Deal marks its entry into mainland Penang
PETALING JAYA: SP Setia Bhd has won the tender to buy a freehold land measuring about 1,675 acres in Penang for RM620.12mil.
The land purchase marks the property developer’s maiden entry into the mainland of Penang.
“The land is planned for an eco-themed mixed-development township that has a potential gross development value (GDV) of RM9.6bil over a period of 15 to 20 years,” said SP Setia in a filing with Bursa Malaysia.
In addition, the land is surrounded by existing townships, retail malls, medical institute, a university campus as well as a golf course.
The land tender was made through SP Setia’s subsidiary, Setia Recreation Sdn Bhd.
SP Setia has made an earnest deposit payment amounting to RM12.4mil to date, which will form part of the initial 10% of the purchase price, payable upon execution of the sale and purchase agreement.
In a recent report, SP Setia said it aimed to launch RM3bil worth of properties on the Penang island over the next 10 years.
As at Oct 27 this year, the group has undeveloped land bank of 139.9 acres on the eastern side of the island, Tanjung Bungah, Jelutong, Teluk Kumbar and Balik Pulau.
SP Setia has been on the constant lookout for strategic land acquisitions locally as well as overseas to sustainably grow its land bank. As at June 30, 2016, the group has 29 ongoing projects.
Its undeveloped land bank measures 3,805 acres, with total GDV of RM71.5bil.
The group is well-established in the three key economic centres of Malaysia – Klang Valley, Johor Bahru and Penang – with one project in Sabah.
Its international reach now includes Vietnam, Australia, Singapore, China and the United Kingdom.
SP Setia closed 3.7% lower at RM3.16 yesterday, with 1.06 million shares traded.
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