KUCHING: Eastern & Oriental Bhd (E&O) is on track to obtain the approval from the Penang state government in the second quarter of 2014 for the commencement of reclamation works on the Seri Tanjung Pinang 2 (STP2) project which is expected to begin construction in the second half of this year.
AmResearch Sdn Bhd (AmResearch) in a report said the STP2 project remains a key catalyst for the property developer given the potential of tripling its net asset value (NAV) and deep development potential of the 760 acre of prime land located opposite the highly successful STP1.
The research firm’s analyst Tan Ee Zhio said “We are positive that STP2 will do well, underpinned by scarcity of land, the strong establishment of STP1 and improved accessibility (for instance, second Penang bridge).
“The launch of STP2 could happen earliest in end of 2016, two years after the commencement of reclamation,” Tan said.
Following a company’s visit, the research firm is upbeat about the STP2 project which is in the final stages of crystallisation.
The research firm noted that E&O is currently conducting a last round check on the feedback for the detailed environment impact assessment (DEIA) study for the project.
On another note, AmResearch said the launches of E&O other property projects are also on track.
It said the balloting for phase one of E&O’s Avira Wellness project in Medini, Johor which consists of 208 terrace units is earmarked in April with indicative prices of more than RM600 per square feet.
The research firm believed that the project would receive strong demand given its landed property status and more Singaporeans who are coming to Johor to purchase landed houses as well as its close location to Pinewood Studio.
Additionally, AmResearch observed that its property development in London, Princess House, an apartment located in central London had achieved 70 per cent take-up rate for its residential units.
Besides that, the research firm said E&O is also in talks to sell the remaining 34 units of serviced apartments en-bloc in London to institutional buyers.
Therefore, AmResearch believed that the earnings of the company would continue to grow supported by sales from its on-going property development projects.