The resort is said to be 20 minutes from Klang via the Kesas Highway and 30 minutes from Subang and Puchong via SKVE, which was completed last year.
Super undervalued stock (fair value 3.06) to be explosived. Liquidity killing the price.
Motivation:
The group is unlocking the value of its massive landbank of 1,938 acres in Carey Island by developing it into an integrated township — Amverton Cove with a massive gross development value (GDV) of RM10 billion with planned launches of RM738 million from 2014 to 2018.
(http://www.freemalaysiatoday.com/category/business/2014/04/29/am-realty-to-boost-earnings-by-185/)
Now, the property has become a gold mine with the completion of the Carey Island access interchange of the South Klang Valley Expressway (SKVE) expected in 2015, and A&M stands to reap a windfall.
(http://www.focusmalaysia.my/Mainstream/A-M-Realty-s-unexpected-gold-mine)
Ng has been reported as saying the Carey Island land was purchased more than 30 years ago for less than RM1 psf.
According to news report then, the land was valued at more than RM50 psf or RM4.2 bil, valuing A&M at about RM11.50 per share.
But the valuation may be of the high side as the land is still classified as agricultural and will need to undergo lengthy approval processes for status conversion. Its lease expires only in 2105. According to an accountant, agricultural land can be re-valued as long as it is not classified for future conversion and development.
A&M’s Carey Island land has a net book value of RM1.23 mil, significantly below the current value. For instance, KSL Holdings Bhd paid Rm156.5 mil or RM8 psf in 2009 to acquire 178.4ha of freehold land on the Blackwater Estate, about 8KM from Carey Island. According to KSL management, the land has a current market value of RM35 psf.
(http://realestatesmalaysia.blogspot.my/2014/01/a-realtys-unexpected-gold-mine.html)
Aim the Bull next...
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