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
Showing posts with label SP Setia. Show all posts
Showing posts with label SP Setia. Show all posts
Saturday, November 10, 2007
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
By ANGIE NG
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.
Taken from The Star
27 Sep 07
By ANGIE NG
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.
SP Setia inks RM190m deal with M’sian government
SP Setia inks RM190m deal with M’sian government
PETALING JAYA: SP Setia Bhd has inked a RM190.43 million deal with the government for the construction of the new Ministry of Home Affairs complex and quarters in Johor.
In a statement yesterday, SP Setia said the complex, proposed to be constructed within the central business district of its Setia Tropika Township, was expected to increase the value of the remaining undeveloped landbank within the 239ha township.
It said the project would also stimulate and accelerate the development timeline of the commercial hub.
It added that the contract was in line with its commitment to enhance the amenities and facilities of all its townships.
“The board envisages that the presence of the complex will significantly boost the vitality and traffic flow into the CBD, and is set to fast-track the development of the township located in the heart of the Iskandar Development Region,” SP Setia said.
Construction work for the complex is scheduled to be completed by Aug 5, 2010, it added.
PETALING JAYA: SP Setia Bhd has inked a RM190.43 million deal with the government for the construction of the new Ministry of Home Affairs complex and quarters in Johor.
In a statement yesterday, SP Setia said the complex, proposed to be constructed within the central business district of its Setia Tropika Township, was expected to increase the value of the remaining undeveloped landbank within the 239ha township.
It said the project would also stimulate and accelerate the development timeline of the commercial hub.
It added that the contract was in line with its commitment to enhance the amenities and facilities of all its townships.
“The board envisages that the presence of the complex will significantly boost the vitality and traffic flow into the CBD, and is set to fast-track the development of the township located in the heart of the Iskandar Development Region,” SP Setia said.
Construction work for the complex is scheduled to be completed by Aug 5, 2010, it added.
Wednesday, October 10, 2007
Strong demand for Setia Walk
The Setia Walk commercial centre in Pusat Bandar Puchong appears to attract many buyers at the launch recently. It will comprise 10 rows of retail-cum-office units, entertainment centre, 120-room hotel, 24-storey office tower, 760 serviced apartment units, 50 SOHO units and 4,300 covered parking bays.
SP Setia sees RM2bil GDV from project
SP Setia sees RM2bil GDV from project
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Setia Eco Gardens to have up to 12,000 units
By ZAZALI MUSA
JOHOR BARU: SP Setia Bhd expects its latest property project, Setia Eco Gardens in Johor, to generate some RM2bil in gross development value (GDV), executive director Chang Khim Wah said.
On completion in eight years, the mixed development project on 948 acres would have between 10,000 and 12,000 residential and commercial units, and 60,000 residents.
Chang Khim Wah (left) and SP Setia subsidiary Kesas Kenangan Sdn Bhd GM Saniman MD Apandi.
“This is the first nature-inspired township project blending eco-living whereby residents can enjoy nature at their doorstep,” he told reporters at the soft launch of the Setia Eco Gardens sales office on Sunday.
This is the company’s second property project featuring the eco-living concept, the first one being in Shah Alam.
Chang said in developing the project, the company would preserve tree and plant species indigenous to the area and maintain the natural terrain.
“By doing so, we hope to attract insects such as butterflies, fireflies, dragonflies and various bird species,” he said.
Chang said the company would spend between RM40mil and RM50mil on landscaping works at Setia Eco Gardens.
The project ground breaking ceremony is expected to take place in December followed by the sales launch of phase one comprising 1,200 single and double-storey link houses.
Chang said the company was still working on the pricing but a single-storey unit could probably start from RM170,000 and a double-storey house, from RM200,000.
He said the project was easily accessible from Singapore via the second link crossing, would get a further boost with the opening of the Pontian Link and the upgrading of Perling Highway.
Meanwhile, SP Setia has been awarded a contract to build the RM190.4mil Home Affairs Ministry's new complex here. Work is to start soon for completion in August 2010.
Covering 16.7 acres in the central business district of the 740-acre Setia Tropika township in Kempas, the complex would “significantly boost the vibrancy of the commercial hub as well as augment the overall value of the properties,” group managing director and chief executive officer Tan Sri Liew Kee Sin said at its ground-breaking ceremony yesterday.
Launched in September 2005, Setia Tropika recently delivered its first 1,000 homes and still has 592 acres of undeveloped land.
