E&O

Its net asset value stood at RM4.61 per share, including the significant accretion from Seri Tanjung Pinang 2 (STP2). Stripping off STP2, AmResearch’s net asset value stands at RM1.36 per share.

STP2 remained as the key catalyst for E&O given the potential tripling of net asset value and deep development potential of the 760-acre prime land located opposite the highly successful STP1.

E&O was on track to obtain approval from the Penang Government in the second quarter of 2014 for the commencement of reclamation works on STP2, which it expected to begin in the same quarter. It said approval-in-principle was obtained from the state government in April 2011 for STP2 and this was pending (Department of Environment) approval for the Detailed Environment Impact Assessment (DEIA) study.

E&O was currently (march 2014) conducting a last round for the public to submit feedback on the DEIA study with the cut-off date being March 27 2014. Assuming no hiccups, this would mark the final step to obtain DOE’s approval on the DEIA study.

The launch of STP2 could happen earliest in end-2016, two years after the commencement of reclamation works.

Observers were positive that STP2 would do well, underpinned by scarcity of land, the firm establishment of STP1, and improved accessibility ( Second Penang Bridge and Penang undersea tunnel).

Launches of E&O’s key prolific projects were on track. The balloting for Avira Wellness (Phase 1: 208 terrace units) was earmarked to happen in April 2014, with indicative prices of more than RM600 per sq ft (fully-fitted units).