KUCHING: Sunway Bhd (Sunway) announced that its subsidiary, Sunway Iskandar Sdn Bhd (SISB), has entered into a Joint Venture (JV) with Daiwa House Malaysia Sdn Bhd (Daiwa).
MIDF Amanah Investment Bank Bhd’s research arm (MIDF Research) noted that the purpose of the JV is to develop 100 landed properties comprising bungalows, semidetached and cluster homes in a gated and guarded community with its own facilities.
The gross development value (GDV) of the project is RM210 million with expected launch date in early-2016.
“Note that the 13.02 acres is part of the 691 acres of land currently owned by SISB. Effectively, this will translate into valuation of RM111.20 per square foot (sqft).
“We believe that the price is fair as it is close to both our estimate of RM114 per sqft in our RNAV, and the offer price of RM120 per sqft for the area,” said the research house.
The project is expected to increase Sunway FY16 earnings by RM5 million to RM595 million.
“The contribution to Sunway at the Group level is small as its effective stake in Daiwa JV is only 16.8 per cent. We maintain our FY15 earnings as the project will only be launched in early-2016.
“The amount should be in the range of 22.0 sen to 25.0 sen subject to the actual amount of proceeds to be raised from the Proposed Offer For Sale of Sunway Construction Group (SCG) shares,” it said.
“We gather that Daiwa will introduce prefabricated housing technology for the development. It is notable that Daiwa has completed a prefabricated house prototype in Sunway Eastwood last year.”
Daiwa is a pioneer of prefabricated housing in Japan and has produced more than 550,000 homes since 1959.
Daiwa is capable of producing 10,000 units of prefabricated housing annually. Lastly, Daiwa is expected to introduce Japanese community into Sunway Iskandar.