SHAH ALAM: S P Setia Berhad today announced that for the ten months ended 31st October 2016, the Group achieved a total sales of RM2.40 billion. The sales achieved reflect an increased demand for the Group’s projects in the second half of FY2016.

For the nine months ended 30th September 2016, the Group achieved sales of RM2.05 billion where the local projects contributed 89% and the international projects contributed 11%.

The sales secured are largely from Central region with RM1.43 billion while the Southern, Northern and Eastern regions combined delivered RM386 million in sales and international projects contributed RM232 million respectively.

The strong third quarter sales amounting to RM943 million, is mainly in line with the expectation and the Group foresees a continuing trend for the remaining months in 2016.

“We are satisfied with the performance recorded for this quarter as it shows that the strategies we have adopted are effective. Despite the soft market condition, we observed resilient demand for affordable apartments and mid-priced range properties while demand for condominiums that satisfy the lifestyle needs of the affluent market located in areas that are underserved such as Taman Seputeh, is promising.

With the right strategy and our team’s experiences and expertise spanning the breadth of projects ranging from township developments to integrated developments, affordable housing, niche developments and our signature eco-developments, we are able to customise our launches accordingly to suit market needs,” said Dato’ Khor Chap Jen, President and CEO of S P Setia.

On the local front, projects in the Klang Valley continue to be the major contributor. The launch of 387 units of mid-priced range 2-storey terrace houses in Setia Alam in September 2016 has since registered a solid take-up rate of 85%.

During the same month, Setia Alam also saw an overwhelming crowd of 2,000 potential purchasers queuing for the remaining 200 units of the 730 units De Palma affordable apartments launched under the Rumah Selangorku housing programme.

Subsequently, due to the overwhelming response, a further 737 units of the De Kiara affordable apartments were also opened for sale to cater for these strong demands.

“This bears testament to the product quality and facilities we have put in place for the affordable apartments that had resulted in the preference by the home buyers to choose Setia over others,” he continued.

ViiA Residences was launched in early October 2016 with 326 units of apartments at KL Eco City and two weeks later Setia Sky Seputeh (Tower A), which comprised 145 units of condominiums for the niche and underserved markets in Taman Seputeh was launched.

Both ViiA Residences and Setia Sky Seputeh witnessed commendable take-up rate of approximately 45% and 30% respectively within the month.
“Interest expressed for both ViiA Residences and Setia Sky Seputeh is encouraging as from our observation, the Group expects the take-up rate for these two luxury high rise projects to improve further over the next few months,” Dato’ Khor added.

As for Southern region, the launch of 183 units of 2-storey terrace houses in Bukit Indah, Johor in September 2016 has since chalked up an 80% take-up rate, indicating that the underlying demand is still strong for landed properties in Iskandar Malaysia.

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“On the international front, though there has been renewed interest in Battersea Power Station development due to the weakening of British Pound, the ‘wait-and-see’ approach still lingers as the market awaits for more clarity post-Brexit.

Nevertheless, the transaction secured with Apple to take approximately 500,000 sf of office space in Battersea Power Station lends credence that Battersea Power Station is a great business location and London is still an international business centre. The strength of Apple’s brand name will be a great catalyst to uplift the value of Battersea Power Station,” Dato’ Khor commented.

Over in Australia, Maison apartments at Carnegie, Melbourne were launched in September 2016 and have since achieved a heartening 65% take-up rate of the apartments launched, a commendable feat in view of the tightening measures introduced by the Australian government especially for foreign investors.

In response to the challenging environment ahead, the Group is strategically delaying some of its apartment launches and bringing forward the launches of more mid-priced range landed properties as well as retail shop lots.

The planned launches for the fourth quarter are:

Setia Sky Ville at Jelutong, Penang with 550 units of condominium and GDV of RM465 million;

Setia Alam with 130 units of 3-storey terrace / 3-storey semi-D and GDV of RM137 million;

Setia Eco Park with 52 units of semi-D and GDV of RM115 million;

Setia Eco Gardens with 352 units of 2-storey terrace under the Rumah Mampu Milik housing programme and GDV of RM45 million; and

Setia EcoHill with 80 units of EcoHill Walk retail shop lots and GDV of RM268 million.
The Group remains resilient with its diversified range of new launches, ranging from affordable to up market and landed to condominiums.

On 3rd June 2016, the Group announced a Rights Issue exercise which is expected to raise gross proceeds of approximately RM1.16 billion to fund development activities and expansion plan.

The Rights Issue exercise was approved by shareholders at the Extraordinary General Meeting held on 21st October 2016 and is expected to be completed in the fourth quarter of FY2016.

With a further strengthened balance sheet, this will allow the Group to look out for more strategic land bank to invest in and seize opportunities in this market.

The Group’s prospects going forward remain positive with total unbilled sales of RM8.39 billion, anchored by 31 ongoing projects and effective remaining land bank of 3,595 acres with a GDV of RM70.65 billion as of 30th September 2016.