Iskandar

Iskandar: JPM notes eyes will be on the upcoming maiden launches in Iskandar by well known local developers, ie. Mah Sing, E&O and Sunway, which previously focused mainly in Klang Valley and Penang. i) upcoming launch of “Meridin” condo by Mah Sing, to be soft launched in May ’13, comprising 756 units with initial gross devt value (GDV) of RM535m, and priced at RM630-780 psf (close to pricing of RM 550-756 psf for UEM Land’s higher end East Ledang devt). Bookings for 'Meridin' have reached 27% for units opened to pre-selected VIPs over the last weekend before launch, and with a total of over 4,000 registrants. ii) Avira project by E&O in a JV with Temasek and Khazanah; to be soft launched sometime in 2Q13, starting with 458 units of terraced houses with pricing of close to RM1m per unit, where a total of 900 bookings have been received. iii) Sunway, the second largest land-owner in Iskandar after UEM Land, will also start to launch commercial components in Medini by late-2013, followed by landed residential units by 2014. iv) UEM Land recently announced the disposal of 12.5 acres of land at Puteri Harbor, Iskandar, for RM182m to a Kuok Brothers/ Khazanah JV, valuing the land at RM333 psf, or 12% above the RM297 psf for sea-fronting land in the area transacted recently in Jan ’13. The continued sales transactions at higher prices in Iskandar bodes well for Rowsley and CapitaLand, which have both announced major development projects in the region. Concerns over the upcoming Msia elections (polls 5 May) have resulted in a broader pullback in Msian stocks, though a number of houses have highlighted this could provide a window to buy on dips. Rowsley is +1.4% at $0.365, CapitaLand is +0.6% at $3.49.