KUALA LUMPUR: Shares of property developer SP Setia rose to a high of RM3.63 on Thursday – the highest since early 2011 – bucking the overall cautious market on news about its bid for a residential plot in Singapore.
Market talk is that SP Setia is expected to announce a corporate development on Friday.
At midday, it was up five sen to RM3.55 with 497,300 shares done.
On Wednesday, the company confirmed that its unit had submitted a bid for the tender of a residential plot at Singapore’s Toh Tuck Road.
SP Setia International submitted the highest bid - at S$265mil or about S$939 per square foot per plot ratio (psf ppr) for that plot of land, exceeding expectations of property consultants.
Dealers say investors could be interested in this development as property projects by Malaysian outfits in Singapore have in the past largely been in the luxury segment, suggesting higher profit margins for the company.
Just recently, SP Setia group’s president and chief executive officer Datuk Khor Chap Jen was quoted as saying that the group intended to look for potential development sites in Singapore.
According to the Business Times article, a total of 24 bids were submitted for the tender of the residential plot, with the second highest bid coming from Singhaiyi Investments with a bid of S$260.2mil (or S$922 psf ppr) and in third place, Centrex Developments with a bid of S$250.9mil (or S$889 psf ppr).
Year-to-date, SP Setia’s stock has gained more than 11% at the midday close.