By BUSINESS TIMES
PUCHONG: SP SETIA Bhd expects its overseas developments to contribute more than half of its net profit and revenue by 2016, driven by the Battersea Power Station project in London.
The property developer has 34 ongoing projects and the undeveloped portion is worth about RM70 billion. Eight of these projects are located in London, Australia, Singapore, China and Vietnam.
For fiscal year ending October 31, overseas ventures will contribute around 20 per cent to the group’s net profit and revenue, said SP Setia president and chief executive officer Tan Sri Liew Kee Sin.
“Although we have achieved more than RM1 billion in sales from the Battersea – Circle West development, we can only recognise the earnings when the properties are completed in 2016. The whole project will take more than 10 years to develop and, thus, we can expect higher contribution going forward.”
Liew was speaking after the topping out ceremony for Trigon, the final phase of the residential component for Setia Walk in Pusat Bandar Puchong yesterday.
The RM39 billion Battersea project, the single largest property project by value in Europe, was launched early this year. It is owned by a consortium comprising SP Setia, Sime Darby Bhd and the Employees Provident Fund.
SP Setia owns a 40 per cent share in the consortium, which has contributed RM1.25 billion in new sales to the group as at June 30.
Liew, meanwhile, is bullish of achieving more than RM6 billion in property sales this year, surpassing its initial target of RM5.5 billion.
SP Setia has achieved sales of RM4.76 billion in the first seven months of this year, which is 80 per cent of its 12-month target, boosted by the Battersea project.
The group’s unbilled progress billing is around RM8 billion.
– Malaysia Property News