IOI to delay launch of Sentosa Cove projects: Citi

 

Citigroup Research says it is removing the Sentosa Seaview and The Pinnacle Collection projects from its immediate three-year forecasts

IOI Corp Bhd will postpone the launch of its Sentosa Cove projects - namely Sentosa Seaview and The Pinnacle Collection - due to the fragile residential property market in Singapore, said a Citigroup Research report.

IOI Corp, via its unit IOI Properties Bhd, is expected to launch the Sentosa Seaview project by this month and The Pinnacle Collection by April next year.

"We are removing both projects from our immediate three-year forecasts," said Citigroup Research in a report, after it visited the company's management recently.

The research house also assumed that its Dengkil Land project, with an estimated gross development value of RM2 billion, to be postponed to fiscal 2010.

"We are revising downwards earnings before interests and tax contribution from the property development business by 13 to 25 per cent over FY09-FY11E," said the report.

The projects, owned by IOI Prop and joint-venture partner Ho Bee Investment Ltd,are IOI's biggest high-end development in Singapore's Sentosa Cove.

The land at Seaview costs S$1,364 (RM3,259.96) psf while the land at The Pinnacle Collection costs S$1,822 (RM4,354.58) psf.

Pinnacle Collection will have seven 18-storey blocks and a 20-storey luxurious condominium. It will have 280 apartments and penthouses of various layout and sizes.

The Pinnacle Collection is one of two condominium parcels that flank the entrance of the marina leading to Sentosa Cove.

It is adjacent to the 1.46ha leasehold Sentosa Seaview, which was successfully tendered by another IOI Properties subsidiary with Ho Bee in March last year.

Sentosa Seaview is a luxury condominium project comprising two eight-storey apartment blocks with 151 units.