S P Setia to pass RM5.5 billion sales mark

KUALA LUMPUR: S P Setia Bhd is likely to exceed its RM5.5 billion sales target for the year, having already secured total sales of RM4.67 billion as at June this year.

President and CEO Tan Sri Liew Kee Sin told the media yesterday the company is likely to exceed its target for the year with only a few more months to go before its financial year end on Oct 31 this year.

In fact, the property group exceeded its initial sales target last year, recording RM4.23 billion sales as at October 2012, which was RM230 million ahead of its initial RM4 billion target.

Having 34 ongoing projects, Liew noted that S P Setia has plans to roll out another project in the next two months, which would be located within its Semenyih Township, called Setia Ecohill.

Liew further said the entire 1,700 acre (688ha) tract owned by S P Setia in Semenyih has a total gross development value (GDV) of RM6 billion. It has sold out the 224 units of bungalow lots in that area with a starting price of RM560,990 per lot.

As at June this year, the company has 5,384 acres of undeveloped landbank.

Commenting on the group’s prospects, Liew said, “We have a total GDV of RM70 billion that is yet to be launched.”

“Our hands are full now,” he said after a topping up ceremony yesterday, adding that the group’s unbilled sales to date are RM9 billion as at June this year.

(From left) Liew, deputy president and COO Datuk Voon Tin Yow and executive vice-president Datuk Wong Tuck Wai at the Trigon topping up ceremony.

As for the sales ratio of its local and overseas projects, Liew said 40% of its sales were from overseas projects while the remaining 60% were from the local projects.

Foreign projects contribute about 20% of the group’s profit while the remaining 80% comes from local projects, according to Liew.

“Our revenue from overseas projects such as the London Battersea project can only be recognised in 2016,” he said, adding that as the ringgit weakens, overseas projects could contribute more to its earnings.

The topping out ceremony yesterday marked the final phase of S P Setia’s development in Puchong, said Liew. The luxury residences Trigon, are slated to be completed in the first quarter of 2015.

The 26-storey Trigon has a GDV of RM143 million. It forms the  third phase of the RM1 billion lifestyle development SetiaWalk covering 20.8 acres. Construction began last March.


This article first appeared in The Edge Financial Daily, on August 27, 2013.