(from left) SP Setia Berhad executive vice president and CFO Choy Kah Yew, SP Setia Berhad president and CEO Datuk CJ Khor, SP Setia chairman Tan Sri Dr. Wan Mohd Zahid Mohd Noordin and SP Setia Berhad deputy president and COO Datuk Wong Tuck Wai in a press conference after their AGM yesterday. IZZRAFIQ ALIAS / The Star. May 18, 2017.
SHAH ALAM: Property developer SP Setia Bhd
aims to increase contribution from overseas projects to 20% of revenue this year from 8% last year.
President Datuk CJ Khor said the revenue would be propelled mainly by its Australian project, namely a mixed development with a gross development value (GDV) of A$478mil (RM1.54bil) at Exhibition Street in Melbourne’s central business district, and the A$38mil (RM122.29mil) residential project in Prahran, Melbourne.
“The launches for the two sites are expected to commence in the second half of this year, hopefully by July,” Khor told reporters after SP Setia’s AGM in Shah Alam on Thursday.
On the company’s plan to acquire I & P Group Sdn Bhd, he said the company is currently in the process of undertaking due diligence, and this was anticipated to be completed within a month.
“We are expected to seal the acquisition before year-end,” said Khor, who is also the company’s chief executive officer.
SP Setia had entered into a non-binding memorandum of intent with Permodalan Nasional Bhd and Amanahraya Trustees Bhd to start negotiations on the proposed acquisition of 100% of I & P Group on April 14.
The exercise, estimated to be within the range of RM3.5bil to RM3.75bil, would increase its total landbank to close to 4,046.86ha, making it the largest property player in Malaysia.
Meanwhile on sales, S P Setia achieved RM3.82bil sales in the financial year ending Dec 31, 2016 (FY16).
Some 92% of the overall sales was derived from the local market, where central region contributed the most with RM2.64bil and the rest of the regions contributed RM859.7mil. The remaining 8% was from the international projects, Khor said.
The company has reiterated its RM4bil sales target for FY17 and it is confident of achieving it.
Khor said in the first four months of this year, the company recorded RM801mil in sales compared to RM696mil in the same period last year.
“It gives us a reason to be optimistic,” he said.
SP Setia has planned a diversified range of new launches worth RM5.4bil in strategic locations to cater to the various demands and needs of property buyers.
Among the upcoming launches are at Setia Alam with a GDV of RM292mil, Setia EcoHill with GDV of RM204mil, Setia EcoHill 2 (RM294mil), Setia Eco Park (RM147mil), Setia Eco Glades (RM67mil), Setia Eco Templer (RM73mil), Setia Sky Seputeh (Tower B) (RM478mil) and KL Eco City (RM615mil).
“The group’s prospects going forward remain positive with total unbilled sales of RM7.84bil, anchored by 30 ongoing projects and strong landbank of 2,080.48ha with a total GDV of RM75.72bil as at March 31, 2017,” added Khor.
SP Setia achieved a record pre-tax profit of RM1.18bil for the 12-month ending Dec 31, 2016, on the back of revenue of RM4.95bil.
There were no comparison figures as it had changed its financial year to Dec 31 from Oct 31.
At the AGM on Thursday, the company has obtained its shareholders’ approval for a final dividend of 16 sen, bringing total dividend paid for the year to 20 sen. - Bernama
