Roxy Pacific

Roxy Pacific: OCBC maintains Buy with $0.76 TP. ROXY announced that it has acquired, for RM470k, a 47% stake in Macly Equity Sdn Bhd (Macly) which owns a 70k sf land site in Kuala Lumpur, Malaysia at Jalan Dewan Sultan Sulaiman. House understand this land site was acquired for RM89.8m by Macly and that ROXY is finalizing a JV agreement whereby it would likely fund the remaining commitment via a shareholder loan with the site valued at cost. This site has a total GFA of 686k sq ft and is strategically located beside the upcoming Quill City (a 7-acre mixed development on Jalan Sultan Ismail), the Sheraton Imperial Hotel and monorail Stations to Bukit Bintang. From house calculations, this acquisition would likely accrete 2.4 S-cents to ROXY’s RNAV. Maintain BUY with a higher fair value of $0.76 (30% RNAV disc.) from this acquisition, versus $0.74 previously.