News Highlights - Gamuda, Sunway, Automotive Sector

Gamuda Bhd (RM3.55/share)

Gamuda Land in RM600mil commercial project in Kelana Jaya

Gamuda Land Sdn Bhd, the property arm of Gamuda Bhd, has purchased 4.86-acre freehold land in Kelana Jaya for RM95.0mil. It intends to develop the commercial plot into a mixed project of retail and office suites for RM600mil. Gamuda Land managing director Chow Chee Wah said the average selling price for the residential component is RM750 per sq ft while the retail shops are estimated at an average selling price of RM800 per sq ft.  The planning and content of this development is anticipated to be revealed in early 2014. The site is located behind the Giant hypermarket, and in front of Dataran Glomac. Other notable developments within a 500m to 1km radius are the newly-opened Paradigm Mall, Parklane Commercial Hub, Zenith Corporate Park, Kelana Square, Kelana Centre Point and Tiara Kelana. – StarBiz

Sunway Bhd (RM2.27/share)

Re-looks at project launch

In yet another sign of the impending slowdown in the high-end property market, Sunway Bhd is deferring the launch of some of its projects worth RM500mil that were initially slated to take off this year. The projects are related to Sunway Geo @ Sunway South Quay and Sunway Velocity. The former has a gross development value (GDV) of RM1.85bil while the latter has a GDV of RM3.0bil. Sunway Group’s property development division said it was reviewing the plan with a view of getting the most suitable launch date. – The Edge

Automotive Sector

Chinese auto firms keen to work with local players in view of the revised NAP

Several China-based automotive companies have expressed interests to tie up with local players to fast track their presence into Malaysia based on expectations that the revised National Automotive Policy (NAP) would liberalise the local automotive sector. A source familiar with the matter said priority would be given to companies with energy efficient vehicles (EEVs) capabilities - an area that the Government is emphasising to turn the country into an EEV hub. According to earlier reports, policies under the revised NAP are expected to include initiatives that would turn Malaysia into an EEV hub and liberalise the below 1,800cc segment to make it more attractive for new players. - StarBiz

Source: AmeSecurities