S P Setia

KUALA LUMPUR (Nov 16): S P Setia Bhd will focus on enhancing the value of the 4,276 acres of land in the Klang Valley and Johor that it stands to inherit from I&P Group Sdn Bhd once its acquisition of the latter is completed this month.

S P Setia president and CEO Datuk Khor Chap Jen said the group will not be aggressively developing the land in the first half of 2018, but would instead be meticulously planning the development in order to add value.

“We will review all the plans that they have in place, and we think we can add more value to the land,” he said. “Some of their pieces of land are in very strategic places and some are in very matured areas such as in [Bandar] Kinrara.

“These are the things we are going to be focusing on in the next few months, and once [the plans are in order] we will push ahead with the execution,” Khor told reporters after the group’s extraordinary general meeting today.

Khor said the group is confident of achieving its RM4 billion sales target for this year, but acknowledged that there is still work to be done.

“There is a lot of work to be done, especially in these last two months,” he said.

On the sales target for 2018, Khor said it is too early to give a specific figure but shared that it would not be set lower than the 2017 target of RM4 billion.

At the EGM, shareholders unanimously approved S P Setia’s proposed acquisition of I&P for RM3.65 billion from Permodalan Nasional Bhd (PNB) and Amanahraya Trustees Bhd, and its proposed acquisition of a piece of land measuring 342.5 acres in Bangi for RM447.58 million in cash from Seriemas Development Sdn Bhd, an indirect subsidiary of PNB.

The Bangi land acquisition would bring S P Setia’s landbank to 5,452 acres and together with I&P’s landbank, this would translate into a 78.43% increase in S P Setia’s landbank to a total of 9,728 acres.

S P Setia shares were down 1 sen or 0.29% at RM3.40 as at 3.45pm, with 238,310 shares changing hands. — theedgemarkets.com

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