SHAH ALAM: Property developer SP Setia Bhd, which is targeting sales of RM4bil for its current financial year ending Dec 31, 2017, expects to maintain that target next year.

President and CEO Datuk CJ Khor said the acquisition of developer I&P Group Sdn Bhd would help “create more value” for the group.

“We will not do less than this year,” he said in a press conference after SP Setia’s EGM today.

Khor said both companies will be spending the next few months reviewing its ongoing projects.

Shareholders approved the acquisition of sister company I&P Group Sdn Bhd for RM3.65bil in cash, which will enable SP Setia to almost double its landbank and fast-track its expansion plans.

The purchase consideration was arrived at on a willing buyer-willing seller basis after taking into consideration I&P’s adjusted unaudited consolidated net assets of RM6.01bil.

The I&P group, a township developer, has a landbank of about 4,276 acres located in the central part of Klang Valley and Johor Baru. Acquiring I&P will boost the SP Setia group’s landbank by 83% to 9,417 acres.

SP Setia’s net profit in the third quarter ended Sept 30, 2017 jumped 89% to RM253.22mil from RM134.07mil a year ago, spurred by higher contributions from its property development division.

Revenue in the third quarter however dropped to RM842.49mil from RM1.26bil a year earlier, weighed down by lower earnings from its property development and construction segments.

For the nine-months period ended Sept 30, 2017, SP Setia’s net profit increased to RM494.72mil from RM383.24mil in the previous corresponding period, while revenue dropped to RM2.58bil from RM3.19bil a year earlier.

The group achieved sales of RM2.82bil for the nine months ended Sept 30, 2017.