ON 30 Sep 2025, OSK announced the proposed acquisition of a 3.3-acre freehold land parcel in Subang Jaya, Selangor for RM44 mil.
The site has been earmarked for the development of serviced apartments with an estimated gross developmental value (GDV) of RM427 mil.
The acquisition is expected to be completed by quarter one of 2026 (1Q26), with the project targeted for launch approximately two years thereafter.
The land parcel is strategically located within the established Tropicana Metropark, an 88-acre integrated township featuring residential developments, business spaces, retail hubs, an international school, and a 9.2-acre urban park.
Situated in the mature and vibrant Subang Jaya area, the project will benefit from a comprehensive ecosystem of amenities, including prominent retail centres, medical facilities, and reputable educational institutions such as GEMS International School and Sri KDU International School, which provide international curricula for students aged 3 to 18.
For comparison, within the same Tropicana Metropark township, Avaland has successfully launched two residential project:
1/ Alira Residences (GDV: RM578 mil) – rolled out in two phases (Nov 2021 and July 2022). The project recorded strong demand, achieving a 95% take-up rate by its topping-out ceremony in Aug
2/ Amika Residences (GDV: RM460 mil) – launched in early 2024 and secured a strong 60% take-up rate within just two months of its launch.
According to various property listing platforms, the most recent asking price for Amika Residences is in the range of RM690–800 psf.
OSK is targeting to launch its project at pricing level of above RM700 psf, broadly in line with the prevailing asking prices of nearby Amika Residences.
The strong sales performance of Avaland’s recent launches within Tropicana Metropark, notably the 95% take-up at Alira Residences and the rapid 60% absorption for Amika Residences within two months, underscores the presence of a ready and resilient market.
This track record suggests healthy demand for new residential products in the township, thereby mitigating market risk for OSK’s upcoming development.
The purchase consideration translates into a land cost-to-GDV ratio of 10.3%, which we view as attractive, positioning at the lower end of the typical 10–20% range for urban land acquisitions.
Such a relatively low entry cost provides OSK with ample headroom to sustain healthy development margins, while also offering a meaningful buffer against potential construction cost volatility.
The Subang Jaya acquisition marks OSK’s second land deal in 2025, following its Rawang purchase earlier in the month.
Year-to-date, the group has replenished a total of 17.8 acres of land, carrying a combined GDV of RM1.69 bil. This brings OSK’s overall landbank to 2,493 acres with an estimated total GDV of RM20.2 bil.
Both acquisitions reinforce and expand OSK’s presence in the Klang Valley. Assuming a four-year development timeline and a profit before tax margin of 20%, the project is estimated to deliver an incremental RM18.4 mil in annual earnings.
HLIB maintains Buy for OSK with an unchanged target price of RM2.13. OSK offers a compelling multi-engine growth story, anchored by its fast-growing private credit business and expanding cable division, which rides on rising demand from utilities, RE players, and mission-critical infrastructure. —Oct 1, 2025
Main image: OSK Holding
