Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Friday, August 14, 2009

SP Setia sees 20pc return from maiden retail project

Property developer SP Setia Bhd expects its maiden retail venture to register a 20 per cent return-on-equity per annum over a 15-year period.

The Setia City Mall, a retail mall in Setia Alam, Shah Alam, will be developed by Greenhill Resources Sdn Bhd, a 50:50 joint-venture company between SP Setia and Lend Lease Asian Retail Investment Fund 2.

The RM450 million mall, which will start construction in two months, is expected to be fully occupied even before it opens in 2012.

"We have secured three anchor tenants and are in talks with 50 retailers. We are confident that by the time the mall is completed, it (the 300 units of retail space) will be fully taken up," said SP Setia president and chief executive officer Tan Sri Liew Kee Sin.
He was speaking to the media after the signing of a RM315 million syndicated banking facility with CIMB Bank, Public Bank and Affin Bank in Shah Alam yesterday.

"This deal, and the commitment from three leading banks, demonstrates that there is no shortage of financial support for good projects," said CIMB's group chief executive Datuk Seri Nazir Razak at the event.

The mall will be developed in two phases. The first phase, which has a gross development cost of RM450 million, will begin construction in two months and to be completed sometime early 2012. It will offer about 700,000 sq ft of net lettable area.

The second phase, which is expected to have a net lettable are of 1 million sq ft, will be developed in five years.

"We will let the first phase stablise first before we start the second phase," Liew said.

Also at the signing ceremony, which was witnessed by Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim, were SP Setia chairman Tan Sri Abdul Rashid Abdul Manaf and Public Bank managing director Tan Sri Tay Ah Lek.

"We expect Setia City Mall to dramatically enhance Shah Alam's shopping and leisure offer and draw customers from a wider catchment area with a population of approximately one million people.

"The mall also reinforces SP Setia's Live Learn Work and Play vision for Setia Alam and Setia Eco Park. These developments which already have over 20,000 new residents are set to expand to over 50,000 by the time the mall opens," said Abdul Rashid.

By Business Times (by Goh Thean Eu)

No comments: