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SP Setia Bullish On 2H17 With Projects Of RM3 Bln GDV

Last update: 17/08/2017KUALA LUMPUR, Aug 17 (Bernama) -- Property developer SP Setia Bhd is bullish over the local market going into the second half (2H) of the financial year (FY) 2017 with projects of RM3 billion in total gross development value (GDV) slated for launch.

President/Chief Executive Officer Datuk Khor Chap Jen said moving forward into 2H, the group will focus on the local market, especially in the Klang Valley.

Khor is confident that the launch of mid-range landed properties in the group's flagship townships will result in sales of at least RM2 billion in the 2H, and is also optimistic of hitting RM4 billion in full-year sales, as targeted this year.

"To us, the worst is over. We see things ( the local property market) actually moving up. But, whether it will do so strongly or otherwise, depends on sentiment," he told a press briefing on SP Setia's quarterly financial results for the first half of FY2017 here today.

Khor said SP Setia had secured sales of RM2.07 billion for the first-half, as local projects contributed RM1.08 billion, with RM996.5 million derived from international developments.

"There is strong underlying demand for owner occupied mid-range landed properties in strategic locations with good infrastructure, secured and self-sustained townships, especially in the Klang Valley.

"Hence, we will be emphasising the launch of mid-range landed properties in the group\'s flagship townships of Setia Alam, Setia EcoHill, Setia EcoHill 2, Setia Eco Templer and Setia Eco Glades in the next half of FY2017," he added.

He said the mid-range landed properties would be in price range of RM500,000 to RM900,000, with semi-D's of between RM1.4 million to RM1.5 million.

Besides the Klang Valley, the group also plans for new launches at Johor with a GDV of RM91 million.

On the acquisition of I&P Sdn Bhd, Khor said the process of fund raising is on track, and expects the completion of the integration and amalgamation to happen by year-end.

On the international front, he said, while the group considers having met its 20 per cent sales target (from the total full year target), it would have a second batch of new property launches in Melbourne, Australia, in the 2H, with a GDV of RM110 million.

Khor said the group's board had agreed to an interim dividend of four sen per share proposed for the quarter under review.

Meanwhile, on the Battersea Power Station project in London, he said the group is in the process of handing over the first phase, starting this month.

-- BERNAMA