SP Setia plans more overseas ventures

By BUSINESS TIMES

PROPERTY developer SP Setia Bhd plans to enter other countries after its successful foray into the international scene via its first overseas development project in Vietnam.

SP Setia divisional general manager of international business development, Teow Leong Seng, said the firm is in talks with parties in China, India, Pakistan and the Middle East to set up joint partnerships.

“We hope to conclude these talks in five months,” he told reporters after a visit to the firm’s first integrated residential project in Vietnam recently.

He said SP Setia hopes to enter these markets through joint ventures as it will be easier for the firm to get approvals from the local authorities and its partners will better understand the local market environment.

However, Teow did not disclose the potential value of the development projects in the other countries.

On its first township project in Vietnam called “EcoLakes” at MyPhuoc, he said SP Setia has been given an option to develop an additional 1,000ha in the Bing Duong province.

“Our Vietnamese partner, state-owned Becamex IDC Corp, has given us the priority to develop the additional landbank,” he said.

He said, however, SP Setia will focus on its existing project first before deciding on the type of development to be conducted at the additional landbank.

The joint venture entity of SP Setia and Becamex is called SetiaBecamex Joint Stock Company.

As part of efforts to further enhance the attractiveness of the project to potential investors, Becamex is in the midst of constructing a 35km closed highway linking the project with Ho Chi Minh City, the port and international airport, cutting travelling time from an hour to only 30 minutes.

The EcoLakes at MyPhuoc township project, with a gross development value of RM2.1 billion, is located in the Bing Duong province, 40km north of Ho Chi Minh City.

It is located on a 226ha site, in the heart of the 3,700ha MyPhuoc Industrial Park.

“The township is expected to be completed by 2009 but it could be earlier, based on growing demand,” Teow said.

He said EcoLakes at MyPhuoc so far is the biggest integrated project in Vietnam.

The venture between the two companies will build linkhouses, villas, apartments and semi-detached homes, among others.