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Thursday, April 1, 2010

Strong demand boosts SP Setia sales

KUALA LUMPUR: SP Setia Bhd sales hit RM900mil in under five months in the current financial year ending Oct 31.

President and chief executive officer Tan Sri Liew Kee Sin attributed the performance to the strong underlying demand for good properties, fuelled by an increasingly confident business and consumer sentiment as well as highly supportive financial sector.

“This achievement clearly shows we are on track to meet the sales target of RM2bil for the financial year,” he said at the sidelines of Invest Malaysia 2010.

For the first quarter ended Jan 31, SP Setia posted a net profit of RM38.2mil on revenue of RM363.9mil.

“We’ll be the first Malaysian property company to hit RM2bil sales. We’re trying to push the limit higher,” Liew said, adding that sales were recognised only when the sales-and-purchase agreement was signed.

He also said its sales were cyclical and the second-quarter performance may not be as “fast” (good).

To a question, he said he expected an increase in mortgage rates this year.

Meanwhile, Liew said the company was keen to bid for the parcels of government land that would be tendered out for development by the private sector as announced by Prime Minister Datuk Seri Mohd Najib Tun Razak.

He said the company was interested in pursuing such opportunities along with other strategic collaborations with government-linked or government holding companies.

“We welcome the Government’s move to monetise government assets via outright sales or joint ventures,” Liew said.

On the industry outlook, he said: “Malaysia’s property market is sound and resilient.”

He said prospects and opportunities for quality developers were plentiful and would only get better, as income levels rose and good landbank released for sustainable environment development.

Meanwhile, Bloomberg reported that SP Setia planned a real estate project with a gross development value of RM1.4bil in Australia.

It will be on 1.07 acres of land in Melbourne which SP Setia agreed to buy for A$30mil on Monday.

The company expected to build about 850 apartment units and some retail shops there, Liew Kee Sin said in an interview.

By The Star

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