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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