SP Setia’s Eco Templer project receives strong take up rate

KUCHING: SP Setia Bhd’s (SP Setia) Setia Eco Templer township development achieved a strong 95 per cent take-up rate which analysts believe, was likely due to the company’s attractive offer under the Setia 10:90 programme.

In a report, the research arm of MIDF Amanah Investment Bank Bhd ( MIDF Research) noted that the first phase of the Setia Eco Templer launch had already achieved 95 per cent take-up rate.

“Out of the 234 units available in Phase1withgrossdevelopment value (GDV) of RM280 million, SP Setia has successfully sold 222 units of the property worth RM250 million.

“Note that Phase 1 consists of 176 units of link house priced from RM850,000 onwards, 52 units of semi- detached house priced from RM1.7 million onwards, and six units of bungalows priced from RM2.8 million onwards.

“We gather that there were only 12 units of semi- detached house available for sale due to the strong take up in the past few weeks,” it said.

“We believe that the strong take up rate seen is due to the special offer of Setia 10:90 programme in which buyers would only need to pay a 10 per cent deposit now.

“For the remaining 90 per cent, buyers will have up to three years to secure the loan facility as they are only required to do so after taking the vacant possession of the property,” it added.

Overal l, MIDF Research maintained its earnings forecast of the company as it has already included its sales forecast from Setia Eco Templer into its financial year 2016 ( FY16) sales estimates, previously.

“We also maintain our FY16 and FY17 Core Net Income estimates at RM714 million and RM788 million respectively,” it said.

The r e s e a r ch hous e maintained a ‘buy’ call on the stock and said, “We like SP Setia due to the recent confirmation of Datuk Khor Chap Jen as chief executive officer has removed the company’s leadership uncertainty, its high dividend yield of 5.8 per cent, and strong balance sheet with net gearing of 0.28-folds.”