S P Setia records RM2.8b sales in 3QFY17, plans launches with total GDV of RM2b in 4Q

PETALING JAYA (Nov 9): S P Setia Bhd has achieved RM2.82 billion worth of sales for the first nine months of FY17 ended Sept 30, 2017.

The property developer announced today that its local projects and international projects contributed 59% or RM1.66 billion and 41% or RM1.16 billion of the total sales, respectively.

The sales secured locally were largely from the central region with RM1.17 billion, whereas southern and northern regions combined contributed RM495.6 million.

International project Sapphire By The Gardens in Melbourne, Australia continued to outperform with a strong take-up rate of 83% amounting to RM871.7 million after only less than four months since its launch.

The Battersea Power Station project in the UK contributed an effective share of RM149.2 million whereas projects in Singapore and Vietnam contributed a total of RM89.4 million in sales.

“Notwithstanding that the total sales achieved are within the set expectation, the local market remains subdued, and the underlying demand is only strong for selective products and locations.

“However, we are pleased to note that the demand in international markets has picked up, demonstrated by the higher current nine months sales which exceeded last year’s 12-month sales.

“Overall, we foresee a stronger contribution from our international projects for FY17 and remain positive on achieving the sales target of RM4 billion for the current financial year,” said S P Setia president and CEO Datuk Khor Chap Jen.

Khor added that last month was a major milestone for S P Setia as the Battersea Power Station phase 1 that comprises 12 blocks or 865 units were completed.

“Currently, more than 400 proud residents and tenants have already moved into one of Europe’s largest building sites. The constructions of phase 2 and phase 3a are ongoing and on target to be completed in year 2020 and 2021, respectively,” he added.

Moving forward into the remaining months of FY17, the developer will focus on launching mid-range landed properties in the Klang Valley.

In 4QFY17, S P Setia plans to launch projects with a combined GDV of RM2.03 billion in Setia Alam, Setia Ecohill, Setia Eco Templer and KL Eco City.

The company added that the proposed acquisition of I&P Group Sdn Bhd for RM3.65 billlion is expected to complete in 4QFY17, following which I&P Group will become one of its wholly-owned subsidiary.

This translates into an increase of 4,276-acre landbank, bringing S P Setia’s total landbank size to 9,660 acres.

On June 22, 2017, S P Setia entered into a conditional share purchase agreement to acquire I&P Group; in conjunction with the proposed acquisition, the developer has also proposed a fundraising exercise to raise up to RM3.6 billion where approval will be sought from shareholders in an extraordinary general meeting on Nov 16, 2017.

S P Setia remains positive for the entire year with total unbilled sales of RM7.05 billion, anchored by 31 ongoing projects and existing landbank of 5,384 acres with a GDV of RM79.82 billion, as of Sept 30, 2017 and excluding I&P Group’s landbank.