Iskandar

Iskandar: Rowsley, Albedo gaining interest with their Iskandar exposure. Deutsche visited China developer Country Garden’s property sales gallery at Danga Bay, Iskandar. Notes the carnival-like atmosphere at the launch, with bus loads of Mainland Chinese tourists ferried across from Singapore. Property investors crowded the sales gallery and its seven show units. ~ 53% of 9,400 units has been booked/sold since soft launch in May and official launched on Aug 11. Country Garden’s sales office indicated that Mainland Chinese, brought in by customized tour groups, accounted for c. 40% of total bookings so far; the rest being equally split between S’poreans and locals. Net ASP is about RM750- 1100psf, i.e., c. 15-20% cheaper than neighboring development, the Capri by Tropicana. Deutsche’s key picks for Iskandar are Msia stocks UEM Sunrise and SP Setia, both trading at 42% discount to FY14e RNAV.