S P Setia to build cultural hub in Bangsar

SHAH ALAM: Leading property developer S P Setia Bhd is looking to create a cultural hub, alongside with other developments on land in Bangsar that currently houses five National Institute of Health agencies.

Speaking to reporters here after the company's AGM and EGM, president and chief executive Tan Sri Liew Kee Sin said this cultural hub will consist of a museum, a people's library and a performing arts centre.

"We will have to complete the 1NIH integrated health and research complex in Setia Alam before we can start developing this Bangsar land. The construction of the parcel in Setia Alam will take three years," he added.

The project is still pending approvals, and Liew said the company hopes to start the project construction in six months.

S P Setia is in talks with the government to be given that 40.22-acre land in exchange for building the 1NIH integrated health and research complex for the Ministry of Health (MoH) on 55.33 acres of land it owns in Setia Alam, Shah Alam.

On another matter, S P Setia locked in sales of RM737 million in the first quarter of the financial year ended Jan 31, 2011 (1QFY2011), giving a good indication for its sales target of RM3 billion for the financial year.

In FY2010, the group registered sales of RM2.31 billion, an increase of 40% from FY2009 record of RM1.65 billion.

In the EGM, the shareholder also approved its proposal for a 15% private placement and a 1:2 bonus issue. The developer hopes to raise between RM1 billion and RM1.2 billion from the placement to fund three new projects and land acquisitions.

The three projects are KL Eco City in Bangsar, Setia City in Setia Alam and Fulton Land in Melbourne, which have a combined gross development value of about RM12.5 billion. The land-swap deal to acquire the 40.22-acre land in Bangsar is part of the land acquisitions.

"Apart from projects which are already in the pipeline, we are still aggressively scouting for good landbank to lock in future growth," he added.