ISKANDAR

ISKANDAR: plenty of positive news flow appearing on Singapore and Malaysia media (TV, news papers, internet, etc) regarding the meeting of both countries’ top leaders this week. An evident warming of ties across the straits, and active discussions on cross border collaborations has catalyzed much interest in the Iskandar development. Recent discussions include, - two big projects at the Iskandar devt by Temasek, Khazanak worth RM 3b unveiled - CapitaLand, Iskandar Waterfront and Temasek in RM 811m Danga Bay venture in Iskandar - Plans for MRT linkage between Singapore and Johor - 90 min rail link from Singapore to KL Key beneficiaries from the Iskandar theme include, i) CapitaLand Strategic acquisition of a prime waterfront mixed devt site in Danga Banga, in partnership with Iskandar Waterfront and Temasek. The JV will acquire 3.1m sf of F/H net land in A2 island for a purchase px of RM 811m, and estimated gross developemtn value of $3.2b. Stakes will be 51%, 40% and 9% respectively. ii) Rowsley Rowsley is one of the few stocks with potential Iskandar exposure, through its proposed takeover of a Msian architect firm and Iskandar land acquisition via an issue of up to $581m in new shares (at issue price of $0.15/sh). Recall, the devt is slated for a $3b integrated mixed-use township comprising apts, malls, convention centres, yielding more than 10m sf of GFA. It has proposed 2-for-1 warrants with exercise px of $0.18/sh to existing shareholders. iii) IHH iv) Raffles Education v) UEM Land (Msia-listed)