PETALING JAYA, Gamuda Bhd’s recent land acquisition in London is not expected to significantly impact its short-term earnings or valuations, said Maybank Investment Bank Research (Maybank IB).
The research house noted that the site, together with Gamuda’s other Purpose-Built Student Accommodation (PBSA) developments — collectively valued at around RM1.9 billion in gross development value (GDV) — could help balance moderating property sales in Malaysia.
Scheduled for completion between 2028 and 2029, the London project is strategically located near University College London’s East campus and the London College of Fashion, which together have over 10,000 students. The site is also in proximity to Westfield Stratford, the largest shopping mall in London, Maybank IB said.
The project forms part of Gamuda’s broader plan to deliver up to 3,000 student accommodation beds across the United Kingdom within the next five years. With this acquisition, the group’s PBSA portfolio now totals 1,232 beds spanning three sites in London and Glasgow.
Looking ahead, Gamuda aims to expand its PBSA footprint to key university cities including Bristol, Edinburgh, Manchester, Birmingham, and Leeds — all of which host sizable international student populations. The PBSA segment is seen as a counter-cyclical asset class with robust demand, averaging 2.7 full-time students per available bed, Maybank IB highlighted.
“Upon completion, Gamuda may either retain the PBSA assets for recurring income or divest them,” the research house said. While the acquisition price was not disclosed, Maybank IB estimated that the project would add about RM67.5 million — or one sen per share — to Gamuda’s group earnings once completed.
