S P Setia buys 342.5 acres of land from PNB

KUALA LUMPUR (April 14): S P Setia Bhd is buying a 342.5-acre site in Bangi, Selangor, known as Bangi Estate, from Permodalan Nasional Bhd (PNB) for RM447.58 million or RM30 psf.

The property developer has entered into a conditional sale and purchase agreement with PNB subsidiary Seriemas Development Sdn Bhd to acquire the land for the purchase price of approximately RM447.58 million, plus a share of the future profit before taxation from the development of the land, up to a maximum of RM3 psf.

The signing ceremony for the deal was held today, in conjunction with the signing of a non-binding Memorandum of Intent between S P Setia, PNB and Amanahraya Trustees Bhd (as trustee for Amanah Saham Bumiputera) to facilitate the acquisition of the entire equity interest in I&P Group Sdn Bhd by S P Setia.

“We hope to seal everything within a few months,” S P Setia president and CEO Datuk Khor Chap Jen told reporters after the ceremony today.

Located near Bandar Baru Bangi, Kajang and Semenyih, the Bangi land is approximately 30km southeast of Kuala Lumpur city centre and 25km from the Kuala Lumpur International Airport (KLIA). It is accessible via Kajang-Seremban Highway (LEKAS), North-South Expressway (PLUS) and South Klang Valley Expressway (SKVE).

“The land is also located within a 5km radius from our existing two mixed development townships, namely Setia Ecohill and Setia Ecohill 2,” said Khor.

He added that if one were to combine the Bangi land and the remaining landbank of I&P Group Bhd in Semenyih, Bangi and the adjacent areas, the total will come up to more than 4,000 acres.

The Bangi land is planned for a township development comprising residential properties such as apartments, linked houses and cluster houses and commercial components like shops and shop offices. The estimated gross development value is about RM2.74 billion.

“With our good track record, we are confident of developing the Bangi land into another success story,” said Khor.

He pointed out that S P Setia is looking to expand in the next few years to become one of the largest property developers in Malaysia.

“We aspire to become one of the component stocks in the FTSE Bursa Malaysia KLCI Index, not only do we want to reach there, we want to stay there. So we have started looking for projects,” he said, adding that the company has also been acquiring land in Australia, Singapore and Penang.