RHB Research said with the latest green light from the government to go ahead with the MRT2 project, IOIPG emerges as the key beneficiary.
Based on information provided by Gamuda Bhd, MRT2 will run from the Sungai Buloh depot to Putrajaya, and the proposed stops include Kepong, Sentul, KLCC, Cheras Sentral, Serdang, Uniten and Precinct 14 Putrajaya.
“IOIPG’s IOI City Mall will likely be a valuable asset. With this MRT line, the GDV for its landbank in Putrajaya will likely rise further,” RHB Research said in a note yesterday.
The research house is maintaining its “buy” rating on IOIPG, with a target price at RM3.38, at a 30 per cent discount to its revalued net asset valuation (RNAV).
The IOI City Mall, with a Net Lettable Area (NLA) of 1.4 million sq ft, will have its soft opening this month. About 90 per cent of the retail space has been leased and key anchor tenants include Parkson, Tesco Premium, HomePro and Index Living by Aeon.
“Our checks reveal that Phase 2 of the mall, which will be constructed at a later stage, will have a NLA of 900,000 sq ft. Phase 2 will be at a close proximity to Universiti Tenaga Nasional (Uniten) and the proposed Uniten MRT station could potentially be located there.
“If this materialises, the IOI City Mall will likely see long-term value appreciation, which would spur IOIPG’s RNAV re-rating.
“We expect the future GDV (currently at RM3.1 billion) of the remaining Putrajaya land to expand, given the boost from this latest infrastructure development,” RHB said.
Source : NST Online
1 NOVEMBER 2014 @ 12:41 AM