RHB Indonesia - Alam Sutera - A Decent Take-Up Rate For Chiara (Alam Sutera) Unknown Selasa, 09 Mei 2017




Good morning,

Alam Sutera – A Decent Take-Up Rate For Chiara
Last Saturday, we attended Alam Sutera’s launch of its Chiara sub-cluster, in Pasir Kemis, Tangerang. Chiara is a part of the Sari cluster, within the Suvarna Sutera project. It was an open event which welcomed both invited investors and other interested parties or passerbys. This launch was held in collaboration with several mortgage providers such as Bank Permata, OCBC NISP, Bank Central Asia and CIMB Niaga. We maintain our BUY call and IDR540 TP (59% upside) on this counter.

¨ Landed residential development. Suvarna Sutera is a new landed residential development located in Pasar Kemis, Tangerang. It is accessible via the Jakarta-Tangerang toll road, towards the Merak exit #31. Chiara is a sub-cluster of the Sari cluster, which in turn is within the 900ha Suvarna Sutera Phase 1 development. Alam Sutera currently has 2,600 ha of total development rights in Pasar Kemis, of which about 500 ha will be transferred to China Fortune Land Development Co Ltd (CFLD) by 2021.

¨ Chiara has three types of landed residential units. Land areas range 128-216 sqm per unit, while the area of its buildings spans 115-165sqm per unit. Each unit has two storeys and at least a car port and solar water heater. The Santa Laurensia school will be built by 2018, inside the Sari cluster. Residential units within the Sari cluster will also be protected by a double gate cluster system. An Alam Sutera sales agent told us that there will be a petrol station built by 2018, and more commercial tenants are expected to come in by 2019.
¨ Pricing & payment methods. The sales agent told us that property prices ranged from IDR1.4bn to IDR2.2bn per unit, or IDR10.5 per sqm to IDR11.5m per sqm respectively. There will be a 20% discount for those who pay by cash. Other buyers will be able to opt for 12-24 months in-house installment payments, or pay via mortgage. Loans were offered by Bank Permata, OCBC NISP (both banks had representatives at the launch) that offered a 5.99% fixed interest rate for two years. Other banks also had representatives giving more details of housing loans, at the launch. There was an additional 1% discount only for customers who purchased homes on 7 May. Alam Sutera also gave a Korean buffet lunch and door prizes such as LED TVs, home theatre systems and mobile phones to attract buyers to its event.
¨ What we observed. We dropped by the event at 11am, and found that its marketing office was not crowded at this time. We were offered a tour of the site as well. The most developed area is the Padi cluster (near the marketing office) while the Sari cluster is only half-developed. The Chiara sub-cluster is being prepped for ground-breaking works, and it is scheduled to be handed over in 2019. There are shophouses already built in front of the Sari cluster’s entrance, although its sole tenant is currently a coffee shop as there are a few residents already living in the recently-built Jati cluster.
¨ Conclusion. We found the Alam Sutera marketing office more crowded at 12.05pm, after our site tour. We gathered that 156 units were offered on that day, and were told that the take-up rate reached 60% (ie 93 units). (Yualdo Tirtakencana)

Link to report to be sent out later
Link to Daily report: Indonesia Morning Cuppa 090517





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Best regards,

Helmy Kristanto
Director
Head of Indonesia Research
PT. RHB Securities Indonesia


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