OSK Research Sdn Bhd maintains "trading buy call" on Bandar Raya Developments Bhd following its involvement in Puteri Harbour Project in Nusajaya and several property launches.
Bandar Raya is replacing Limitless Holdings Pte Ltd as UEM Land Holdings Bhd's majority partner in the 111 acres (44.4 hectares) development of "Residential North" of the Puteri Harbour in Nusajaya, Johor.
It will buy Limitless' 60 per cent stake in Haute Property Sdn Bhd, a joint- venture company, which has been granted development rights by UEM Land to develop properties for RM75 million.
"As the project is still at a preliminary stage and there are yet to be any details on the launches, we are not imputing its prospects into our earnings forecast and valuation for the time being," it said in a research note today.
OSK Research said Bandar Raya would launch phase one of its Hartamas II mid-end condominiums worth RM300 million and CapSquare Condos Two projects valued at RM250 million in the second half of this year.
The company would also be launching its two prime luxury projects in Taman Duta and Bukit Bandaraya in early next year, it said.
"With these projects all lined up for launch in the second half of 2010, Bandar Raya is poised to ride high in the impending 2011 upcycle," it said.
OSK Research expects the property market to only start to warm up in the second half of this year before the 2011 upcycle.
Jupiter Securities said the proposed 60 per cent acquisition in Haute Property reflects Bandar Raya's focus on positioning the company in property development.
"Bandar Raya is attempting to re-establish its focus on Iskandar Malaysia," its research head Pong Teng Siew told Bernama. Bandar Raya owns large land bank at the Permas Jaya township development and the latest deal provides "a big boost to the company," he said. -- Bernama
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