Results briefing: (From left) SP Setia Bhd deputy president & COO Datuk Wong Tuck Wai, president & CEO Datuk CJ Khor, and executive vice president & CFO Choy Kah Yew at SP Setia's FY2017 mid-year financial results press conference.

KUALA LUMPUR: Sapphire By The Gardens project in Melbourne generated the strongest sales for SP Setia Bhd’s first half of FY2017, contributing 38.6% (RM799mil) of the RM2.07bil total sales.

Comprising a residential tower of 345 apartment units with a gross development value (GDV) of RM1.24bil, Sapphire By The Gardens witnessed a strong take-up rate of 70% during the launch weekend on June 17.

“The strong take up of Sapphire By The Gardens bears testament to the trust the purchasers have

in the Setia brand, and this reinforces the Group’s presence as a prominent property player in

Australia,” said the SP Setia Bhd group president cum chief executive officer Datuk Khor Chap Jen.

The international projects has generated a total of RM996.5mil sales, in which RM197.5mil was contributed by the developments from United Kingdom’s Battersea Power Station, Vietnam and Singapore.

“The RM1.08bil local sales secured were largely from the central region of Malaysia (RM797.3mil), which the southern and northern regions have contributed RM278.9mil.

“The sales of the first half of 2017 showed SP Setia Bhd is on track to achieve its sales target of RM4bil for the current financial year ending Dec 31.

“The sales achieved reflect an increased demand for the group’s projects in the second quarter of FY2017. This is encouraging as it validates the strategy we have adopted,” Khor added.

Moving forward into the second half of FY2017, the group will focus on the local market, especially in the central region.

“There is a strong underlying demand for owner-occupied mid-range landed properties in strategic locations with good infrastructure, secured and self-sustained townships, especially in the Klang Valley.

“Hence, we will be emphasising the launches of mid-range landed properties in the group’s flagship townships of Setia Alam, Setia EcoHill, Setia EcoHill 2, Setia Eco Templer and Setia Eco Glades,” he continued.

On June 22, the group entered into a conditional share purchase agreement to acquire the entire equity interest of I&P Group Sdn Bhd for a cash consideration of RM3.65bil from Permodalan National Bhd and Amanahraya Trustees Bhd, which is at a discount of approximately 39% to the adjusted unaudited net asset of I&P Group of RM6.01bil.

The group has also announced its fundraising proposal to finance the proposed I&P acquisition.

On the international front, the group signed an agreement on June 16 to acquire a 1,714 sq m site of 111 A’Beckett Street, Melbourne, Australia for a purchase price of AUD61mil. This allows the group to launch 632 units of apartments with a GDV of AUD419mil.

“Our outlook on the property market in Australia remains positive, and we will continue to look out for more acquisition opportunities, “he said.