S P Setia plans to utilise its land bank in Setia Alaman to develop industrial-based business parks
Gearing up for green industrial estate in the next financial year
It has indeed been a busy year for S P Setia Bhd. Having celebrated its 50th anniversary this year, the award-winning developer has grown leaps and bounds with its latest on-going product launches, brand rededication and focus on green industrial and international developments in the coming financial year.
Its chief operating officer Datuk Zaini Yusoff shared: “We are steadfast in becoming the leader of sustainable communities and innovative lifestyles with our live, learn, work and play philosophy. Our goal to create sustainable communities has driven us for the past 50 years and remains at the core of everything we do.”
He added that the group’s strategic pillars are industrial expansion, land bank management, regional growth and potential REIT-able assets. S P Setia appears sanguine about the market outlook.
“We are positive in our outlook for this financial year and will continue to leverage on our diversified portfolio to achieve our sales target of RM4.40 billion.”
“Our main focus will be on property development, with products such as township developments, eco-themed developments, industrial parks, integrated developments and other niche developments,” Zaini said.
Duta Villa is one of S P Setia's last remaining offerings in the mature township of Setia Alam
Elaborating on the strategy forward, he shared: “In terms of our investment properties and potential REIT (Real Estate Investment Trust), we are executing ongoing work with the investment banks to assess asset readiness, fine-tuning asset evaluation and selections, review of IPO requirements, and value enhancement strategies. This potential REIT plan is part of S P Setia’s long-term strategy in moving towards an asset-light model.”
As of 2Q2024, the group has a total landbank of 5,261 acres equivalent to RM106.69bil in gross development value (GDV) across 41 developments, with presence in six foreign countries namely Australia, Vietnam, China, Japan, the United Kingdom and Singapore. In the same review period, S P Setia has accumulated RM2.30bil in sales and RM2.97bil in revenue.
Brand rededication, latest launches
The group’s purpose, pillars and efforts have evidently contributed to its brand loyalty and the performance of its latest launches. In conjunction with its 50th anniversary this year, S P Setia has successfully launched its Shaping Spaces That Shape Us All brand rededication, its annual Setia4Malaysia Unity Run, Setia HOMEFEST, and have relaunched its SetiaGo App for its Citizen Setia supporters and loyal customers.
Meanwhile, with its clearing of completed inventories during the year, S P Setia launched new phases in its ongoing developments worth a total of RM3.56bil. “With our strategy to accelerate our township developments in Central and Southern regions such as Setia Alam, Setia AlamImpian, Setia Eco Park, Setia Fontaines, among others.
“The latest phases that we launched in FY2023, named NADI at Setia EcoHill 2, Bloc 7 at Setia Eco Glades, Bayu Avenue at Setia Bayuemas, Irama Villa III at Bandar Kinrara, Impian Prisma 3 at Setia AlamImpian and Calliandra at Setia Tropika, are mostly almost 100% taken-up,” said Zaini.
Moving forward, S P Setia plans to launch its first phase of Setia Federal Hill. Spanning 2.67 acres and comprising two residential towers in Jalan Bangsar, Kuala Lumpur, the development is targeted to be rolled out next year.
On the international front, S P Setia has just launched its latest ATLAS Melbourne earlier this month. Situated along 383 La Trobe St, ATLAS Melbourne comprises 839 units and a GDV of AU$980mil (approximately RM2.8bil). “The development has garnered encouraging response, and we have long-term plans to develop our other key projects in Australia.”
S P Setia’s RM220mil land acquisition at 20 Atchison Street in St Leonards last year is also in the pipeline. Strategically positioned in North Shore, Sydney, the land is planned for residential development with an estimated GDV of AU$236mil (approximately RM708mil).
“We will continue with our development plans in Vietnam and Australia, where for the latter, we expect to maintain the momentum of its existing presence in Australia, which will be strengthened through the development of the newly acquired Sydney land,” said Zaini.
The newly-launched ATLAS Melbourne comprises a total of 839 apartment units
Sustainability framework
S P Setia remains committed to its sustainability framework and extends its frontier into the industrial estate sector for the financial year. Aligned with its core values, S P Setia has seamlessly integrated sustainable practices, such as energy-efficient designs and eco-friendly landscaping, into its projects to minimise environmental impact.
In its upcoming pipeline, the group has plans to utilise its land bank in S P Setia Alaman in Shah Alam, Setia Fontaines in Penang and Tanjung Kupang in Johor (which altogether is approximately 956 acres), to develop industrial-based business parks. So far, Setia has recorded an impressive RM1.3bil in sales specifically for its properties with green features between 1H2023 to 2Q2024.
Zaini stressed that S P Setia remains committed to achieving its Setia Green Roadmap goals, in addressing climate change, and in prioritising biodiversity “as we look into strategically utilising our land banks in Setia Alaman, Setia Fontaines and Tanjung Kupang to develop industrial-based business parks.” The industrial parks are expected to bring in consistent revenue for the group for the next five to eight years.
"Our main focus will be on property development, with products such as township developments, eco-themed developments, industrial parks, integrated developments and other niche developments.” - S P Setia chief operating officer Datuk Zaini Yusoff
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