Kuala Lumpur: SP Setia Bhd is buying a 269.3ha site for RM381.26 million in Ulu Langat, Selangor, to be developed into a township with an estimated gross development value (GDV) of RM4 billion.
The land, which will be acquired by its subsidiary Setia Hicon Sdn Bhd, is adjacent to its current development, the Beranang Land.
"Along with the RM3.5 billion GDV estimated for the Beranang Land, the proposed acquisition therefore offers the group an unrivalled opportunity to repeat the twin project success of Setia Alam/Setia Eco Park in the southern region of the Klang Valley," SP Setia said in a statement to Bursa Malaysia.
The company will fund the land purchase and development project through a combination of internal funds and bank borrowings.
Shares of SP Setia closed unchanged at RM3.89 yesterday.
The land is located in Rinching, midway between the towns of Semenyih, Bangi Old Town and Beranang.
It is about 13km south of Kajang town and 35km south of Kuala Lumpur city centre.
The deal marks SP Setia's second piece of land in the Semenyih-Kajang corridor. On August 12, it announced the purchase of 404 ha in Mukim Beranang. It plans to build starter homes catering to first-time owners and other house buyers.
SP Setia is well-known for its Setia Alam and Setia Eco Park townships in Shah Alam which originated from a single 1,600 ha oil palm plantation bought in 2002.
Setia Alam and Setia Eco Park are now matured townships and property buyers continue to flock to these highly sought after addresses despite the significant increase in prices.
"As such, we have been scouting very hard over the last year to identify suitable land bank in the Klang Valley where we can re-introduce the Setia Alam and Setia Eco Park winning for-mula but with the added benefit of the lessons learnt from our execution of numerous townships not just in the Klang Valley but also in Johor Baru and Penang.
"The group's branding today is also much stronger, which will enable us to garner the high level of initial homebuyer support so necessary in transforming a relatively secondary location into a thriving township," SP Setia president and chief executive officer Tan Sri Liew Kee Sin said.
By Business Times
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