S P Setia hits RM2b sales target in 10 months

KUALA LUMPUR: SP Setia Bhd has achieved sales of RM1.95 billion as at Aug 31, 2010 thus achieving its full year FY2010 sales target of RM2 billion with two months to spare before its financial year-end.

The 10-month sales value exceeded the Group’s highest sales value over one financial year of RM1.65 billion recorded in FY2009 by 18%.

A total RM590 million was achieved in the third quarter, bringing the cumulative nine-month sale to RM1.8 billion. Projects that contributed to these numbers include Setia Alam and Setia Eco-Park in Shah Alam, SetiaWalk in Puchong; Setia Sky Residences at Jalan Tun Razak, Kuala Lumpur; Bukit Indah, Setia Indah, Setia Tropika and Setia Eco Gardens in Johor Bharu; as well as Setia Pearl Island and Setia Vista in Penang.

SP Setia’s President and CEO Tan Sri Liew Kee Sin said the Group’s proactive movies in 2009 — aimed at capturing market share in the luxury high-rise and integrated commercial sector while consolidating its lead in the landed residential segment — has bore fruit.

“Despite the financial turbulence, the Group continued to invest substantially in improving both infrastructure and amenities in all our developments,” said Liew. “These bold decisions were the best proof to our buyers that we will keep our promises of creating value for them, whether in good times or bad.”

Key investments completed or began in 2009 included the Tesco Hypermarket in Bukit Indah Johor, the commercial hub of Setia City Connect in Setia Tropika and Setia City Mall in Setia Alam.

Liew explained that there have been significant price increases in all SP Setia properties, even with the withdrawal of some elements of the financial incentives in the 5/95 financial package campaign.

“This has enabled product margins to return to normal levels, the effects of which will be seen from FY2011,” said Liew. “The action taken will also generate higher absolute results per sq ft of land.”

He added that the disposal of a non-core investment property - the Tesco Hypermarket in Setia Alam - will further augment its capacity and commitment to expedite the development of its Setia City commercial precinct in Setia Alam to include not just the Setia City Mall but also offices and other commercial offerings.

The Group will derive future development profits from the sale of commercial lands and or buildings within Setia City, he said.