CityDev

CityDev: According to Malaysia's Business Times, Citydev is in talks to sell a parcel of land in Jalan Bukit Bintang, KL, which could possibly fetch a record price for a land deal. It is understood that the selling price for the land is being negotiated for more than RM3,000 (S$1,282) per sq ft. The deal could possibly fetch RM96m (at RM3,000 per sq ft) given that CDL's land in Jalan Bukit Bintang is about 32,000 sq ft.

We understand the RM500m Millennium Residences project was originally planned for the site and launched in 2007 had been aborted and that the land was being negotiated for sale. Other contenders for the land are believed to be the owner of Pavilion Kuala Lumpur and the YTL group, both of which have sizeable assets along Jalan Bukit Bintang. We do not foresee material impact to our forecasts. Kim Eng still has a BUY with TP of $13.20, pegged at a 15% premium to its RNAV.