UEM Sunrise share rises to 97 sen on acquisition news
Bernama
August 4, 2015 13:58 MYT
August 4, 2015 13:58 MYT
It was reported that UEM Sunrise recently completed the third acquisition in Melbourne for RM161 million and has earmarked it for development into a luxury residential project.
The share price of UEM Sunrise Bhd edged up half-a-sen to 97 sen as of 12.17 am today on news of its third property acquisition in Melbourne.
In a note, Kenanga Research maintained a "market perform" call on the company with a target price of RM1.10 for the stock.
It was reported that UEM Sunrise recently completed the third acquisition in Melbourne for RM161 million and has earmarked it for development into a luxury residential project.
"We gather that 10 per cent of the land payment is due upon signing, 10 per cent by year-end and the balance is due in mid-2016.
"The group is also actively trying to reduce its dependency of Johor and move towards the Klang Valley and other property corridors in Malaysia," Kenanga Research said.
The research house said it is neutral to slightly positive on the Australian venture which has a gross development value of RM666 million.
In 2015, sales for UEM Sunrise will be largely driven by Australia, while the group has lined up some new launches in Johor and the Klang Valley in the next two quarters.