MCL

MCL recently launched its freehold D’Mira on Boon Teck Road in Central Singapore and we understand that about 30% of the 65 units have been sold at about $1,000 psf as we expected. Via the GLS Programme, MCL acquired a 3ha site at Hougang Ave 2 for $456 psf ppr. The site has a GFA of 455,037 sq ft, and assuming a $280 psf cost of construction, breakeven is around $780 psf. MCL intends to build a 450-500 unit condominium on the site.

Based on our assumed ASP of $900 psf, we expect a 10 cent/share accretion to the RNAV. After its latest acquisition, MCL’s landbank now stands at about 1m sq ft in GFA, comprising five unlaunched sites. With attractive en-bloc acquisitions hard to come by these days, MCL has put its cash to work with its latest acquisition, while at the same time, replenishing its depleting landbank. The stock is trading at an attractive 0.8x P/B and an FY10F dividend yield of 7%.