SINGAPORE (Nov 24): UOB KayHian likes Pacific Star Development (PSD), the property investment and development firm, which is capitalising on the rising affluence and urbanisation trends in Asean, fuelled by a burgeoning middle income class and young demographics.
PSD, which listed in Feb following the completion of its reverse takeover of LH Group, invests and develops office, retail and residential properties in Southeast Asia. PSD operates in the luxury development space, which are luxury mixed-use, located in prime locations, fully fitted and ready for moving in. Its current two projects include the Puteri Cove Residences and Quayside, and The Posh Twelve.
PSD also provides aluminum works and the manufacturing of traction devices and vehicle parts.
According to a Friday unrated report for retail investors, UOB analyst Loke Peihao says PSD’s execution is aided by its strong regional network, relationships with dealmakers and landowners as well as its ability to clinch off-market acquisition opportunities. On the ground, PSD also has teams based in Kuala Lumpur, Johor Bahru and Bangkok and is eyeing new markets like Jakarta and Ho Chi Minh City.
At present, PSD has partnered with DAMAC International, a leading developer in Dubai, to jointly develop luxury properties across key cities in Southeast Asia, and also with PT Kukuh Mandiri Lestari (KML) to jointly develop mixed-use highrise developments on 10 ha of prime seafront land in Pantai Indah Kapuk 2 (PIK 2) in Jakarta, Indonesia. Its fund manager background has also helped the firm in terms of familiarity with governance and reporting.
Puteri Cove Residences and Quayside is expected to contribute RM1.5 billion ($490 million) in Gross Development Value (GDV) and will be completed by 4Q17. The project is a freehold mixed-use development located in Iskandar Puteri, Malaysia. The development comprises 658 luxury apartments in two 32-storey tower blocks, as well as a separate tower of luxury serviced suites and 56 SOHO/loft units , 79 retail units, all overlooking Singapore’s One°15 managed private marina.
The Posh Twelve is expected to bring in THB 5 billion ($206 million) in GDV, with multi-country sales launched in 2Q17. The project is a freehold mixed-use development comprising mid-end condominiums and a lifestyle retail centre, located on Tiwanon Road, Bangkok. It is a three minutes walk away from the Ministry of Public Health MRT station along the Purple Line and a 45-minute drive to Suvarnabhumi International Airport.
As at 12.48pm, shares in Pacific Star Development are trading at 26 cents at 0.7 times FY17 book.
