F&N

F&N: robust demand for the launch of Watertown, a JV btwn FNN, Far East and Sekisui House. As of yday afternoon, ~500 units were sold out of the 992 unit project. Turnout at the showflat was good. ASP was ~$1100, inclusive of a 10% developer discount, 5% early bird discount and 3% stamp duty absorption.
This compares with Sim Lian’s A Treasure Trove launched at ~$866 psf in Sep, and located opposite to Watertown.
The Watertown is located in Punggol Central, next to Punggol MRT. It is a mixed devt comprising of suites, SOHO apts, sky patios and condos. A key feature is the integration of Water Point, a retail mall of ~370k sf which will incl an IMAX cinema.
Deutsche notes pricing is broadly in line with its forecasts and estimates ~26% margins based on estimated break even of $809 psf. The house has a Buy rating with TP $7.06.