PETALING JAYA: Property developer SP Setia Bhd is expecting higher sales in the coming months to meet its target of RM4bil for this year.
For the first quarter ended March 31, 2017, (FY17) the group posted a 15% decline in net profit of RM105.2mil from RM123.4mil a year ago, on the back of higher revenue of RM940mil, 3.5% higher than RM908mil previously.
SP Setia said that for the first four months of FY17, SP Setia secured sales of RM801mil, a huge jump from the sales it secured between January to March, amounting to RM426.8mil.
“The sales achieved were within expectations, which is consistent with the lower sales typically experienced during the Chinese New Year period and the shorter month of February,” said SP Setia president and CEO Datuk Khor Chap Jen in a statement yesterday.
“We are confident that the market will be pleased with our upcoming launches as we have meticulously crafted offers to suit the needs of today’s property buyers,” he added.
He said during the first quarter, SP Setia launched properties with GDV of RM571mil.
SP Setia has targeted to launch a slew of projects in Malaysia and Australia with estimated GDV of RM4.5bil in 2017.
The upcoming launches for this year include Setia Alam (GDV: RM292mil); Setia EcoHill (RM204mil); Setia EcoHill 2 (RM294mil); Setia Eco Park (RM147mil); Setia Eco Glades (RM67mil); Setia Eco Templer (RM73mil); Setia Sky Seputeh (Tower B) (RM478mil) and KL Eco City (RM615mil).
The others are Setia Seraya Residences (RM278mil); Setia Tropika in Johor (RM123mil); Setia Business Park II in Johor (RM74mil); Aeropod in Sabah (RM177mil); Prahran in Melbourne, Australia (A$38mil) and Exhibition Street in Melbourne (A$478mil).
As at March 31, SP Setia has total unbilled sales of RM7.84bil, anchored by 30 ongoing projects.
SP Setia is currently in the midst of taking over I&P Group, which would enhance the group landbank significantly.
SP Setia said as at March 31, it has remaining landbank of 5,141 acres with a GDV of RM75.72bil, while I&P has 4,263 acres of landbank.
“Upon successful completion of this acquisition, besides significantly increasing our prime land banks in Central Klang Valley and Johor Baru, we will be able to enhance and unlock the value of the synergy between Team Setia and I&P Group by delivering the best team, with the right expertise in one synergised approach.
“Together we are bigger, stronger and more capably positioned to offer properties and services that meet the needs of all of our valued customers,” Khor said.
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