S P Setia eyes higher sales this year after exceeding RM3.5 bil target in 2016

KUALA LUMPUR (Feb 23): S P Setia Bhd has achieved sales of RM3.82 billion for the financial year ended Dec 31, 2016, exceeding its revised sales target of RM3.5 billion.

President and CEO Datuk Khor Chap Jen said 92% or RM3.5 billion of sales were from local projects, while the remaining 8% were from international projects.

"The central region contributed the most with RM2.64 billion whereas the southern, northern and eastern regions contributed RM859.7 million," he told the reporters at the group’s financial results briefing today.

Its strongest sales performance was achieved in 4Q2016, totalling RM1.78 billion.

As market sentiment has improved, the company is targeting RM4 billion sales this year with 77% of the sales expected to come from local projects, he said.

S P Setia is planning to launch multiple projects, local and overseas, with an estimated gross development value (GDV) of RM5.4 billion.

Khor noted that the company will continue to launch more mid-priced landed properties and affordable housing projects to cater to buyers' strong demand on these properties.

Meanwhile, S P Setia deputy president & chief operating officer Datuk Wong Tuck Wai said the company plans to launch the final tower (Tower B) of Setia Sky Seputeh in Kuala Lumpur as well as the transit-oriented development Trio in Bukit Tinggi, Klang, this year.

Setia Sky Seputeh will have a GDV of RM418 million, while Trio carries a GDV of RM214 million and will be launched this weekend.

Beyond Malaysia, S P Setia will be launching two new projects in Melbourne's newly acquired sites in Prahran and Exhibition Street.

The development in Prahran will have a GDV of RM120 million and is slated to launch next month; the estimated GDV for the Exhibition Street project is RM1.55 billion and it is expected to be launched in the second half of this year.

In London, Khor noted that two out of the 12 blocks of Battersea Power Station's phase one have been completed and handed over in stages starting December last year.

The remaining blocks will be completed and handed over by the second quarter this year.

"We are bullish about the overseas property markets and anticipate over 20% of our sales to come from overseas.

"Australia's outlook remained bullish. For London, we have seen renewed interest from buyers. Meanwhile, we are also looking at opportunities in Singapore as we expect the government to relook their tightening measures," he explained.

Currently, the company has an unbilled sales of RM8.25 billion.

As at Dec 31, 2016, S P Setia has 30 on going projects and 5,218 acres of undeveloped landbank which could sustain the company's development for 15 to 20 years.