SP Setia bullish on Australia, says interest in London returning

SP Setia bullish on Australia, says interest in London returning

KUALA LUMPUR: SP Setia Bhd, which is targeting RM4 billion sales this financial year ending Dec 31, 2017 (FY17), expects higher contribution from its overseas projects, said its president and CEO Datuk Khor Chap Jen.

“Last year, only 8% came from overseas. This year we are targeting about 20%,” he told reporters at its FY16 results briefing yesterday.
In FY16, the group revised its sales target from RM4 billion to RM3.5 billion and achieved RM3.82 billion sales.

Khor said it is bullish on Australia, while interest in London is returning post-Brexit vote.

SP Setia is also eyeing the Singapore market again, with hopes that the government will review the tightening measures it had put in place previously.

The group plans to launch two projects in Melbourne this year, on Prahran and Exhibition Street, with gross development values of RM120 million and RM1.55 billion respectively.

“For Battersea, we actually see renewed interest and the pound has dropped. London has been more resilient than what people think. We see a lot of interest coming to our sales gallery over there but they are taking their time,” said Khor.

“For Singapore, we are looking at it,” he said, adding that it is open to opportunities in Indonesia.

SP Setia is launching RM5.41 billion worth of properties this year compared with RM4.3 billion in FY16. Projects that were delayed last year will also be launched this year, including the RM214 million TRIO apartments in Klang, to be launched this weekend.

The group posted a net profit of RM808.03 million on the back of RM4.96 billion revenue in FY16. Net profit for the fourth quarter ended Dec 31, 2016, stood at RM424.80 million while revenue was RM1.77 billion.

SP Setia declared a final dividend of 16 sen per share, subject to shareholders’ approval. The full-year payout will be 20 sen per share, amounting to RM569.3 million, or a dividend payout ratio of 70.5%.

On the collapse of the KL Eco City pedestrian bridge, Khor said the investigation is still ongoing, adding that has not affected its progress and cost.

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