SP Setia forays into luxury condo market
Posted on | April 13, 2007 | No Comments
By BUSINESS TIMES
SP SETIA Bhd has made its first foray into the luxury condominium market with the proposed acquisition of two parcels of prime land in Kuala Lumpur, earmarked for the development of a new product brand named “Setia Residences”, with an estimated gross development value (GDV) of RM500 million.
Its subsidiary Exceljade Sdn Bhd yesterday bought the two parcels from Swasta Setia Holdings Sdn Bhd and Swasta Setia Properties Sdn Bhd for RM51.3 million and RM26.5 million cash respectively.
The lands enjoy dual frontage of Jalan Tun Razak and Jalan Raja Muda Abdul Aziz in Kuala Lumpur.
Neighbouring office buildings include Menara TH Selborne, Yayasan Selangor, Menara Celcom and Marinara Building while the Petronas Twin Towers and Kuala Lumpur City Centre is 1.8km away and within clear view from the site.
SP Setia group managing director Tan Sri Liew Kee Sin said the move to introduce a high-end luxury condominium brand is synergistic with its business strategy to tap into the robust demand for such products in the city centre.
“We have developed three highly successful product ranges, namely our Setia, Eco and Duta brands offering integrated townships, eco sanctuaries and exclusive enclaves respectively.
“Hence, the time is ripe for us to seize the upswing in the booming high-end market and embark on our maiden luxury high-rise project to further deepen our share of the high-end market,” he said in a statement.
Liew said the recent repeal of the Real Property Gain Tax and easing of Foreign Investment Committee ruling has augmented the attractiveness of Malaysia’s properties, especially to foreigners, adding that this trend bodes well for SP Setia’s new high-end project.
Meanwhile, SP Setia also plans to acquire a 70 per cent stake in Kemboja Mahir Sdn Bhd (KMSB) for RM2.3 million cash. The acquisition will lead to the commercial development of signature offices called “Setia Nexus 1″ in the Southern Klang corridor. The project’s estimated GDV is RM130 million.
KMSB also owns land opposite the Crystal Crown Hotel in Klang, which has been approved for mixed development comprising condominiums, shops and an office tower. To be named “Setia Nexus 2″, the proposed development has an estimated GDV of RM120 million.
Liew said after having firmly established itself on the residential front, the SP Setia Group now intends to actively pursue commercial developments as the new growth driver.
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