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Thursday, February 26, 2009

Brisk sales for SP Setia home loan package

SHAH ALAM: SP Setia Bhd’s recently launched 5/95 Home Loan Package has achieved better-than-expected sales of RM300mil amid the softening economy, said group managing director Tan Sri Liew Kee Sin.

From left: SP Setia executive director Teow Leong Seng, chief financial officer Yap Kok Weng, chairman Tan Sri Abdul Rashid Abdul Manaf and Tan Sri Liew Kee Sin at the briefing.

“At that point in time, we did not specify a target because the market was so bad. We wanted to test whether this (5/95 programme) will work, and apparently it works very well.

“RM300mil sales in less than two months is very good,” he said after the company AGM yesterday.

The RM300mil sales figure was based on bookings made, he said.

Launched on Jan 19, SP Setia’s 5/95 Home Loan Package allows buyers to pay only an initial 5% of the price of the house while all legal fees and stamp duty on the sales and purchase agreement, among other benefits, will be borne by SP Setia. The package is available until April.

SP Setia has targeted RM1.1bil in revenue for its financial year ending Oct 31 (FY09). It has already chalked up RM400mil in sales so far.

Meanwhile, the developer said its RM2bil Eco Lakes township in Ho Chi Minh City, Vietnam, would be launched next month as planned.

SP Setia has a sales target of RM100mil in FY09 for the 558-acre residential property development, which will take at least 10 years to complete.

In April, it will launch its first high-rise project, Setia Sky Residences.

The luxury serviced apartments project, located at the intersection of Jalan Tun Razak and Jalan Raja Muda Abdul Aziz in Kuala Lumpur, has a gross development value of RM800mil.

The company has targeted to achieve RM200mil in sales for this project in FY09.

Asked if SP Setia would be interested in any merger and acquisition (M&A) plan, Liew brushed off the idea.

“M&A doesn’t make sense right now unless the company has a lot of good landbank, but most companies that are in trouble do not have much land left,” he said.

To date, Liew said the company had unbilled sales of RM1.2bil and a landbank of about 4,000 acres.

The company would maintain its dividend payout ratio of 50% of profit after tax, he said.

By The Star

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