SP Setia: No plans to buy 3 PNB firms

SP Setia is instead more than happy to form a joint venture with Island & Peninsular, Pelangi and Petaling Garden to develop their landbank

SP Setia Bhd, the country's biggest property developer, said it has no plans to buy the three property companies under Permodalan Nasional Bhd (PNB).

Instead, it will collaborate with Island & Peninsular Bhd (I&P), Pelangi Bhd and Petaling Garden Bhd on land development, its president and chief executive officer Tan Sri Liew Kee Sin said.

SP Setia, in which Liew and the Employees Provident Fund hold a 12 per cent and 15 per cent stake respectively, has kept mum on its plan to acquire the three property companies until now.

"SP Setia will not take a stake or buy over the companies at this moment. We are more than happy to form a joint venture with the companies and develop their landbank," Liew told Business Times after the launch of the group's first low-cost housing scheme at its flagship Bandar Setia Alam in Shah Alam, Selangor on Monday.
SP Setia's total undeveloped land currently stands at 1,959 hectares, inclusive of 223ha in Vietnam.

Liew said the group is looking to buy more land in the Klang Valley, Johor and Penang to expand its landbank.

RHB Research Institute Sdn Bhd had last month said that SP Setia may acquire I&P, Pelangi and Petaling Garden from PNB to increase sales and gain financial backing from the government.

The three property units are reported to have a combined annual sales of more than RM1.31 billion, similar to SP Setia's 2008 figures.

PNB, which has a 32.9 per cent stake in SP Setia, is planning to merge I&P, Pelangi and Petaling Garden to create a large property group.

The research house had said SP Setia could be pulled in to spearhead the merger in view of its strong brandname and market leader position in the local property industry.

"Over the years, SP Setia has gained the admiration of customers and we have many repeat buyers. We are still moving on with business. Our sales are picking up and we are expected to achieve our RM1.1 billion sales target by October 31," Liew said.

By Business Times (by Sharen Kaur)