Capitaland

Capitaland: looks primed to become the next Iskandar play. The developer may acquire more than 60 acres of land in Danga Bay in southern Johor state, according to the Edge. The planned project is estimated to have a gross devt value of RM 4-5b, and tips the co may tie up with Iskandar Waterfront Holdings for this project. Capitaland says the co. is constantly exploring good investment opportunities in Malaysia and will make necessary disclosure as and when it enters an investment venture. Back in 2010, the Iskandar Regional Devt Authority chose a waterfront area in Danga Bay for the wellness township project in Iskandar Msia. Khazanah and Temasek will be jointly developing the project on the 202 ha site on a 50/50 JV basis. The devt, which apart from offering modern medical services, would offer holistic wellness services and faciltieis and alternative medical treatment, and was said to be likely completed in less than 5 yrs. Capitaland may be well positioned to benefit further from the warming ties between Spore and Msia. Back in Jun 2011, it was appointed, together with UEM Land to “oversee the marketing and development” of the Khazanah-Temasek 60/40 joint commercial devt at Ophir/Rochor Road. Capitaland trades at 1.1x P/B, offers 2.1% indicative yield.