KSH

KSH: Announced that it has agreed to acquire, through an associated company, a 40% stake in a 679.5k sq ft site in Mukim Klang, Daerah Klang, Negeri Selangor. The total purchase consideration comes up to RM91.7m ($36.0m), of which KSH’s effective share is $14.4m. The site has a plot ratio of 1.5 and will likely be developed into a mixed development with hospitality, retail and SOHO components, forming part of a proposed business park in that area. Given a muted domestic residential outlook, OCBC understand the group would actively seek accretive opportunities in the region, in particular China and Malaysia, and are positive on management deploying capital in this manner if the acquisitions are optimally sized and alongside competent local partners. Pending more details and the completion of the acquisition (within 6 months), the house maintains its Buy call with its fair value estimate unchanged at $0.73.