We were hosted by Pacific Star Development Limited (PSD) to visit their latest development, Puteri Cove Residences & Quayside, in Iskandar Puteri, Malaysia on 1 February 2018. We were shown various units, amenities and briefed on the economic prospects and other upcoming developments, such as the One°15 managed private marina, in Puteri Harbour.
PSD is an ASEAN property developer with previous property launches and investments in Kuala Lumpur and Bangkok, and pipeline projects in Iskandar and Bangkok. PSD was formed from a reverse takeover (RTO) and subsequently listed on the SGX Catalist Board on 16 February 2017. It also has a non-property division comprising its aluminium building works business in Singapore.
Site Visit Highlights
No stock rating or price target provided, as we do not have coverage on PSD.
Peer Comparison – PSD’s P/B and ROA is the highest among its peers
Source: Bloomberg, Company
PSD is the resultant entity of the S$140 million RTO with LH Group limited, which previously only comprised the non-property division. PSD’s Management has collective experience in deal origination and property investment management, having managed 3 closed-end property funds since 2005.
PSD disposed of its non-core business (Autotrax) in May 2017, and had inked a MOU in September 2017 with an Indonesian Master Developer to develop an iconic waterfront project, and in October 2017 entered into a strategic partnership with a DFM-listed property developer in Dubai to develop luxury properties in key cities across Southeast Asia over the next five years.
Property division: Current projects
PSD has two current projects – Puteri Cove Residences and Quayside (51% owned with DB2 Land) in Iskandar and The Posh Twelve (51% owned joint-venture) in Bangkok
Property division: Pipeline projects
– Different stages of negotiations in Malaysia, Thailand, Indonesia and Vietnam
Non-property division: Aluminium division
Figure 3: Structure of PSD’s Aluminium division
Prime asset within a Waterfront CBD