S P Setia's foray into Australia shows positive results

KUALA LUMPUR: S P Setia Bhd has sold 70% of its first project in Australia after a three-day preview here.

"We are overwhelmed by the strong support shown by Malaysian property investors for our maiden Australian venture," said president and CEO Tan Sri Liew Kee Sin in a statement.

"The sales achieved for the first tower over the weekend preview place us in a good position to commence work very shortly on the project. We will also be expediting plans to launch the second tower, hopefully within the next few months," he said.

The property group sold 203 units out of 291offered to the public in the first phase of its Fulton Lane project, amounting to A$112 million (RM358.51 million). The project comprises a predominantly residential development in the northern heart of Melbourne's central business district.

Phase 1 of Fulton Lane, a 28-storey tower, comprises apartments ranging in price from A$370,000 for a 485 sq ft one-bedroom unit, A$515,000 for two bedrooms at 645 sq ft to A$1.05 million for three-bedroom units at 1,227 sq ft.

This project is part of S P Setia's regional expansion. It has already embarked on projects in Vietnam and Singapore and it is exploring opportunities in China.

During a recent interview with The Edge weekly on its Australian property venture, S P Setia predicted a profit margin of 20% from its A$470 million.