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Setia Eco Gardens to have up to 12,000 units
By ZAZALI MUSA
JOHOR BARU: SP Setia Bhd expects its latest property project, Setia Eco Gardens in Johor, to generate some RM2bil in gross development value (GDV), executive director Chang Khim Wah said.
On completion in eight years, the mixed development project on 948 acres would have between 10,000 and 12,000 residential and commercial units, and 60,000 residents.
Chang Khim Wah (left) and SP Setia subsidiary Kesas Kenangan Sdn Bhd GM Saniman MD Apandi.
“This is the first nature-inspired township project blending eco-living whereby residents can enjoy nature at their doorstep,” he told reporters at the soft launch of the Setia Eco Gardens sales office on Sunday.
This is the company’s second property project featuring the eco-living concept, the first one being in Shah Alam.
Chang said in developing the project, the company would preserve tree and plant species indigenous to the area and maintain the natural terrain.
“By doing so, we hope to attract insects such as butterflies, fireflies, dragonflies and various bird species,” he said.
Chang said the company would spend between RM40mil and RM50mil on landscaping works at Setia Eco Gardens.
The project ground breaking ceremony is expected to take place in December followed by the sales launch of phase one comprising 1,200 single and double-storey link houses.
Chang said the company was still working on the pricing but a single-storey unit could probably start from RM170,000 and a double-storey house, from RM200,000.
He said the project was easily accessible from Singapore via the second link crossing, would get a further boost with the opening of the Pontian Link and the upgrading of Perling Highway.
Meanwhile, SP Setia has been awarded a contract to build the RM190.4mil Home Affairs Ministry's new complex here. Work is to start soon for completion in August 2010.
Covering 16.7 acres in the central business district of the 740-acre Setia Tropika township in Kempas, the complex would “significantly boost the vibrancy of the commercial hub as well as augment the overall value of the properties,” group managing director and chief executive officer Tan Sri Liew Kee Sin said at its ground-breaking ceremony yesterday.
Launched in September 2005, Setia Tropika recently delivered its first 1,000 homes and still has 592 acres of undeveloped land.
Monday, July 2, 2007
More well planned property projects needed
More well planned property projects needed
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By ANGIE NG
PENANG, being one of the most urbanised states in the country with more than 80% of its population residing in the urban area, needs to have more well planned property projects to cater to the needs of a broad spectrum of buyers.
The premium in the prices of and strong demand for landed residential properties on Penang island are the main magnet for Klang Valley-based developers to venture there.
In order to turn in decent profit after absorbing the high land cost, the developers have to launch more high-end products.
According to Raine & Horne, Zaki and Partners senior partner Michael Geh, there is a mismatch between the types of properties planned or launched recently with what the market actually needed.
He said the current trend of launching very large condominiums of 3,000 sq ft to 5,000 sq ft did not serve the needs of many local buyers and foreign long-term stayers as they were way too large.
“The foreign investors and participants of the Malaysia My Second Home programme, who on the average stay for between three and six months to escape the winter in their country, will need small and cosy residences, especially service apartments of between 1,200 and 1,500 sq ft,” Geh said.
However, Henry Butcher (M) chief operating officer Lim Ewe Tatt disagrees with Geh's views on product mismatch.
“Developers conduct feasibility studies before launching their products in the market to ensure there is no mismatch between what is supplied and what is demanded.
Lim said the luxurious lifestyle projects launched in Penang therefore met the needs of house buyers.
“The most popular type of residential properties are terraced houses priced from RM500,000 onwards and high-rise properties priced from RM150,000,” Lim said.
Sunway City Bhd senior managing director Datuk C. K. Wong said the constraints of land availability would result in a change in designs and project concepts by housing developers.
“More Penangites are looking for properties with bigger land areas, innovative design, big built-up areas and better finishes.
“Good security and safety features as well as homes that are user-friendly for the elderly folks are also important criteria for the Penang market,” Wong said.
E & O Property Development Bhd marketing and sales director K. C. Chong said the Penang market comprised a mixed bunch of people.
There are those that prefer the more traditional forms and styles while the more travelled buyers are happy to adopt new architectural styles, in keeping with their changing lifestyles.
“We also have the various foreigners of different nationalities, which have their own preferences. Hence, it is really up to the developer, the purveyor of style, to offer the right blend of product, concept and environment to his chosen target markets,” Chong said.
