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Friday, September 10, 2010

SP Setia unit buys land in Johor for RM169mil

KUALA LUMPUR: SP Setia Bhd’s wholly-owned subsidiary, Setia Indah Sdn Bhd, has purchased 259.10 acres in Tebrau, Johor Baru, for RM169.3mil cash.

In a filing with Bursa Malaysia yesterday, SP Setia said its subsidiary had entered into a conditional sale and purchase agreement with Kelana Ventures Sdn Bhd to acquire the land. It said the purchase price would be funded from internally-generated funds and/or external borrowings. The acquisition is expected to be completed by financial year ending Oct 31, 2011.

SP Setia said the acquisition would replenish Setia Indah’s land bank and enable the group to benefit from the strong branding it has achieved in that locality.

“It is also in line with the group’s wider strategy of continuing to acquire strategically located prime land in Johor Baru,” the company said. Based on a preliminary feasibility study and revised layout plan, which is subject to the approval of the relevant authorities, the proposed development is expected to have a gross development value of RM1.5bil and is expected to commence by end-2011 and span over a development period of about eight years.

“It is currently too preliminary to ascertain the total development cost, the expected completion date of the development and the expected profits to be derived from the development of the land,” SP Setia said.

By The Star

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