Property developer SP Setia confident it will easily surpass RM5.5bil target

By THE STAR


Liew:“We are going to revise our sales target a lot more than anticipated as 2013 has been a spectacular year so far. We have sold out our properties in Singapore, our Battersea project sales are also doing well.

PUCHONG: Property developer SP Setia Bhd is confident that it will exceed its sales target of RM5.5bil by a comfortable margin, thanks to the hot demand for its projects in Singapore, London and Malaysia.

President and chief executive officer Tan Sri Liew Kee Sin said that as of June, the company’s sales had already reached RM4.6bil.

“We are going to revise our sales target a lot more than anticipated as 2013 has been a spectacular year so far. We have sold out our properties in Singapore, our Battersea project sales are also doing well.

“As far as local market is concerned, we are still banking on the sales of our Setia Alam and Setia Eco Park developments.

“About 60% of our sales are from Malaysia while the remaining are from our overseas developments,” he told reporters after the Trigon topping out ceremony that marked SP Setia’s completion of its SetiaWalk development on a 20.8-acre land in Puchong yesterday.

Trigon, with gross development value (GDV) of RM143mil, is a luxury condominium of 181 units is selling at RM700 per sq ft. It is part of the SetiaWalk hybrid developmennt with total GDV of RM1bil.

According to Liew, this would be the company’s last phase of development in Puchong as SP Setia has exhausted its landbank in that area.

“We would love to have more land bank in Puchong but it’s difficult to find any available land in this growth corridor linking to Putrajaya and Kuala Lumpur International Airport,” he said.

Going forward, Liew is excited on the company’s new development in Semenyih, dubbed the Setia Eco Hill, that is slated to transform the sleepy town into the conceptual residential area similar to Setia Alam and Setia Eco Park.

“We have about 1,700 acres of land in Semenyih where we have just launched our bungalow lots at RM100 per sq ft a few months ago.

“Next, we are looking forward to the launching of the linked and semi-detached houses next month.

“We will be able to finalised the number of units next month,” he said.

The total GDV for its Setia Eco Hill development is around RM6bil, according to Liew.

“Similar to all our developments, Setia Eco Hill is a conceptual residential area.

“Additionally, we have also taken into consideration to make the area very accessible to different modes of transportation.

“It is located next to the Lekas Highway, where currently a flyover is being built to connect the development to the road.

“Setia Eco Hill is also 10 minutes away from the upcoming mass rapid transit station in Kajang and it is only 20 minutes drive to Cheras,” he said.

Liew said the selling price of its property there was going to be about 10% higher than the existing property there as its development came with conceptual living environment and infrastructures.

“This is going to be a new growth driver for the company in terms of earnings from 2015 onwards,” he said.

Liew explained that the targeted market for Setia Eco Hill were people living in the congested area of Cheras.

“Similar to our development in Setia Alam, the majority of our customers are people living in Klang,” he said.

Currently, about 80% of SP Setia earnings are derived from its projects in Malaysia, but Liew anticipated this would change in five years time.

“This is because like our Battersea project in London, we already sold a lot of units but the earnings can only be recognised upon its completion in 2016.

“The same goes for our developments in Melbourne, where the earning could only be recognised in 2015,” he said.

– Malaysia Real Estate News

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