SP SETIA MAKES RM2.8B SALES IN 9 MONTHS

KUALA LUMPUR: SP Setia Bhd achieved sales of RM2.82 billion for the nine months of the 2017 financial year.

The property player said local projects contributed RM1.66 billion, or 59 per cent, of the total sales while international projects contributed RM1.16 billion, or 41 per cent.

The sales secured locally were largely from the central region with RM1.17 billion, whereas southern and northern regions contributed a total of RM495.6 million.

As for international projects, Sapphire By The Gardens in Melbourne continued to outperform, with a strong take-up rate of 83 per cent amounting to RM871.7 million.

The Battersea Power Station development in the United Kingdom contributed RM149.2 million while projects in Singapore and Vietnam contributed a total of RM89.4 million in sales.

“Notwithstanding the total sales achieved are within the expectation, the local market remains subdued, and the underlying demand is only strong for selective products and locations.

“However, we are pleased to note that the demand in international markets has picked up, demonstrated by the higher current nine-month sales which exceeded last year’s 12-month sales,” said president and chief executive officer Datuk Khor Chap Jen in a statement yesterday.

He said overall, SP Setia expected a stronger contribution from its international projects and remained positive on achieving the sales target of RM4 billion for the current financial year.

Last month was a major milestone for SP Setia as the Battersea Power Station Phase 1 comprising 12 blocks, or 865 units, were completed.

Currently, more than 400 residents and tenants have moved into one of Europe’s largest building sites.

The construction of Phase 2 and Phase 3a are ongoing and are on target to be completed 2020 and 2021, respectively.

The group will focus more on the launches of midrange landed properties in the Klang Valley.

Given the prevailing market sentiment, it is repositioning the launch of its condominium projects such as Setia Sky Seputeh (Tower B) and bringing forward the launches of more mid-range landed properties.

In the fourth quarter of the 2017 financial year, SP Setia plans to launch projects with a combined gross development value of RM2.03 billion. The notable launches are in Setia Alam, Setia Ecohill, Setia Eco Templer and KL Eco City.

The firm remains resilient with its diversified range of new launches, and the strategy is to launch more of the landed properties in the group’s flagship townships where the underlying demand by owner-occupiers are still favourable.

Prospects for the rest of the year remain positive, with total unbilled sales of RM7.05 billion, anchored by 31 ongoing projects.

SP Setia said the planned pipeline of launches, sustained momentum and strong sales indicated that the group was on its way to achieving the sales target of the current financial year.

However, we are pleased to note that the demand in international markets has picked up...

DATUK KHOR CHAP JEN SP Setia Bhd president and chief executive officer