SP Setia group managing director Tan Sri Liew Kee Sin said demand for landed properties had always been strong on the island due to the limited land bank available.
“Buyers are becoming increasingly discerning and sophisticated. Lifestyle concepts are very much in demand now due to a lack of such developments in the past.
According to Mah Sing Group Bhd president Datuk Leong Hoy Kum, most Penangites are prudent spenders who seek good value for their purchases.
“Generally, there is a preference for landed residences, especially medium to medium-high end products, although high-rise living is also becoming a popular option,” he said.
The Penang market would welcome well designed landed properties including bungalows and semi-detached homes in good locations.
“For the commercial sector, we believe that projects that tap on Penang’s tourism appeal would do well. These include well planned offices, retail outlet, shopping complexes and dining facilities,” Leong said.
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By ANGIE NG
PENANG, being one of the most urbanised states in the country with more than 80% of its population residing in the urban area, needs to have more well planned property projects to cater to the needs of a broad spectrum of buyers.
The premium in the prices of and strong demand for landed residential properties on Penang island are the main magnet for Klang Valley-based developers to venture there.
In order to turn in decent profit after absorbing the high land cost, the developers have to launch more high-end products.
According to Raine & Horne, Zaki and Partners senior partner Michael Geh, there is a mismatch between the types of properties planned or launched recently with what the market actually needed.
He said the current trend of launching very large condominiums of 3,000 sq ft to 5,000 sq ft did not serve the needs of many local buyers and foreign long-term stayers as they were way too large.
“The foreign investors and participants of the Malaysia My Second Home programme, who on the average stay for between three and six months to escape the winter in their country, will need small and cosy residences, especially service apartments of between 1,200 and 1,500 sq ft,” Geh said.
However, Henry Butcher (M) chief operating officer Lim Ewe Tatt disagrees with Geh's views on product mismatch.
“Developers conduct feasibility studies before launching their products in the market to ensure there is no mismatch between what is supplied and what is demanded.
Lim said the luxurious lifestyle projects launched in Penang therefore met the needs of house buyers.
“The most popular type of residential properties are terraced houses priced from RM500,000 onwards and high-rise properties priced from RM150,000,” Lim said.
Sunway City Bhd senior managing director Datuk C. K. Wong said the constraints of land availability would result in a change in designs and project concepts by housing developers.
“More Penangites are looking for properties with bigger land areas, innovative design, big built-up areas and better finishes.
“Good security and safety features as well as homes that are user-friendly for the elderly folks are also important criteria for the Penang market,” Wong said.
E & O Property Development Bhd marketing and sales director K. C. Chong said the Penang market comprised a mixed bunch of people.
There are those that prefer the more traditional forms and styles while the more travelled buyers are happy to adopt new architectural styles, in keeping with their changing lifestyles.
“We also have the various foreigners of different nationalities, which have their own preferences. Hence, it is really up to the developer, the purveyor of style, to offer the right blend of product, concept and environment to his chosen target markets,” Chong said.
SP Setia group managing director Tan Sri Liew Kee Sin said demand for landed properties had always been strong on the island due to the limited land bank available.
“Buyers are becoming increasingly discerning and sophisticated. Lifestyle concepts are very much in demand now due to a lack of such developments in the past.
According to Mah Sing Group Bhd president Datuk Leong Hoy Kum, most Penangites are prudent spenders who seek good value for their purchases.
“Generally, there is a preference for landed residences, especially medium to medium-high end products, although high-rise living is also becoming a popular option,” he said.
The Penang market would welcome well designed landed properties including bungalows and semi-detached homes in good locations.
“For the commercial sector, we believe that projects that tap on Penang’s tourism appeal would do well. These include well planned offices, retail outlet, shopping complexes and dining facilities,” Leong said.
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.
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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.
Wednesday, June 27, 2007
SP Setia kicks off township in Vietnam
SP Setia kicks off township in Vietnam
By LEONG HUNG YEE
HO CHI MINH CITY: SP Setia Bhd made its maiden foray into Vietnam by teaming up with government-linked conglomerate Becamex IDC Corp to develop a RM2.1bil township, EcoLakes at MyPhuoc, in Binh Duong province.
SP Setia group managing director and chief executive officer Tan Sri Liew Kee Sin 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.
