KUALA LUMPUR (Nov 13): S P Setia Bhd is planning to launch projects worth RM2.17 billion in gross development value (GDV) over the last quarter of its financial year 2019 (FY2019) ending Dec 31, 2019.

In a media statement today, S P Setia stated that it has achieved RM3.13 billion in revenue and RM508.8 million profit before tax (PBT) for the first nine months of FY2019.

“Amid the challenging landscape of a subdued property market, the strategy is to launch more mid-range landed properties in the group’s flagship townships where the underlying demand by owner-occupiers is still favourable,” said president and CEO Datuk Khor Chap Jen.

The revenue and PBT were contributed mainly by on-going projects in Malaysia as revenue of ongoing overseas projects in the UK and Australia will only be recognised on completion.

Over the same period, S P Setia had secured sales of RM3.07 billion with its international projects contributing RM467 million. The local projects had contributed RM2.6 billion or 85% of the total sales recorded.

For the past nine months, the group has been strategic with its project launches. A combined GDV of RM2.71 billion projects were launched, such as double-storey linked houses in Setia Safiro, Cyberjaya and double-storey semidee homes at Setia Mayuri in Semenyih. Both projects had achieved 100% take-up over a weekend during their launches.

In the remaining months of FY2019, S P Setia plans to launch projects worth a total RM2.17 billion in GDV, bringing the total launches for FY2019 to RM4.88 billion.

The upcoming launches will mostly involve landed properties in established townships of the Klang Valley and Johor Bahru, such as Setia Alam, Setia Eco Hill, Setia Eco Templer, Setia Eco Park, Bandar Kinrara, Alam Impian, Setia Eco Garden and Setia Tropika.

The group will also be launching 2-storey linked houses at Setia Warisan Tropika, the group’s latest township located in Bandar Baru Salak Tinggi, Selangor in mid-November this year.

Given the versatility of the planned launches, the encouraging response to the Home Ownership Campaign and initiatives introduced to promote homeownership, the group remains positive and will work towards achieving its sales target of RM4.55 billion, the developer said.

Anchored by 46 ongoing projects with 8,984 acres of effective landbank remaining and potential GDV of RM143.82 billion, S P Setia’s prospects going forward remain positive with total unbilled sales of RM10.52 billion as at Sept 30, 2019.

News Source: EdgeProp, 13th November 2019.