SP SETIA is expected to reach its total RM4bil sales target by December 31, 2022 (FY2022), thanks to a strong contribution from high-impact international projects and stronger local sales.
The practical completion of the Group’s international businesses in the UK, Singapore and Australia will see the bulk of cash flow and earnings return in financial year 2023, making the next two years the main profit years for SP. Setia regarding international profits.
These projects are the Daintree Residence in Singapore, UNO Melbourne and Sapphire by the Gardens in Australia, and Battersea Power Station in London.
Each of these projects is located in prime central business districts and offers thoughtfully designed spaces with coveted amenities while embodying the “20-Minute Neighborhood” – a living local concept in which most daily needs are met. less than 20 minutes from home. It is a concept particularly well suited to rapidly changing environments and consumer sentiment.
“Demand is constant in established places like London, Melbourne and Singapore, where property prices have always had an upward trend,” said SP Setia Chairman and CEO Datuk Choong Kai Wai. .
“House price growth in central London, for example, is steadily increasing as the luxury property market recovers.
“In Melbourne, demand for quality apartments in good CBD locations is starting to rise again as international students return and full migration resumes.
“In fact, the rental market has rebounded strongly, with demand outpacing declining supply. Strong upward momentum is clear in these markets as offices reopen and their economies return to pre-pandemic health. »
SP Setia’s property sales not only gained momentum overseas, but also in Malaysia.
Local projects account for RM1.38 billion or 83% of the total RM1.67 billion of sales secured in the first half of FY2022.
“Quietly, the local dynamic is strengthening. We have seen an improvement in sales and the clearance of our inventory completed. With this, we have accelerated development, especially for landed residences in our established townships.
“Based on our continued business momentum, we are on track to achieve our set sales target of RM4bil by the end of the year,” Choong said.
Range of offers
A post-pandemic Malaysia is bringing positive tides for the retail sector and SP Setia is poised to capitalize on its recovery with its retail portfolio, namely Setia City Mall.
Commercial developments generate recurring revenue for the Group, making it an essential segment of any successful real estate organization.
Further bolstering its range of offerings, SP Setia is venturing into the lucrative industrial park space.
The Group has partnered with a leading industrial player and signed a formal agreement to transform 161 hectares of freehold land in Setia Alaman, Kuala Lumpur, into a mix of industrial and commercial assets with gross development value (GDV) potential of RM3bil. This project is expected to be launched by mid-2023.
“Given its strategic location near Port Klang, we expect a strong response from local and international investors.
“As it stands, we are already responding to inquiries about this project,” Choong says.
Since its incorporation in 1974, SP Setia has been a household name in the property development industry.
The Group is recognized as one of the leading listed property players in Malaysia with a portfolio that encompasses townships, eco-sanctuaries, luxury enclaves, high-rise residences, commercial and retail developments.
SP Setia is the only Malaysian developer to have received 15 FIABCI World Gold Prix d’Excellence Awards from the International Federation of Real Estate (FIABCI), including the 14th and 15th wins in 2022, and 14 FIABCI Malaysia Property Awards to date.
In 2020, SP Setia was ranked #1 in the Edge Malaysia Top Property Developer Awards for a record 13th time – the only developer to achieve this feat since the awards were established.
The Group is well established in Malaysia’s three key economic centers – Klang Valley, Johor Baru and Penang – and has a project in Sabah.
Its international reach now includes six countries: Vietnam, Australia, Singapore, China, the United Kingdom and Japan.