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Property Developers Remain Positive Over UK Businesses

Last update: 29/06/2016

KUALA LUMPUR, June 29 (Bernama) -- Property developers, SP Setia Bhd and Eastern & Oriental Bhd, are still optimistic of the outlook for their businesses in the United Kingdom (UK) following the results of the Brexit's referendum.

In a filing to Bursa Malaysia today, SP Setia said amidst the short-term uncertainty in the aftermath of Brexit, the company was still positive of the long-term prospects of its Battersea project and remain committed to the development of the entire project, which was expected to be fully developed by 2025.

"To-date, we have sold approximately 85 per cent of the 1,661 units launched for Battersea in 3 phases.

"This comprises Phase 1 at 99 per cent, Phase 2 at 90 per cent and Phase 3a at approximately 60 per cent," it said.

Meanwhile, Eastern & Oriental said its properties were located in prime locations that remained very much in demand with positive sales prospects.

"Brexit would not have any negative impact on the total net realisable value (total value of properties less total bank borrowings) of our properties in the UK," it said in a filing to Bursa Malaysia.

At 3.32 pm, SP Setia rose two sen to RM3.03 with 855,700 shares transacted while Eastern & Oriental eased one sen to RM1.63 with 143,200 shares changing hands.

On June 23, the UK held a referendum which saw 51.9 per cent of its citizens voting for the country to leave the European Union, a situation referred to as Brexit.

-- BERNAMA