”Having established a dominant presence in the Malaysian property market over the past decade, we are now ready to export our expertise to foreign markets in tandem with our expansion exercise,” he told StarBiz yesterday after SP Setia and Becamex IDC signed an agreement to set up a joint-venture company, SetiaBecamex Joint Stock Co, to undertake the residential project.
EcoLakes will feature a wide range of residential properties such as link and semi-detached houses, villas, apartments and condominium units.
Present at the event were Housing and Local Government Minister Datuk Seri Ong Ka Ting, People Committee of Binh Duong Province chairman Nguyen Hoang Son, and Becamex chief executive officer Nguyen Van Hung.
From left: SP Setia chairman Tan Sri Abdul Rashid Abdul Manaf, Tan Sri Liew Kee Sin, Datuk Seri Ong Ka Ting, Nguyen Van Hung and Vietnam People Committee of Binh Duong Province chief secretary Mai The Trung
“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.
The project is scheduled to be completed within eight years.
By LEONG HUNG YEE
HO CHI MINH CITY: SP Setia Bhd made its maiden foray into Vietnam by teaming up with government-linked conglomerate Becamex IDC Corp to develop a RM2.1bil township, EcoLakes at MyPhuoc, in Binh Duong province.
SP Setia group managing director and chief executive officer Tan Sri Liew Kee Sin 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.
”Having established a dominant presence in the Malaysian property market over the past decade, we are now ready to export our expertise to foreign markets in tandem with our expansion exercise,” he told StarBiz yesterday after SP Setia and Becamex IDC signed an agreement to set up a joint-venture company, SetiaBecamex Joint Stock Co, to undertake the residential project.
EcoLakes will feature a wide range of residential properties such as link and semi-detached houses, villas, apartments and condominium units.
Present at the event were Housing and Local Government Minister Datuk Seri Ong Ka Ting, People Committee of Binh Duong Province chairman Nguyen Hoang Son, and Becamex chief executive officer Nguyen Van Hung.
From left: SP Setia chairman Tan Sri Abdul Rashid Abdul Manaf, Tan Sri Liew Kee Sin, Datuk Seri Ong Ka Ting, Nguyen Van Hung and Vietnam People Committee of Binh Duong Province chief secretary Mai The Trung
“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.
The project is scheduled to be completed within eight years.
Monday, June 25, 2007
SP Setia to form housing JV in Vietnam
SP Setia to form housing JV in Vietnam
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KUALA LUMPUR: SP Setia Bhd will form a joint venture this year to build homes in Vietnam’s Ho Chi Minh City, targeting one of the region’s fastest growing economies in the company’s first foreign venture.
SP Setia was negotiating with a government-linked company to build a township in Ho Chi Minh City, executive director Voon Tin Yow said in an interview. The project will be similar to the company’s RM3.5bil, 791-acre Setia Eco Park development.
SP Setia is shifting focus from mass housing to offices and luxury residences after Malaysia’s glut of unsold homes swelled 31% last year.
SP Setia, which set up a representative office in Vietnam a year ago, would “sign very soon” with its partner, Voon said, declining to give details of the project. “We prefer some element of control” in the project, he said.
Construction of SP Setia’s proposed Vietnam project “hopefully” would start next year, said corporate services head Wong Sheue Yann.
At home, the company was “on track” to meet its target for a 22% rise in home sales to RM1.2bil in the 12 months to October, compared with a year earlier period, helped by its focus on higher priced homes, Voon said.
SP Setia boosted land acquisition spending by four-fold to RM216mil in its fiscal year ending Oct 31 to build luxury homes and condominiums in Malaysia, seeking wider profit margins. It sold RM161mil of land to help fund the purchases, Voon said.
The developer wanted earnings from luxury homes and office developments to account for about 10% of group profit, he said.
Building low-volume, high-priced homes was a “new area of growth”, Voon said. “It’s a recent phenomenon.” Still, the luxury home business was “cyclical” and SP Setia would still focus on the mass housing market, Voon said. – Bloomberg
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KUALA LUMPUR: SP Setia Bhd will form a joint venture this year to build homes in Vietnam’s Ho Chi Minh City, targeting one of the region’s fastest growing economies in the company’s first foreign venture.
SP Setia was negotiating with a government-linked company to build a township in Ho Chi Minh City, executive director Voon Tin Yow said in an interview. The project will be similar to the company’s RM3.5bil, 791-acre Setia Eco Park development.
SP Setia is shifting focus from mass housing to offices and luxury residences after Malaysia’s glut of unsold homes swelled 31% last year.
