SP Setia’s prospects stable on strong unbilled sales

Green development: With a GDV of over RM7bil, KLEC is designed based on the pillars of integration, connectivity and sustainability. It comprises prime commercial offices, retail outlets, luxury residential towers and a chic business class hotel.

PETALING JAYA: SP Setia Bhd’s prospects are expected to remain positive, given its strong unbilled sales and focus on mid-range homes.

This is despite the challenging and uncertain outlook for the financial year 2020 (FY20), as the full impact of the Covid-19 pandemic has yet to be determined.

Following the current market conditions, the property developer has revised its sales target for FY20 to RM3.8bil from RM4.55bil.Additionally, SP Setia has unbilled sales amounting to RM9.8bil, which will last the group for the next two years.

According to an analyst, SP Setia’s 8,718-acre land bank as of March 31,2020, is able to cater to any changes in its purchasers’ preference.

The land bank has a gross development value (GDV) of RM138.87bil.

Apart from that, SP Setia has an attractive valuation of less than 0.3 times its FY21 price-to-book value, which is lower than its peer average of 0.4 times.

SP Setia was recently awarded the 12th world gold award for its KL Eco City (KLEC), under the office category of the FIABCI World Prix d’Excellence 2020 Awards.

KLEC, which has a GDV of over RM7bil, is a transport-oriented integrated green mix-development located strategically between Petaling Jaya and Kuala Lumpur.

It comprises prime commercial offices, retail outlets, luxury residential towers and a chic business class hotel.

In a statement, SP Setia president and CEO Datuk Khor Chap Jen said the award reaffirmed SP Setia’s efforts in delivering innovation and quality in property development, on top of distinguishing KLEC from its competitors.

“Our vision for KLEC was to create a world-standard, mixed-use development with excellent interconnectivity that will attract many to ‘livelearnworkplay’ in this city-within-a-city.

“KLEC is designed to revolutionise traditional expectations of work through quality and eco-sustainability.

“The development is set to raise the bar on corporate, boutique and strata offices; empowering people through smart connectivity, cutting-edge technology and environmental-consciousness, ” he said.

The FIABCI World Prix d’Excellence 2020 Awards recognise projects that best embody excellence in the real estate disciplines in its creation.

It is awarded by an international panel comprising top real estate professionals and experts based on overall merit and not only on the aesthetics, functionality or size.

Separately, SP Setia’s Setia EcoHill 2 has recently won the gold award for EdgeProp-ILAM Malaysia’s Sustainable Landscape Award 2020.

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