Skip to main content

The Little Bull Terrier Again

Will resume trading tomorrow, the important points in Ekovest's proposal:

a) a market valuation of RM2.0bn by Chesterton
b) a discount of 28% on the purchase consideration


Considering that there is another caveat that the SC will have to OK the independent valuation as well. The SC's valuation cannot be more than 15% lower than the RM2.0bn figure. The 240 acres will be developed as part of the Master Plan for Danga Bay land as follow: 48 acres Financial Center; 70 acres Villa Precinct; 57 acres Commercial Center; and 65 acres for Promenade. Based on the proposal, development period will be over 15 years with a GDV of RM19.2bn. Of the 240 acres, approvals from Majlis Bandaraya JB has been obtained for 176 acres of development.

Key point is the RM2.0bn valuation, which can be said to be very conservative considering it has to be approved by SC at the end of the day. That makes for a very rough RM105psf for the waterfront property. Now, of course we are talking of the super prime landbank, but the repercussions are substantial for the following companies with super-prime landbank in similar locations:


Super-prime (within 10km radius from causeway)
Danga Bay 1,380 acres

Tebrau 1,012 acres

KPRJ 1,148 acres
UEM World 15,000 acres


Then there are those within the radius but no water frontage:

Gamuda 1,200 acres
Mulpha 800 acres

Khazanah 1,00 acres


The proposed valuations should set off feverish negotiations for more deals. The valuation of RM105psf compares very favourably to the rising interest as the previous transaction was the RM65psf which AEON paid back in February for a parcel in Nusajaya - mind you this parcel is quite inferior compared to Danga Bay. Can expect reports revaluing the related companies, plus you will see more foreign companies signing off on actual deals to buy property and/or land in IDR. Once more and more benchmarks have been set, the rest just falls into place.

Comments

Ali BAba said…
Halo Dali,
China Comunication Construction C 0509c1 trading at such a cheap! valuation. buy! wa ba da bi do.
Ali BAba said…
attention all red indian!

buy cccc! to 45
cin said…
Hi Dali

What about Tebrau? Any catalyst/s?
Salvatore_Dali said…
tebrau's catalysts are the same for all IDR related counters ... as explained before, the injection of Danga Bay into Ekovest is the first step, followed by the revelation of concrete details in Kota Selat (which includes Tebrau and Danga Bay) ... as more concrete deals and information are announced there will be more jvs and foreign companies announcing their participation, these are all progressive catalysts
Jomaropol said…
Hi Dali, new benchmark pricing for land in the IDR will be unveilled by govt vey soon.

Popular posts from this blog

My Master, A National Treasure

REPOST:  Its been more than two years since I posted on my sifu. This is probably the most significant posting I had done thus far that does not involve business or politics. My circle of close friends and business colleagues have benefited significantly from his treatment.


My Master, Dr. Law Chin Han (from my iPhone)

Where shall I start? OK, just based on real life experiences of those who are close to me. The entire Tong family (Bukit Kiara Properties) absolutely swear that he is the master of masters when it comes to acupuncture (and dentistry as well). To me, you can probably find many great dentists, but to find a real Master in acupuncture, thats a whole different ballgame.


I am not big aficionado of Chinese medicine or acupuncture initially. I guess you have to go through the whole shebang to appreciate the real life changing effects from a master.


My business partner and very close friend went to him after 15 years of persistent gout problem, he will get his heavy attacks at least…

PUC - An Assessment

PUC has tried to reinvent itself following the untimely passing of its founder last year. His younger brother, who was highly successful in his own right, was running Pictureworks in a number of countries in Asia.

The Shares Price Rise & Possible Catalysts

Share price has broken its all time high comfortably. The rise has been steady and not at all volatile, accompanied by steady volume, which would indicate longer term investors and some funds already accumulating nd not selling back to the market.


Potential Catalyst #1

The just launched Presto app. Tried it and went to the briefing. Its a game changer for PUC for sure. They have already indicated that the e-wallet will be launched only in 1Q2018. Now what is Presto, why Presto. Its very much like Lazada or eBay or Alibaba. Lazada is a platform for retailers to sell, full stop. eBay is more for the personal one man operations. Alibaba is more for wholesalers and distributors.

Presto links retailers/f&b/services originators with en…

How Long Will The Bull Lasts For Malaysia

Are we in a bull run? Of course we are. Not to labour the point but I highlighted the start of the bull run back in January this year... and got a lot of naysayers but never mind:






























p/s: needless to say, this is Jing Tian ... beautiful face and a certain kind of freshness in her looks and acting career thus far



http://malaysiafinance.blogspot.my/2016/12/bank-negara-may-have-switched-on-bull.html


I would like to extend my prediction that the bull run for Bursa stocks should continue to run well till the end of the year. What we are seeing for the past 3 weeks was a general lull where volume suddenly shrunk but the general trend is still intact. My reasons for saying so:

a) the overall equity markets globally will be supported by a benign recovery complemented by a timid approach to raising rates by most central banks

b) thanks to a drastic bear run for most commodities, and to a lesser extent some oil & gas players, the undertone for "cost of materials" have been weak and has pr…