SP Setia confident of achieving targeted revenue from Penang properties

ALTHOUGH the property market is expected to be soft in the coming months, it will be business as usual for the SP Setia group, group chief executive officer and managing director Tan Sri Liew Kee Sin said.

He said there were a few new launches in the pipeline in the coming months.

“The group is confident of achieving its target of RM180mil in revenue from the sale of its properties in Penang for the fiscal year ending October 2009,” he told StarBiz.

“About 50% of the targeted revenue would come from the sale of the Setia Pearl Island properties in Bayan Lepas, comprising the remaining bumiputra units of phase two and the properties of phase three.

“The other 50% will be contributed by the sale of the units of Setia Vista, a project comprising 250 terrace houses, to be launched in the second quarter in Relau,” he said.

“Our target is to generate RM45mil in revenue for each quarter in 2009 from the sale of properties in Penang (from the Setia Pearl Island and Setia Vista schemes),” he said.

The 558 units of Setia Pearl Island’s first and second phases have been sold. The units will be handed over to the purchasers next month.

“For the third phase, which comprises 172 units of super-terrace and semi-detached houses, we have launched and fully sold the super-terrace houses. Some 58 semi-detached houses were launched recently for the third phase,” he said. “The remaining 54 semi-detached units will be launched in the third quarter of 2009,” he said.

This year, SP Setia plans to develop the RM150mil Reflections, a single block of 350-unit condominium scheme within Setia Pearl Island.

“The units, with built-up areas of 1,048 to 1,543 sq ft, will be tentatively priced from RM338,880 onwards,” he said.

Meanwhile, according to the group’s independent geo-technical consultant engineer Tang Heap Seng, the RM1.2bil Setia Pearl Island project sits on 112-acre hillside land that consists of about 70% bedrock, which ensures the stability of the land.

“Using the two-tier development approach, we are able to maintain the developed terrain at a gradient of around 15 degrees. According to the norm, an existing hill slope with a gradient higher than 36 degrees is a cause for concern,” Tang said.

Liew said the two-tier development made it more expensive to develop the infrastructure works and facilities, as it required more entrances and separate internal roads to be constructed.

He added that the group’s approach to managing hillside development was thorough.

“The strategy used encompasses four stages spanning soil investigation, design, construction and post-construction.

“Each stage involves the participation of qualified team members, and is headed and supervised by specialist consultants.

“Designs are cross-checked by an independent checker and a second opinion is sought from another independent specialist,” he said.

“Until today, we have spent about an additional RM1mil on slope protection, which involves the construction of berm drains, turfing and guniting, which uses cement to reinforce the slope,” Liew said.

He said for the project, the group had engaged five geo-technical experts to provide consultation during the construction period. “The group’s technical team, in collaboration with the geotechnical consultants, has been carrying out periodic inspection of the development site since the inception of the project, and will continue to do so after completion.

“All the designs and submissions are ultimately vetted and approved by the local authority and technical departments based on stringent guidelines,” he said.

By The Star (by David Tan)