SP SETIA PLANS RM6.8B NEW LAUNCHES

CEO says developer set sales target of RM5.65b this year, mainly from local projects

SP Setia Bhd plans to launch RM6.8 billion worth of properties this year. This will comprise RM6.66 billion worth of local launches while international launches will include new phases in Eco Lakes and Eco Xuan in Vietnam totalling RM139 million.

In a statement yesterday, the developer said the local launches would be concentrated in the central region, with four new projects worth RM4.98 billion.

“These are new projects from I&P Group Sdn Bhd’s landbank such as Setia Alaman (an extension of Setia Alam), Setia Mayuri in Semenyih, Setia Tropicale in Salak Tinggi and a newly-acquired landbank in Cyberjaya known as Setia Safiro.

“SP Setia will continue to launch new phases in the group’s established developments, such as Setia Alam, Bandar Kinrara, KL Eco City and Setia Ecohill 2 as well as rebranded projects of Setia Alamsari, Alam Sutera and Kota Bayuemas in the central region,” it said.

SP Setia said launches from the southern region, largely from Setia Tropika, Bukit Indah, Setia Indah, Setia Eco Gardens and Taman Industri Jaya, are planned for RM1.17 billion.

As for the northern region, there will be launches worth RM349.3 million while Aeropod in eastern region are slotted for RM163.5 million.

“In the northern region, there will not be any projects on the island, but Setia Fontaines will launch its maiden residential properties priced from RM330,000 in Penang mainland following the well-received launch of the shop offices last year,” it said.

SP Setia president and chief executive officer Datuk Khor Chap Jen said with the range of offerings, the company has set a sales target of RM5.65 billion for this year.

The developer expects 89 per cent of the figure to be derived from local projects.

“This represents sales growth of 10 per cent and will solidify SP Setia’s position as the leading property developer in Malaysia,” he said.

The group said it expects to perform resiliently against prevailing market challenges, to be helped by an unbilled sales pipeline of RM12.32 billion, 45 ongoing projects and remaining landbanks of 3,850.9ha with a gross development value of RM149.70 billion up to December 31 2018.

SP Setia’s net profit slipped 32.5 per cent to RM670.9 million last year from RM993.7 million recorded in 2017, due to lower revenue contribution from the property development division as many development phases were still at early stages of construction.

Revenue dropped 16.2 per cent to RM3.59 billion last year, from RM4.29 billion in 2017.

The group achieved RM5.12 billion sales, surpassing its target of RM5 billion, of which 80 per cent were contributed by local projects and the rest international projects.