Keppel Land: to unlock value from its Barclays House complex in Jakarta’s CBD through partial redevelopment. The existing 10-storey building may be redeveloped into a 40-storey tower with max gfa of ~600k sqft. Project expected to be completed by early 2014, at est cost of ~S$95m. Mgt positive on office demand in Indonesia, notes Jones Lang LaSalle’s buoyant forecast for strong take up in Jakarta’s CBD of >200k sqm pa in 2011, spurred by strong expectations of Indonesia’s growth prospects…
Latest KE update maintains Buy with $4.82 target, pegged to 1.1x RNAV. Believes valuations still attractive, as does not expect KLand to be significantly impacted by latest round of property cooling measures, given its geographically diversified land bank, and office exposure (~45% of gross asset value).
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