SP Setia, which set up a representative office in Vietnam a year ago, would “sign very soon” with its partner, Voon said, declining to give details of the project. “We prefer some element of control” in the project, he said.
Construction of SP Setia’s proposed Vietnam project “hopefully” would start next year, said corporate services head Wong Sheue Yann.
At home, the company was “on track” to meet its target for a 22% rise in home sales to RM1.2bil in the 12 months to October, compared with a year earlier period, helped by its focus on higher priced homes, Voon said.
SP Setia boosted land acquisition spending by four-fold to RM216mil in its fiscal year ending Oct 31 to build luxury homes and condominiums in Malaysia, seeking wider profit margins. It sold RM161mil of land to help fund the purchases, Voon said.
The developer wanted earnings from luxury homes and office developments to account for about 10% of group profit, he said.
Building low-volume, high-priced homes was a “new area of growth”, Voon said. “It’s a recent phenomenon.” Still, the luxury home business was “cyclical” and SP Setia would still focus on the mass housing market, Voon said. – Bloomberg
Developers reaching out
Developers reaching out
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By now, the trend is clear. There is a wave of township developers going out into the region to tap into less mature markets that still have a lot of room to expand.
SP Setia Bhd's executive director Voon Tin Yow told Bloomberg on Thursday the company was negotiating to develop a township in Ho Chi Minh City, Vietnam.
SP Setia is Malaysia's biggest property developer in terms of its total market value of over RM6bil. The country's biggest and most successful developers are making the current advance into the region.
Voon did not disclose the proposed project's sales value, or gross development value (GDV) in industry jargon, but it would be sizeable to have any impact on Setia's overall profitability.
Gamuda Bhd has shown how large property projects in Vietnam can be. Although it is better known as a construction and infrastructure group, Gamuda has become a creditable developer. Its GDV was estimated by a brokerage at an amazingly high RM15bil.
That became so high because its Yenso Park project in Hanoi is estimated to have a GDV of RM3.5bil while the GDV for its Long Ah project in Ho Chi Minh City could be as large as RM5bil.
These sales figures would, of course, take a number of years to be realised. It also assumes Gamuda would be able to replicate its development skills in Vietnam.
Going further afield, Sunrise Bhd announced on Thursday it would buy three parcels of land for RM112mil in Richmond city, British Columbia, Canada. It is planning for a mixed development project on the land.
Sunrise is known as the country's best developer of luxurious condominiums.
There is conviction now that property development can be managed on a regional basis. Capitaland Ltd of Singapore proved that. A GLC, it has become a global group.
Among a wide array of interests, it has five Raffles City mixed projects in Singapore, Shanghai, Beijing, Chengdu and Bahrain.
CapitaLand has been rewarded for its global expansion with a total market value of S$22.6bil (RM50.4bil). Malaysia may have timber concessions three times the size of Singapore but its leading developer dwarfs all the property companies here.
Malaysian companies are rising to this challenge. CapitaLand provided the inspiration, and the challenge for Malaysian developers who are confident they have skills to match that of CapitaLand, Mah Sing Group Bhd managing director Datuk Leong Hoy Kum told StarBiz.
Mah Sing could be the next developer to extend its business to Vietnam.
“We intend to go overseas. We will identify a strong partner in countries like Vietnam, China, India, Indonesia and the Middle East, and Vietnam will be the first,” he said.
IJM Corp Bhd is a local contractor which stepped out into the region and proved it could become a regional construction group.
It is now also the Malaysian pioneer as a township developer in India, with a land bank of about 200 acres there.
No doubt, the impending listing of DLF Ltd, a property company owned by Kushal Pal Singh, in India would inspire IJM. DLF would be listing for an estimated RM70bil in market value.
While some observers will doubt or criticise the overseas overtures of the best and brightest among Malaysia's developers, the latter are putting their money where their mouth is and starting a transformation process to become regional developers.
New kid on the oil patch
Much has been reported on the transformation programme for government-linked companies (GLCs).
In the last two to three years, some of the public listed companies (PLCs), led by entrepreneurs, have also been transformed.
Like the GLCs, the transformation of other PLCs has taken many forms - expansion within a global or regional niche, offering products of higher quality, diversification into related products, other industries or other markets, or a new approach to cut costs or raise revenue.
