Stock Name: SPSETIA
Company Name: SP SETIA BHD
Research House: AMMB
Company Name: SP SETIA BHD
Research House: AMMB
Research houses are in consensus that SP Setia Bhd's acquisition of a strata title development in Leong Bee Court, Singapore, for S$65 million (about RM159 million) will pave the way for the
company to become a regional property developer.
OSK Research said the development comprising 27 strata units and a common property on a 0.27 hectare-land has been proposed to be redeveloped into a multi-storey residential apartment building, with an estimated gross development value of S$130 million (RM318 million).
"Given the freehold status of the land, we believe SP Setia can potentially fetch an average selling price of around S$1,400 per square feet based on a 25 per cent premium on leasehold property," it said in a research note today.
Meanwhile, AmResearch said assuming an average selling price of S$1,100 per square feet and a breakeven cost of S$891 per square feet, the project is expected to yield a development margin of 19 per cent.
Furthermore, given that the project was a maiden venture into the island republic, it gives great opportunity for the group to demonstrate its capabilities in the Singapore market, it said in a research note.
Another research house, HwangDBS Vickers Research, said SP Setia's move to enter the Singapore market would give the Malaysian property developer a good platform to cross-sell its other projects and enhance the company's branding.
All research houses reaffirmed "buy" call on SP Setia.
AmResearch and OSK Research maintained their fair value on the property company at RM8.10 per share and RM7.23 per share, respectively, while HwangDBS Vickers held to its RM7.90 target price. -- Bernama
company to become a regional property developer.
OSK Research said the development comprising 27 strata units and a common property on a 0.27 hectare-land has been proposed to be redeveloped into a multi-storey residential apartment building, with an estimated gross development value of S$130 million (RM318 million).
"Given the freehold status of the land, we believe SP Setia can potentially fetch an average selling price of around S$1,400 per square feet based on a 25 per cent premium on leasehold property," it said in a research note today.
Meanwhile, AmResearch said assuming an average selling price of S$1,100 per square feet and a breakeven cost of S$891 per square feet, the project is expected to yield a development margin of 19 per cent.
Furthermore, given that the project was a maiden venture into the island republic, it gives great opportunity for the group to demonstrate its capabilities in the Singapore market, it said in a research note.
Another research house, HwangDBS Vickers Research, said SP Setia's move to enter the Singapore market would give the Malaysian property developer a good platform to cross-sell its other projects and enhance the company's branding.
All research houses reaffirmed "buy" call on SP Setia.
AmResearch and OSK Research maintained their fair value on the property company at RM8.10 per share and RM7.23 per share, respectively, while HwangDBS Vickers held to its RM7.90 target price. -- Bernama
No comments:
Post a Comment