JB land sale to help S P Setia reduce its net gearing

SP Setia would be using the sales proceeds in other project developments for immediate launches and to repay its borrowings.

PETALING JAYA: S P Setia Bhd’s sale of eight parcels of freehold land measuring 959.7 acres in Johor Baru for RM518.1mil to Scientex Bhd is a positive move, according to research analysts.

In a report, AmInvestment Bank Research said this would enable S P Setia to monetise its undeveloped land bank while allowing the group to focus on existing projects, in line with its cost rationalisation initiatives for better operational efficiency.