A higher target price of RM1.80 from RM1.75 was after taking into account the additional 60 per cent stake which MRCB has bought in Lot 348 through the acquisition of Gapurna Sdn Bhd's stake in GSB Sentral Sdn Bhd for RM105 million.
OSK feels that the price is fair, as the land's market value is RM110 million and on-going developments at Lot 348 are more than 10 per cent completed.
It said that MRCB plans to keep this project with future plans, to inject it into a real estate investment trust.
Lot 348 is a mixed development with a total gross floor area of 1.47 million and an estimated gross development value of RM850 million.
With the Employees Provident Fund (EPF) holding more than 40 per cent stake, OSK said it is highly possible that MRCB will be turned into EPF's property arm to undertake the development of federal land, particularly for the development of the Rubber Research Institute land in Sungai Buloh, Selangor.
- by Business Times
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