S P Setia expecting higher contribution from overseas projects in FY17

KUALA LUMPUR (May 18): S P Setia Bhd said it expects stronger contribution from overseas projects this financial year ending Dec 31, 2017 (FY17), backed by its developments in Australia and UK.

S P Setia president and group chief executive officer Datuk Khor Chap Jen said the overseas projects are expected to contribute a bigger portion of 20% this year, compared to 8% in FY16.

"This year we are expecting more contribution from our overseas projects. Last year the overseas projects only contributed 8%, but this year we have two new launches in Australia, which we hope will contribute more," he said at a press conference following the company's annual general meeting today.

He said these projects include the A$478 million gross development value mixed-use development at Exhibition Street and the A$38 million project in Prahran, Melbourne.

Khor said the development at Exhibition Street will be launched sometime in the second half of this year, after securing the relevant approvals.

"We are hoping to launch it in the second half, hopefully by July. We are in the final phase of securing one final approval before we launch it," he said.

Meanwhile, on S P Setia's plan to acquire I&P Group, Khor said the group is in the midst of completing the due diligence works, which is expected to be completed within a month's time, with the group to announce further details in the near term.

He added that the group is on track to complete the acquisition before end-2017.

At 2.42pm, S P Setia shares traded unchanged at RM3.63, for a market capitalisation of RM10.42 billion. — theedgemarkets.com

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