SP Setia optimistic of meeting RM5bil sales target
This will be backed by sustained momentum and strong sales
PETALING JAYA: SP Setia Bhd is optimistic of meeting its RM5bil sales target for the financial year ending Dec 31, 2018, backed by a sustained momentum and strong sales achieved to date.
The group’s prospects remain positive with total unbilled sales of RM7.95bil, anchored by 46 ongoing projects and remaining land bank of 9,586 acres with a gross development value (GDV) of RM139.72bil as at March 31.
For the first quarter ended March 31, SP Setia secured sales of RM1.11bil, with local projects contributing RM635.6mil or 58% of total sales while international projects contributed RM469.1mil or 42%.
SP Setia president and CEO Datuk Khor Chap Jen said the RM1.11bil sales were achieved despite the softer market sentiment.
“The sales achieved were within expectations and validates the strategy SP Setia has adopted for the local market in rolling out more mid-ranged landed properties in our established townships,” he said in a statement.
The group also announced a net profit of RM61.49mil for the first quarter on the back of a revenue of RM655.5mil.
Its upcoming major launches in the second quarter onwards will be in the Klang Valley, with planned major launches in Setia Alam, Setia Ecohill 2, Setia Eco Park, Setia Eco Glades, Setia Alamsari and Alam Impian.
In the southern region, the planned major launches are in Taman Pelangi Indah, Setia Eco Gardens and Setia Tropika.
In the northern region, the group will launch the much anticipated Setia Fontaines, the new lifestyle development in the northern part of Seberang Prai.
On the international front, its Daintree Residence condominium will be making its debut at Toh Tuck Road, Singapore, where 327 units with a GDV of S$480mil (RM1.42bil) is slated to be launched in the third quarter of financial year 2018.
On April 13, SP Setia completed the acquisition of the remaining 50% equity interest in Setia Federal Hill Sdn Bhd. This will enable the group to own 100% of the 51.57 acres in Federal Hill.
The Federal Hill land is planned for an integrated mixed development with residential and commercial components as well as a retail mall.
With its strategic transit-oriented location at the Bangsar business district, served by the LRT service and also within walking distance to ready transportation hub at KL Sentral, the masterplan has been enhanced to a potential GDV of about RM20.19bil.
“The Setia brand has always been associated with established townships but on top of that, we have also built a strong following for transit-oriented development where the existing integrated KL Eco City has been thriving.
“Targeted to be launched in 2019 and to be developed over 15 to 20 years, the Federal Hill land – with a GDV of about three times the size of KL Eco City – will become one of the group’s key projects, going forward,” said Khor.