Maybank Investment Bank Berhad
Date of Report: September 19, 2025

Gamuda’s London Ambition: Inside the Landmark 75 London Wall Redevelopment and What It Means for Investors

Executive Summary

Gamuda Berhad (GAM MK), a leading Malaysian construction and property group, continues to impress with its international expansion and robust financial performance. This report provides a comprehensive review of Gamuda’s strategic move into the UK market with the 75 London Wall project, its financial outlook, ESG credentials, and future growth catalysts. Maybank Investment Bank reaffirms its BUY rating, with a price target of MYR6.04, reflecting both the company’s resilient fundamentals and its forward-thinking approach in property and engineering.

London Calling: 75 London Wall as Gamuda’s UK Flagship

Gamuda’s largest overseas property initiative is the redevelopment of 75 London Wall, formerly known as Winchester House, in the heart of London. Acquired in March 2023 in a 75:25 joint venture with Castleforge for GBP257 million, the project aims to transform the 13-storey building into a modern, ESG-compliant Grade A office space.

• Redevelopment highlights: 4 new floors will be added, expanding net lettable office space by 50% to approximately 490,000 sq ft.
• Sustainability focus: Targeting BREEAM Outstanding, WELL Core Platinum, and NABERS UK 5-Star certifications, 85% of the existing structure will be preserved, demonstrating a retrofit-first approach.
• Prime location: Less than five minutes’ walk from Liverpool Street Station, the busiest in the UK and a hub on the Elizabeth Line, the building’s connectivity is unrivaled.
• Tenant appeal: 3 dedicated trading floors (each 45,000 sq ft, 4.3m ceiling), wide-open spaces with 13-meter clear spans, 18,000 sq ft of amenities, and terraces on every floor with panoramic views of London landmarks.

Gamuda expects to command lease rates between GBP90-GBP118 per sq ft annually. With an anticipated gross development value of MYR4.89 billion (GBP850 million) and a gross development margin of 20%, Gamuda could realize a net profit of MYR550 million (9 sen per share) post-completion in 2028, potentially distributed as a special dividend.

Financial Performance and Valuation: Strong Growth Across Segments

Gamuda has delivered robust revenue and profit growth, underpinned by a strong orderbook and substantial property pre-sales. The company’s valuation reflects its resilient earnings and strategic diversification.

Sum-of-the-Parts (SOTP) Valuation

Gamuda’s valuation is based on a sum-of-the-parts approach, reflecting its diverse portfolio in engineering, construction, and property development. The 75 London Wall redevelopment alone is projected to contribute MYR438 million in equity value at a 20% GDM assumption, yet the overall SOTP target price remains stable at MYR6.04 due to an enlarged share base from its dividend reinvestment plan.

Strategic Growth Catalysts: Singapore, Data Centres, and More

Gamuda’s growth is underpinned by multiple catalysts:

• Singapore Expansion: Its 50% JV in Singapore secured a SGD1.01 billion (MYR3.33 billion) bid for a mixed-use development at Chencharu Close, with a GDV of MYR6 billion. This could add MYR300 million (5 sen per share) to SOTP valuation over five years.
• Data Centre Mega-Project: Gamuda assisted Pearl Computing in acquiring land in Port Dickson for a data centre campus (potential >1,000MW capacity). If awarded the core and shell construction, this could contribute at least MYR10 billion in works and add 2 sen p.a. to EPS and 40 sen to TP in a blue-sky scenario.

ESG Leadership: Ambitious Targets and Strong Track Record

Gamuda’s proprietary ESG score has increased to 76/100, reflecting improvements in renewable energy use and waste recycling. The company’s Gamuda Green Plan 2025 targets a 30% reduction in Scope 1 & 2 emissions intensity by 2025 (45% by 2030), with a net-zero goal by 2050.
Key ESG highlights:

• Renewable energy accounted for 43.1% of operations in FY24, up from 22.3% in FY23.
• Waste recycled improved to 24.5% in FY24 from 5.6% in FY23.
• 750,000 trees planted as of FY24, aiming for 1 million by 2030.
• All future projects to be Green Building Index certified.
• Strong gender diversity: 57% female board members, 34.5% women in workforce.
• 2% of annual profits before tax allocated to Yayasan Gamuda, supporting scholarships and social initiatives.

Operational Strengths and Strategic Positioning

Gamuda is recognized for its technical prowess in engineering and tunneling—having delivered large-scale projects such as KVMRT 1 & 2, SMART, and the Sg S’gor Dam. Its property portfolio spans Malaysia, Vietnam, the UK, and Australia, with a remaining GDV of MYR60 billion.
Key operational highlights:

• Outstanding E&C orderbook: MYR39.8 billion as of April 2025.
• Unbilled property pre-sales: MYR7.7 billion.
• Targeting MYR20-25 billion in E&C job replenishment in FY26, with Australia as a significant second base.
• Malaysia remains the core property market, complemented by strong expansion into the UK, Vietnam, and Australia.
• Net gearing remains comfortably below its 0.70x internal cap.

Risks and Opportunities

Upside catalysts:

• Major contract wins, especially in rail infrastructure (e.g., KVMRT3).
• Faster-than-expected pre-sales in Malaysia and overseas.
• Accelerated progress in Penang Silicon Island reclamation.

Risks:

• Delays in infrastructure project rollouts.
• Cost overruns or execution delays in engineering and construction.
• Potential shortfalls in property development timelines.

Shareholder Structure and Market Performance

Gamuda’s major shareholders include the Employees Provident Fund (18.1%), Permodalan Nasional Bhd. (7.1%), and Raja Azlan Shah Eleena (4.0%). With a market capitalization of MYR32.7 billion and a free float of 69.7%, Gamuda’s liquidity remains robust. Foreign shareholding stood at 29% as of July 2025, up from lows in previous years.

Conclusion: A Compelling Growth and Value Proposition

Gamuda’s strategic expansion, diversified orderbook, and pioneering approach to sustainable development position it as a top pick in Malaysia’s construction and property sector. With strong earnings visibility, a progressive ESG agenda, and multiple growth catalysts on the horizon, Gamuda offers investors an attractive blend of growth, yield, and long-term value.

Contact Information

For further details, please contact:

• Yin Shao Yang, Maybank Investment Bank Berhad, [email protected], +603 2297 8916