Afternoon Highlight (22/03//13/47/745) Glomac’s RM350mil price for mall exceeds market estimates


Glomac’s RM350mil price for mall exceeds market estimates

PETALING JAYA: Glomac Bhd's en bloc sale of its retail mall in Glomac Damansara for a potential RM350mil is higher than market estimates, but the property developer is buoyed by how well-received the mixed and commercial development has been.

Analysts have cited landed projects and the residential units of Glomac Damansara as a major factor for the developer's improved earnings for its 2013 nine-month period.

The retail mall is the final phase of the development, which is now 92% sold.

Hong Leong Investment Bank said in a report that it had earlier mentioned that it had expected the en bloc sale for the final phase, i.e. the retail mall, but with only a targeted value of RM50mil.

“Glomac has announced its intention to put up the retail mall for a potential en bloc sale of RM350mil, much higher than our initial estimate,” analyst Sean Lim said.

The research house added that the nine-month sales figure came in at RM519mil, 51% higher year-on-year, “thanks to strong uptake of its landed projects and the residential units of Glomac Damansara”.

“Note that the nine-month sales figure had yet to include Phase 3 of its flagship Lakeside Residences@Puchong with a gross development value of RM107mil, now 90% sold with remaining units being bumi lots,” Lim added.
RHB Research analyst Loong Kok Wen, meanwhile, told StarBiz that there had been no indication as to who the potential buyers were, although Glomac had stated that negotiations were ongoing.

“I believe it boils down to a matter of pricing. Glomac wanted to sell higher because the development was doing well,” she said, comparing it with Glomac Centro, which “was a bit low on the sales side”.

However, her outlook for the company is positive as Glomac has been able to deliver on its projects.

“The group has managed to replenish its unbilled sales and its Puchong townships are also doing well,” she said.

She added that the only reason she gave a “neutral” call on the developer was the impending general election.

Source: The Star
Date : 22 March 2013

Afternoon Highlight (22/03//13/47/745)

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