Local ops to drive SP Setia’s growth

Local ops to drive SP Setia’s growth
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By LEONG HUNG YEE

SP SETIA Bhd's local operations will continue to be the engine of growth for the group over the next few years although the group has ventured into international markets.

Divisional general manager (international business development) Teow Leong Seng said the bulk of the group's revenue would still be derived from its local operations.

“We have just started to enter the overseas market and this will take a while to be reflected in our balance sheet,” he said in a briefing in Ho Chi Minh City.

SP Setia has teamed up with government-linked conglomerate Becamex IDC Corp to develop a RM2.1bil township, EcoLakes at MyPhuoc, in Binh Duong province, 40km north of Ho Chi Minh City.

From left: Housing and Local Government Minister Datuk Seri Ong Ka Ting, Becamex IDC Corp chief executive officer Nguyen Van Hung and Tan Sri Liew Kee Sin looking at the model of EcoLakes at Myphouc in Binh Duong province in Ho Chi Minh City, Vietnam
SP Setia and Becamex IDC signed an agreement last week to set up a joint-venture company, SetiaBecamex Joint Stock Co, to undertake the residential project.

Teow said the group expected the project to start contributing to its bottom line in the next financial year.

The country's biggest property developer with a total market value of over RM6bil intends to seal more deals in Ho Chi Minh as well as make a name for itself in Hanoi, Vietnam.

“We are planning to explore another piece of land about 1,000ha within the Binh Duong province,” Teow said

He added that SP Setia was also exploring opportunities in India, China, the Middle East and Pakistan.

“We are conducting feasibility studies for our ventures overseas. We have been discussing with some potential partners, but it is still at the preliminary stage,” Teow said, adding that the group was always on the lookout for new opportunities.

He explained that SP Setia would probably form joint ventures with strong partners in countries that it intended to penetrate with the group having majority control.

Group managing director and chief executive officer Tan Sri Liew Kee Sin expects the group's overseas revenue to increase tremendously over the next few years.

Liew said the company chose Vietnam for its first overseas project because of the country's strong economic growth, sizeable population and stable socio-political climate.

EcoLakes will feature a wide range of residential properties such as link and semi-detached houses, villas, apartments and condominium units.

“EcoLakes at MyPhuoc, spread over 226ha in the heart of MyPhuoc Industrial Park, is similar to our Setia Eco Park township in Shah Alam. We won the Master Plan category of the Fiabci Prix d’Excellence Awards 2007 for Setia Eco Park two weeks ago.

“We are now bringing this award-winning eco concept to Vietnam,” Liew said, adding that the project was scheduled to be completed within eight years.

According to Teow, the project was expected to start within three to six months or early next year once it received all the necessary approvals.

EcoLakes at MyPhuoc consists of five or six phases with about 10,000 residential units and 80 acres for commercial development.

The township will be surrounded by green lungs such as linear parks, jogging tracks and bicycle paths while the centrepiece of the township would be a man-made beach.

“We are very optimistic that the homes in EcoLakes at MyPhuoc will be much sought after,” Teow said.