Setia announced its intention to diversify into other revenue streams.
SHAH ALAM: SP Setia Bhd has achieved a RM564mil deal for its 959.72-acre land parcel in Tebrau, Johor. The transaction, conducted through its subsidiary Pelangi Sdn Bhd, was completed with Senibong Island Sdn Bhd, contributing to an expected profit after tax of RM332mil.
“This successful transaction complements our de-gearing efforts, which are happening according to plan and shall contribute to our future growth. By efficiently managing our capital structure, channelling resources into fast-developing projects, rationalising our cost structure, and directly boosting our bottom line, Setia is better positioned for expansion and long-term sustainability,” SP Setia president and chief executive officer Datuk Choong Kai Wai said.
Setia announced its intention to diversify into other revenue streams through landbank management in industrial development and regional expansion in Vietnam and Australia.
The corporation has also begun the pre-initial public offering (IPO) preparatory work to explore the establishment of a Real Estate Investment Trust (REIT). Setia is expected to showcase a diverse asset portfolio, with retail complexes, office buildings, schools and a convention centre.
“Our strategy to realise the values of our identified land assets has brought us one step closer to an even stronger financial state and supports our efforts to diversify our income base. We remain committed to our ethos of excellence and innovation, driving growth while delivering superior value to our stakeholders,” Choong added.
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