- It has been reported in the press that Tan Sri Syed
Mokhtar – via his private entity – and Sunway Bhd have submitted a proposal to
redevelop Kelab Golf Negara Subang (KGNS) with a commercial value of
RM5bil.
- The golf club, which was opened in 1968, boasts a land
size of 330 acres, which sit squarely in the middle of established and
developed areas of Subang Jaya, Kelana Jaya, Ara Damansara and Bandar
Sunway.
- The prime land is owned by the government and is currently
halfway through its 99-year lease.
- This is not something new as there have been rumours in
the market that the government is looking at reclaiming control of this land,
with a view to liquidate this prime land to developers. This of course has been
opposed strongly by members, as many view the club – which was initiated by
Tunku Abdul Rahman – as an iconic institution and its members are mostly made
up of ex-top civil servants.
- Given the circumstances, we are of the view that it would
be a massive challenge for the interested parties to get hold of this prime
land.
- Similarly, it is believed Sime Darby’s proposal to
redevelop Kelab Golf Perkhidmatan Awam (KGPA) – which also sits on a prime land
within Damansara/Petaling Jaya – for
high-end residential units has been met with strong opposition.
- This just shows the lack of prime land for development in
the market and this will continue to drive strong land prices going
forward.
- We maintain our HOLD rating on Sunway with our fair value
unchanged at RM2.85/share
Source: AmeSecurities
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