S P Setia still positive on Battersea despite Brexit

KUALA LUMPUR (June 29): S P Setia Bhd is still positive on the long-term prospects of Battersea Power Station and remains committed to the development of the entire project, which is expected to be fully developed by 2025, despite the short-term uncertainty in the aftermath of Brexit.

The property group said in a statement on Bursa Malaysia yesterday (June 28) that to date, the group has sold approximately 85% of the 1,661 units launched for Battersea in three phases.

"This comprises phase 1 at 99%, phase 2 at 90% and phase 3a at approximately 60%," it said.

As phase 1 is scheduled to be completed and delivered on a staggered basis starting from the fourth quarter (4Q) of 2016 to 2Q of 2017, the group expects to recognise part of the profit from phase 1 in this financial year 2016.

"While the profit from phase 1 will be recognised, it will also be reinvested in the development of phase 2 and phase 3, which are expected to be completed in 2020.

"As such, the fluctuation in pound sterling would be confined to accounting effect as profit will remain invested in the project for the longer term," it said.

Last Thursday (June 23), the UK held a referendum on whether to remain in the European Union; 52% of voters chose to leave, unleashing volatility in financial markets worldwide.

At 11.26am, S P Setia rose two sen or 0.66% to RM3.03, for a market capitalisation of RM7.91 billion.

The shares have fallen 14 sen or 4.4% since last Thursday when it closed at RM3.17. — theedgemarkets.com

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