The investment bank said in a report that with the completion of the land parcels, the property developer will have a landbank of 6,800 acres, the bulk of which will be waterfront land facing Singapore, as well as the 500-acre Bandar Malaysia stake in Kuala Lumpur.
PETALING JAYA: Buy Iskandar Waterfront City Bhd (IWC) as a long-term proxy for the appreciation of central business district land in Johor Baru and Kuala Lumpur, said Credit Suisse.
The investment bank said in a report that with the completion of the land parcels, the property developer will have a landbank of 6,800 acres, the bulk of which will be waterfront land facing Singapore, as well as the 500-acre Bandar Malaysia stake in Kuala Lumpur.
It can be argued that once completed, it will be in the books at a fraction of the market price,” it noted, adding that IWC’s potential acquisition of two parcels of land in Johor Baru city centre will see the company emerging as an unleveraged land holding company.
Iskandar Waterfront Holdings Sdn Bhd (IWH), the master developer of the 4,300-acre Danga Bay waterfront in Johor, has a 38.3% stake in IWC.
Tan Sri Lim Kang Hoo has a 70% stake in IWH via Credence Resources Sdn Bhd.
The investment bank said IWC, with the backing of the new-look IWH, offers investors a longer-term and safer property play.
It noted that Bandar Malaysia will be the terminus for the Kuala Lumpur–Singapore high-speed rail (HSR).
Earlier in March, IWH had offered to buy IWC in a “back-door” listing of one of the country’s biggest property firms.
IWH had offered to pay RM1.50 for each IWC share, valuing IWC at RM1.24bil based on the number of outstanding shares.
Credit Suisse said besides the HSR, Bandar Malaysia will also be a connecting point for the Express Rail Link with plans also for interchanges for the mass rapid transit (MRT) Lines 2 and 3, together with a connection for the monorail.
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