Minister of International Trade and Industry Datuk Seri Mustapa Mohamed and Singapore’s Minister for Trade and Industry Lim Hng Kiang (third right) looks on at a replica of the Nusajaya Tech Park project on Thursday. — Bernama photo
KUCHING: UEM Sunrise Bhd’s upcoming industrial property development in Johor, Nusajaya Tech Park (NTP) will become a growth catalyst for the company’s earnings.
The research arm of Kenanga Investment Bank Bhd (Kenanga Research) in a report said NTP which is targeted at end users will ensure that the technology park is occupied once the entire development is fully completed in the next nine years.
The research firm believed that with more economic drivers in the Nusajaya area, the development will draw more businesses and people to the tech park.
Upon completion of the whole project, NTP is expected to have some 200 enterprises and a workforce of 20,000 people.
Kenanga Research added the industrial park is the first Malaysian tech park to be awarded world recognised award.
The research firm pointed out that the park is differentiated by its environmental friendly features with commercial content to cater to the community there.
It observed that NTP will be targeted for light to medium industries with emphasis on precision engineering, electronics, light and clean manufacturing and warehouse/logistics.
The project will be managed by Singapore’s Ascendas Pte Ltd to ensure that the township development is maintained well.
On another note, Kenanga Research said during the groundbreaking ceremony for NTP recently, the developer of the tech park had also signed several Memorandum of Understandings (MoUs) with other companies among them are Sanwa Group of Companies from Japan for integrated logistics and supply chain, YCH Group Pte Ltd from Singapore for information, communication and technology (ICT) and business process outsourcing service provider as well as VADS Bhd for a data centre.
Apart from that, the research firm said phase one of UEM Sunrise’s other property development Emerald Bay @ Puteri Harbour, a 60:40 per cent joint venture with Bandar Raya Development Bhd has achieved a take-up rate of more than 80 per cent despite being priced at a premium.
Kenanga Research observed that the project which has a total gross development of RM4 billion will be developed over eight to 10 years period has received overwhelming response without any official launch since their soft opening.
Hence, given the encouraging feedback for UEM Sunrise’s property development, Kenanga Research has maintained its bullish outlook for the company’s earnings growth.