Friday, October 19, 2007

SP Setia to go big in commercial properties

SP Setia to go big in commercial properties
Taken from The Star

27 Sep 07


PETALING JAYA: SP Setia Bhd wants to go big in commercial retail properties to take advantage of the strong demand for quality commercial developments in the Klang Valley and other parts of the country.

The property group, which already has a well-established name in the residential sector, is eager to make a name for itself as a serious commercial retail player with the line-up of interesting projects.

Group managing director and chief executive officer Tan Sri Liew Kee Sin is excited about the prospects for the commercial sector and is seeking potential partners, including those from overseas, to undertake projects.

The biggest project on the drawing board is Setia City in the company's 2,524-acre Setia Alam township in Shah Alam.

The mega commercial project on 150 acres will have office towers, recreational destinations, retail malls and residential components.

Tan Sri Liew Kee Sin
Liew said SP Setia was working with a panel of architects and consultants to develop an iconic development in Setia City.

“As an eco-themed development, it will be energy saving with avenues to generate its own electricity for self sustainability,” he added.

The project, with an estimated gross development value of at least RM10bil, will take five to 10 years. Construction is scheduled to start in the first half of next year.

To kick-start the development, SP Setia has identified Sydney-based Land Lease Australia as its partner to undertake the development of a retail mall.

The mall, on 40 acres, would initially have a gross lettable area of 500,000 sq ft, which could later be expanded to 1.5 million sq ft. It will take two years to complete.

Next on the list is Setia EcoCity in the Iskandar Development Region in Johor. The project, to be developed on 80 acres, is scheduled to kick off in 2009 for completion in five years.

“These two projects will establish SP Setia as a serious commercial property developer and widen the company's earning base in the coming years,” Liew said.

The company is also eyeing a number of commercial retail projects in the Klang Valley, including Kuala Lumpur. These projects are expected to start within two years.

SP Setia also has other ongoing commercial projects in the Klang Valley, including the RM167mil Setia Avenue shop-offices in Setia Alam and the RM800mil Setia Walk in Puchong.

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