KUALA LUMPUR: SP Setia Bhd plans to launch RM6.8 billion worth of properties in financial year ending December 31, 2019.
This will comprise RM6.66 billion from local launches while international launches will include new phases in Eco Lakes and Eco Xuan in Vietnam amounting to RM139.0 million.
In a statement today, the property developer said the local launches will be concentrated in the central region with planned launches of RM4.98 billion.
“This includes new projects from I&P Group Sdn Bhd’s land banks such as Setia Alaman (as an extension of Setia Alam), Setia Mayuri in Semenyih, Setia Tropicale in Salak Tinggi and newly acquired land banks in Cyberjaya known as Setia Safiro.
“In addition, S P Setia will continue to launch new phases in the Group’s established developments such as Setia Alam, Bandar Kinrara, KL Eco City and Setia Ecohill 2 as well as rebranded projects of Setia Alamsari, Alam Sutera and Kota Bayuemas in the central region,” it said.
SP Setia said launches from southern region is planned at RM1.17 billion, largely from Setia Tropika, Bukit Indah, Setia Indah, Setia Eco Gardens and Taman Industri Jaya.
As for the northern region, the planned launches are RM349.3 million while the planned launches from Aeropod in eastern region is RM163.5 million.
“In the northern region, there will not be any new launches on the island but on the mainland of Penang where Setia Fontaines will launch its maiden residential properties priced at RM330,000 onwards, following the well-received launch of the shop offices in FY18,” it said.
SP Setia president and chief executive officer Datuk Khor Chap Jen said with the range of products offering that the group plans to launch, it has set a sales target of RM5.65 billion for FY19.
It expects 89 per cent of the figure to be derived from the local projects.
“This represents a sales growth of about 10 per cent and will further solidify SP Setia’s position as the leading property developer in Malaysia,” he said.
Underpinned by an unbilled sales pipeline of RM12.32 billion, 45 ongoing projects and effective remaining land banks of 9,516 acres with a gross development value of RM149.70 billion as at December 31, 2018, the group said it expected to perform resiliently against prevailing market challenges.
Meanwhile, SP Setia’s net profit decreased 32.5 per cent to RM670.96 million in FY18 from RM993.7 million recorded in FY17, due to lower revenue contribution from its property development division – as many ongoing development phases are still at early stage of construction.
Its revenue in FY18 drops 16.2 per cent to RM3.59 billion from RM4.29 billion.
The group achieved RM5.12 billion of sales, surpassing its sales target of RM5 billion, of which 80 per cent were contributed by local projects and the rest from international projects.