S P Setia enters Singapore with redevelopment of old flats

KUALA LUMPUR: S P Setia Bhd is making its maiden venture into Singapore. The developer has proposed the purchase of 27 strata units in Leong Bee Court for S$65 million (RM159 million) with the plan to redevelop the property, currently comprising flats, into residential apartments.

In a filing with Bursa Malaysia on Thursday, Apr 14, S P Setia said its subsidiary S P Setia International (S) Pte Ltd has entered into a sales and purchase agreement to acquire the 27 strata units, located at Woodsville Close for S$65 million or S$24 per sq ft of gross floor area.

S P Setia said it planned to redevelop the 0.68-acre piece of land into a multi-storey residential apartment building with an expected gross development value (GDV) of S$130 million.

The development is expected to begin in 2012 and complete in approximately three years.

"However, at this preliminary stage, the total development cost and the expected profit to be derived from the proposed project have yet to be ascertained," it said.

It added that the land is located within a matured residential enclave with access to amenities such as the North East MRT Station, the Pan Island Expressway (PIE) and the Central Expressway (CTE) and schools.

Earlier this week, S P Setia president and CEO Tan Sri Liew Kee Sin said the company was planning to launch a project in Singapore by year-end, after marking its foreign ventures in Vietnam and Melbourne.

Apart from the Singapore redevelopment, S P Setia would also be launching its Fulton Lane residential development in Melbourne, Australia with a GDV of A$450 million (RM1.4 billion) later this year.

S P Setia rose one sen to close at RM6.50 on Thursday with 3.7 million shares traded.