KUCHING: Faber Group Bhd’s (Faber Group) indirect subsidiary, Faber Union Sdn Bhd, has obtained the approval from Dewan Bandaraya Kuala Lumpur to develop a 255-unit condominium on Jalan Gurney, Kuala Lumpur.
According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), the project Kondominium Faber Antara, is expected to be launched soon within this year, with an estimated gross development value of approximately RM203 million.
The development will comprise of two residential towers of 23-storeys built above 5-storey elevated car parks with a wide range of built-up area for each of the unit, ranging from 943 square feet (sq ft) to 3,500 sq ft.
The construction of the project is targeted to commence in June this year and is expected to be completed by May 2016.
“Although at the initial planning stage the development had received some objections from the surrounding residents, the developer has obtained the support from all the residents after a few dialogue sessions between them, with the company agreeing to meet the stipulated commitments,” MIDF Research said in a research note yesterday.
With an indicative selling price between RM0.5 million and RM1.9 million per unit, the development would be priced at between RM500 and RM550 per sq ft.
“We are of the opinion that this pricing is very reasonable, considering its location and the good reputation of Faber Group.
“Therefore, we expect the development to receive a highly encouraging response once it is officially launched,” the research house added.
Overall, the research arm believes that this new project will give a positive contribution to the company’s revenue and earnings for the next three years and also revive its property division.
As such, MIDF Research upgraded its recommendation to ‘buy’ and revised its target price to RM2.11 from RM1.67 previously, with the valuation derived from 14.5-fold price-earnings ratio of the group’s financial year 2014 forecast.