UEM Land Holdings Bhd's stock rose in the early session of trading at Bursa Malaysia today as the company disposed two
parcels of land in Commercial North, Puteri Harbour, in Johor.

In an announcement to Bursa Malaysia yesterday, UEM Land said it had disposed the lands (CN1 and CN2) to Liberty Bridge Sdn Bhd for RM211 million and RM190 million, respectively.

As at 10.38 am, the share price of UEM Land gained two sen to RM2.16 after hovering between RM2.17 and RM2.11. A total of 1.698 million shares were traded.

The deals are expected to be completed within six to seven months, respectively. For CN1, the development of phase one has to commence within 24 months, whilst for CN2, the time limit is 36 months.

HwangDBS Vickers Research, in a note, said UEM Land stands to book a one-off gain of RM241 million in financial year 2013 as the deal was expected to be completed by December this year.

It said the proceeds would likely be utilised for UEM Land's projects in Commercial South and Private Marine precincts in Puteri Harbour.

"We maintain our earnings forecast at this juncture pending the completion of the proposed disposals. The deal may boost its financial year 2013 earnings by 57 per cent, taking into account the one-off gain," it said.

HwangDBS retained its target price at RM2.10 and maintained a "buy" call on UEM Land. UEM Land's unbilled sales remain healthy at RM1.9 billion.

Meanwhile, Hong Leong Investment Bank Bhd (HLIB) expects the bulk of land disposals in Nusajaya to be concentrated at Puteri Harbour.

"We believe it is part of UEM Land's plans to rope in desirable partners to help develop the future skyline of Puteri Harbour," it said.

HLIB said it did not rule out the possibility of more land disposals this year, which would serve as an effective means of spreading out the risk in the highly-priced Puteri Harbour. -- Bernama