Tuesday, 22 April 2014
Tambun: Pearl City Updates
Do you feel any signs of property slowdown at the moment?
It is reported that Iskandar region has already suffered.
However, I can see more new launches in Penang mainland, especially by unknown small developers. Besides, it seems like most property stocks are making good progress at the moment.
Last weekend Tambun Indah organised an official launch for its Rain Tree Park I & Pearl Avenue 2 at its Pearl City sales office.
Rain Tree Park I is a gated & guarded residential development in Pearl City. It comprises total 310 units of 2-storey linked semi-Ds, 2-storey terrace houses and townhouses with a total GDV of RM140mil.
From the sticker chart in the sales office, it is more than 60% sold from about 140 units released for sale. Though the sales are not as "hot" as you like, I think it is considered quite good and can only get better with time.
The linked semi-D is priced from RM538k while terrace is from RM438k after rebate, with free stamp duty and legal fees.
The land and built-up area of the linked semi-D in Rain Tree Park is smaller than normal semi-D in Pearl Residence which are sold at well above RM600k.
The townhouses will probably be the first of its kind in this area but are not opened for sales yet.
Site of Rain Tree Park, with beautiful "rain trees"
Pearl Avenue 2 comprises 44 units of shop-offices and Tambun should not face any difficulty to sell all of them.
Construction progress of Pearl Avenue I
There is a slight change in Pearl City Master Plan in which the location of the medical center and retirement village are shifted across the road from the site of international school to the opposite site. Tambun plans to build service apartments and an office tower there.
So we will probably see the first non-low-cost high rise residential property in Simpang Ampat in the near future. The office tower will house Tambun Indah corporate office.
From Pearl City latest layout plan, we can also have a glimpse of the location of the newly acquired land.
Newly acquired land in red boxes
The construction of GEMS International School and Pearl City Mall is scheduled to start within the second quarter of this year.
The International School has started its students enrollment and it will start its business in September this year at a temporary location within Pearl City. It will move to its proposed site by September 2015.
The mall is a fully-leased mall which will be managed by other company. Tambun Indah will be responsible for its construction only so there is no recurring rental income for Tambun Indah.
Pearl City Mall - a duplicate of Amanjaya Mall at Sg Petani?
At the moment, Tambun Indah's share price has hit a new high and closed at its all-time high of RM2.06. My own target price for Tambun is RM2.10.
Is Tambun fully valued? Well, lets check out its upcoming FY14Q1 result in May.