Genting Plantations Berhad has announced its acquisition of 152 hectares of land in the Sentul City township of Bogor, Greater Jakarta, for MYR593 million. This move is seen as a significant expansion of its property development portfolio, following the ongoing construction of a Jakarta Premium Outlet, set to be completed by the end of 2024. According to reports from Maybank, Kenanga and MIDF investment Banks, the acquisition is strategically located and poised to benefit from the area's growing real estate market but information on the potentials are still scarce.

Maybank remains neutral on the venture, maintaining a HOLD rating with a target price of MYR6.21, citing insufficient details on the development plans. Kenanga however has trimmed its FY25 earnings forecast by 3% due to anticipated higher finance costs but retains a MARKET PERFORM rating with a target price of MYR6.00. MIDF also holds a NEUTRAL stance with an unchanged target price of MYR6.10, reflecting the fair acquisition price and potential future value appreciation.

The land purchase, averaging MYR391 per square metre, is expected to be completed by the first quarter of 2025. Despite a slight increase in gearing, analysts believe the acquisition's strategic location and deferred payment scheme make it a viable investment. As Genting Plantations continues to build its footprint in Indonesia, the company's focus on property development in Greater Jakarta aligns with its broader expansion strategy and may drive future growth.