Property developer SP Setia Bhd, which currently has 2,160 hectares of undeveloped landbank worth RM30 billion (S$13 billion) in gross development val

Property developer SP Setia Bhd, which currently has 2,160 hectares of undeveloped landbank worth RM30 billion (S$13 billion) in gross development value (GDV), plans to focus on luxury and commercial development projects.

Its group managing director and chief executive officer, Liew Kee Sin, said the company was now shifting from being a purely residential developer to a full-range developer.

Mr Liew said SP Setia had been involved in developing its normal housing and eco-focused branding over the years.

‘This can sustain us for only a number of years. We want to expand to other parts of the business cake. We want to go into condominiums, super high-end brands like bungalows and commercial developments, and venture into Vietnam,’ he said.

The company, he added, planned to sell 15 high-end bungalows valued at about RM30 million per unit next year.

He was speaking to reporters after a signing ceremony for the proposed issuance of RM500 million nominal redeemable serial bonds with 168.15 billion detachable warrants between SP Setia, Aseambankers Malaysia Bhd and United Overseas Bank (Malaysia) Bhd here yesterday.

On overseas ventures, Mr Liew said SP Setia had joined forces with Vietnam’s top state-owned conglomerate, Becamex IDC Corp, to undertake a residential project with a GDV of RM2.1 billion. He said the proposed township involved 200 hectares of land located in Ho Chi Minh City and was expected to be launched next year.

According to him, the project is expected to contribute about 10 per cent of SP Setia’s profit by 2010.

For the RM500 million bonds, SP Setia plans to utilise it to repay existing borrowings and to finance its operating activities, capital expenditure and working capital requirements.

Mr Liew said the bonds would allow SP Setia to diversify its funding sources and lock in fixed interest rate to rebalance the group’s current financing portfolio, which is mainly based on floating interest rates. — Bernama

Source : Business Times - 7 Nov 2007