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SG S'pore developer ventures into KL

Property Here - Thursday, July 11, 2013

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Property developer Roxy-Pacific Holdings has made its first foray into Kuala Lumpur, Malaysia with the acquisition of a 47 percent stake in Macly Equity (Macly) for RM470,000 (S$186,805), according to OCBC Investment Research.

Macly owns a 70,000 sq ft site with a gross floor area (GFA) of 686,000 sq ft at Jalan Dewan Sultan Sulaiman in the city, located near the upcoming Quill City mixed development. According to the report, Roxy-Pacific is finalising a joint venture agreement “whereby it would likely fund the remaining commitment via a shareholder loan with the site valued at cost”. 

“The site has already received a development order and would likely be developed into a project with a 90:10 mix of residential and retail components,” OCBC said. “We see the project launching for sale by end 2014 with a targeted TOP of 2019.”

Meanwhile, OCBC maintained its BUY rating with higher S$0.76 fair value for Roxy-Pacific with the latest acquisition.

“We see the stock as a compelling risk-reward proposition currently as the group now sits on a whopping S$1,118m of unrecognised development revenue from sold units and enjoys significant diversification from its hotel segment - Grand Roxy Mercure Hotel worth S$0.47 per share.”



Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg