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Thursday, October 29, 2009

SP Setia sees higher sales from abroad

Tan Sri Liew Kee Sin (second from left) exchanging documents with Hangzhou Ju Shen Construction Engineering chairman Hu Bai Fu, witnessed by Datuk Seri Kong Cho Ha (centre). With them are Setia Land (China) Ltd chairman Datuk Beh Hang Kong (left) and Hangzhou Ju Shen business development advisor Xu Yong.

SHAH ALAM: SP Setia Bhd, which has secured its first property project in Hangzhou, China, with a gross development value (GDV) of RM2bil, aims to derive 30% of its revenue and net profit from overseas projects by 2014.

Currently, overseas projects contribute less than 5% to the company’s revenue.

President and chief executive officer Tan Sri Liew Kee Sin said the China project, which comprises residential and commercial buildings including a hotel, would be developed in four phases over five years.

“The first phase, with a GDV of RM500mil, will commence early next year and should take about 2½ years to complete,” he said yesterday.

Liew said this after a joint-venture contract signing ceremony between SP Setia and Hangzhou Ju Shen Construction Engineering Ltd, its local partner in China.

Under the contract, a joint-venture company – Setia Fusheng Property Development Co Ltd – would be formed to undertake the project on 24 acres, with SP Setia having a 55% stake.

Liew said the partnership was akin to a perfect marriage, as both companies shared the same aspirations and values in terms of property development.

“SP Setia will provide the expertise and funds, while our China partner will inject the land,” he said, adding that this could fast track SP Setia’s expansion into the republic.

Liew said SP Setia chose Hangzhou for its first flagship project because the place had many strong points, including a population of nine million, an international airport close by and was fast growing into a commercial hub.

“This is our second venture abroad after Vietnam and SP Setia expects property projects in China to contribute significantly to its bottomline in the future,” he said.

Housing and Local Government Minister Datuk Seri Kong Cho Ha, who witnessed the ceremony, said first-time home buyers (foreign or local) were exempted from tax on capital gain if their properties were proven to be their principal home of residence under the Income Tax Law.

By The Star

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