AMRESEARCH has reiterated its buy rating at RM2.35 and target price of RM3.42 for IJM Corporation Bhd’s subsidiary RB Land Holdings Bhd, following media reports of IJM’s upcoming launch of a RM140 million condominium project in Jelutong, Penang in the third quarter of this year.

According to media reports, IJM Properties Sdn Bhd will launch the Summer Place project at the Bandar Seri Pinang mixed development scheme off the Jelutong Expressway.

The development comprises 500 units priced from RM250,000 onwards with built-ups ranging from 990 to 1,440 sq ft, translating into an attractive price of RM252 psf.

“We expect take-up rates to be buoyant given its more recent launch of ‘The Spring’ also in Bandar Seri Pinang comprising 396 units which was 75% sold in the first day of launch,” the research house said in a note yesterday.

From the take-up rates and reflating prices of other IJM property developments in the vicinity, AmResearch believed launches in Jelutong would do well. It reflected that the “Platino” project launched late last year had been 40% sold and Nautilus Bay, which comprises build-and-sell sea fronting landed homes, was 60%-70% sold.

The research house said that the latest development reaffirmed its view that transaction volume in the property sector would pick up significantly in the third quarter, following the completion of the RB Land and IJM Properties merger in end-June.

“This will arguably create one of the largest property companies locally with RM30 billion worth of GDV (gross development value) and landbank of 9,000 acres (3,642 hectares),” the research house said.

It added that at a zero premium, RB Land’s two free warrants for its 4-for-5 rights issue at RM1.35 per share was already in the money.

RB Land was unchanged at RM2.35 yesterday with 70,000 shares traded.