FOCUS O MID-RANGE PROPERTIES PAYS OFF FOR DEVELOPMENT GIANT, AS IT REMAINS OPTIMISTIC ABOUT ACHIEVING ITS RM5 BILLION TARGET THIS YEAR
With the air of change still thick with euphoria following the election, it is also comforting to know that there is bright news on the “business-as-usual” front.
Providing a barometer for the property market, leading developer SP Setia Bhd has recently announced that the group has achieved a revenue of RM655.5 million, and profit before tax of RM94.4 million, for the first quarter ended March 31, 2018.
Over the same period, the company also secured property sales amounting to RM1.11 billion in value.
According to SP Setia, local projects contributed RM635.6 million, which represented approximately 58% of the total sales while international projects contributed RM469.1 million, which represented the remaining 42% of the total sales.
“Despite the softer sentiment and majority of the public taking a cautious approach, the RM1.11 billion sales achieved were within expectations and also validates the strategy S P Setia has adopted for the local market in rolling out more mid-range landed properties in our established townships,” said Dato’ Khor Chap Jen, president and chief executive officer of S P Setia.
The upcoming major launches in Klang Valley include Setia Alam, Setia Ecohill 2, Setia Eco Park, Setia Eco Glades, Setia Alamsari and Alam Impian while in the Southern region, the planned major launches are in Taman Pelangi Indah, Setia Eco Gardens and Setia Tropika.
In the north, the Group will also be launching the much-anticipated Setia Fontaines, the new lifestyle development in the northern part of mainland Penang.
On the international front, a condominium project called Daintree Residence will be making its debut at Toh Tuck Road, Singapore. The SGD480 million development features 327 residential units and will be launched in the third quarter of the year.
Khor said the overall sentiment towards the property market has improved in Singapore, and Daintree Residence is expected to do well given the right timing and strong demand. The project is is strategically situated close to shopping and dining options at Beauty World Centre, Bukit Timah Shopping Centre, Bukit Timah Plaza, West Mall and The Grandstand.
“There are also numerous schools nearby such as Bukit Timah Primary School, Methodist Girls School and Hwa Chong Institution and the site is within short walking distance to Beauty World MRT station. The strategic location is poised to be an attractive proposition for home buyers and investors alike,” Khor said.
On April 13, the Group completed the acquisition of the remaining 50% equity interest in Setia Federal Hill Sdn Bhd. This will enable the Group to own 100% of the 51.57 acres land in Federal Hill in Kuala Lumpur.
The Federal Hill land is planned for an integrated mixed development with residential and commercial components as well as a retail mall development. With its strategic transit oriented location at the Bangsar business district, served by the LRT service and also walking distance to ready transportation hub at KL Sentral, the masterplan has been enhanced to a potential GDV of approximately RM20.19 billion.
“The Setia brand has always been associated with established townships but on top of that, we have also built a strong following for Transit Oriented Development where the existing integrated KL Eco City has been thriving. Targeted to be launched in 2019 and to be developed over 15 – 20 years, Federal Hill land with GDV approximately three times the size of KL Eco City will become one of the key projects for the Group moving forward,” Khor explained.
The Group’s prospects going forward remain positive with total unbilled sales of RM7.95 billion, anchored by 46 ongoing projects and a remaining land bank of 9,586 acres worth RM139.72 billion in GDV.