Wednesday, October 24, 2012
A-Reit: UEM Land has entered into a 40/ 60 JV with Ascendas Group to develop a 519 acre freehold integrated eco-friendly tech park in Gerbang Nusajaya (total land area of 4500 acres), within the Nusajaya regional city in Iskandar Msia. The devt has a projected invmt value of RM 3.7b. Citi notes this could be long term beneficial for A-Reit, whose sponsor is Ascendas, as it not only provides a potential asset pipeline but also aids in A-Reit’s ability to evolve alongside the potential growth of Singapore industrialists’ footprint and allowing it to cater to the industrial needs of user across the entire value chain. Citi has a Buy rating with TP $2.68 on A-Reit, after its 1H12 results last wk came in within expectations.