- Maintain BUY on IJM Land with an unchanged fair value of RM3.90/share – a 10% discount to its NAV/share. We attended a corporate event hosted by IJM Land to showcase some of its existing as well as upcoming launches. The highlight was a preview of the much awaited Pantai Sentral Park, which is a JV between IJM Land and Amona Development Sdn Bhd.

- The integrated mixed-development project would be built on ~23.5 ha (58 acres) of leasehold land in Bukit Kerinchi. The entire project is expected to generate a total GDV of RM2.5bil over ten to 15 years, with a targeted population of ~15k residents.

- Phase 1 of Pantai Sentral Park, named Inwood Residences, would feature 211 units of residential condominiums that are scheduled for launch by end of the month. Earthworks have already started. We expect the indicative pricing for the condos to be around RM700psf. The built-up ranges from 1,140 sf to 1,974 sf (two-to-four- plus one bedrooms).

- We understand that initial response for Inwood Residences has been overwhelming, with ~15,000 preregistrants already signed up.

- Overall, we believe that Pantai Sentral Park is on track to deliver given by its strategic location, exciting greenthemed lifestyle features and future infrastructure boosters.

- In fact, Pantai Sentral Park represents one of the larger tracts of land near Bangsar with a view of a nearby 200-acre forest reserve. Future links would be built to connect the commercial precincts with the residential blocks.

- The development’s deep values would also be further lifted by future improvements to its infrastructure, including a RM50mil link to the New Pantai Expressway (NPE), owned by parent, IJM Corp. There could also be the possibility of a new MRT station at nearby Pantai Dalam.

- Likewise, we draw comfort that launch of Phase 3 of Bandar Rimbayu, Periwrinkle, which received overwhelming responses. Featuring cluster semi-detached (32”x70”) homes priced from ~RM875k, we understand that all 40% of the first block of units that were released were fully taken-up. We expect the remaining units of Periwinkle, due to be released by end-2H14, to be equally well received.

- We continue to like IJM Land for exposure to the property sector, backed by RM3bil worth of new prolific launches for FY15F. The stock’s sentiment has been further lifted by recent reports of fresh privatisation manoeuvres.

Source: AmeSecurities