KUALA LUMPUR: S P Setia Bhd plans to undertake a mixed residential township development project in Ulu Langat with an estimated gross development value of RM3.5 billion.
The company said on Friday, Aug 12, the project would be carried out on 1,010.5 acres of freehold land which it is purchasing from Ban Guan Hin Realty Sdn Bhd for RM330.13 million or RM7.50 per square foot.
"The proposed acquisition which will be satisfied entirely in cash will not have any effect on the share capital and major shareholders of S P Setia," it said.
S P Setia said the proposed acquisition offered "a good opportunity to tap into strong demand for attractively priced homes by first time owners and other home buyers in the Semenyih-Kajang corridor".
It said the proposed acquisition would enable it to further reinforce and expand its core business by replicating its proven township development model in an emerging growth corridor presently not served by the group's more matured projects in the Klang Valley.
S P Setia said it had established a solid reputation for delivering quality homes within its projects.
It cited its flagship Setia Alam township project in the Shah Alam-Klang corridor has seen the starting price for a standard 20 ft by 70 ft double-storey terrace house more than triple from RM218,000 to RM668,000 in just over seven years.
It pointed out the significant price increase achieved in Setia Alam was underpinned by the substantial investments and enhancements to the infrastructure, connectivity, amenities and overall livability of the township.
On the proposed land which it was acquiring, S P Setia said the terrain of the land is generally undulating and is zoned for mixed housing development.
It said the land was midway between Semenyih, Bangi old town and Beranang. It is 12km south of Kajang town and 25km south of Kuala Lumpur City Centre.