Such transformation is necessary in the face of competition that is no longer domestic, but increasingly regional, especially from countries like China which seems to be able to manufacture more cheaply everything that is also made here.
It may surprise readers that many PLCs here are successfully transforming their business, and producing results.
We will, therefore, occasionally discuss PLC transformation in this column, mainly on companies not already widely analysed by brokers. We start this week with the aptly named Success Transformer Corp Bhd.
Little was heard of Success since its listing on Bursa Malaysia's second board in 2005.
That could be a combination of its second board status and a widely held view that Malaysia is no longer competitive in the manufacture of electrical products.
Since then, it has posted a net profit of RM10.3mil in its first year of listing and RM12.1mil last year, a growth rate of 17.5%.
That enabled it to fast track its transfer listing to the Bursa main board earlier this year.
Its earnings are expected to continue to expand through organic growth and an acquisition that was completed in March.
Success was first listed on Bursa as a manufacture of industrial lighting products and transformers.
Organic growth of these products would be led by increased construction activity in the domestic market and its biggest export market which is the Middle East.
The company has carefully nurtured export sales which have increased every year from 2001 when its exports amounted to RM4mil to RM16mil last year.
Exports continued to expand this year, accounting for 26% of its sales of electrical products in the first quarter this year from 19% last year.
The steady increase in its export trend shows the company is regionally competitive, and holding its own against exports from China.
Success entered the oil and gas (O&G) sector this year after it purchased a 60% stake of Seremban Engineering Sdn Bhd (SESB).
While it is not more than a foothold, it is a firm one, with SESB's vendors having guaranteed a profit after tax of RM5.4mil this year.
That would add a new base level of RM3.2mil each year to Success' earnings from its 60% stake in SESB.
SESB produces process equipment, pressure tanks and heat exchanges and is in the same product sector of the O&G industry as KNM Group Bhd and APB Resources Bhd.
The objective of the SESB acquisition is to expand with a company with core competence in a sector with favourable economics. “SESB was bought at a PE (price/earnings ratio) of 5.3 times.
The vendors sold because they wanted to be part of a listed company to expand. They stay on to manage SESB, and they still own 40% of the company,” Success' executive director Woh Way Cheang told StarBiz.
The owners of both Success and SESB share the same business philosophy. Both companies are financially conservative, with low levels of borrowings.
SESB, for instance, books sales into its accounts only after it has delivered the products to customers, not when it receives a purchase order or on percentage of completion, he added.
It is believed that given the buoyant industry conditions, Success would be able to increase its earnings by about 20% this year and next year to about RM21mil or earnings per share of 17.5 sen.
On that basis, Success traded at a prospective price/earnings ratio of 4.8 times at its share price of 84.5 sen on Friday.
During its short stint as a listed company, Success met its profit forecast, and increased its earnings the following year.
Management went beyond that in acquiring SESB to accelerate the group's growth, and the acquisition was made with cash so that there would not be any earnings dilution.
Digg this story Add to your del.icio.us account
By now, the trend is clear. There is a wave of township developers going out into the region to tap into less mature markets that still have a lot of room to expand.
SP Setia Bhd's executive director Voon Tin Yow told Bloomberg on Thursday the company was negotiating to develop a township in Ho Chi Minh City, Vietnam.
SP Setia is Malaysia's biggest property developer in terms of its total market value of over RM6bil. The country's biggest and most successful developers are making the current advance into the region.
Voon did not disclose the proposed project's sales value, or gross development value (GDV) in industry jargon, but it would be sizeable to have any impact on Setia's overall profitability.
Gamuda Bhd has shown how large property projects in Vietnam can be. Although it is better known as a construction and infrastructure group, Gamuda has become a creditable developer. Its GDV was estimated by a brokerage at an amazingly high RM15bil.
That became so high because its Yenso Park project in Hanoi is estimated to have a GDV of RM3.5bil while the GDV for its Long Ah project in Ho Chi Minh City could be as large as RM5bil.
These sales figures would, of course, take a number of years to be realised. It also assumes Gamuda would be able to replicate its development skills in Vietnam.
Going further afield, Sunrise Bhd announced on Thursday it would buy three parcels of land for RM112mil in Richmond city, British Columbia, Canada. It is planning for a mixed development project on the land.
Sunrise is known as the country's best developer of luxurious condominiums.
There is conviction now that property development can be managed on a regional basis. Capitaland Ltd of Singapore proved that. A GLC, it has become a global group.
Among a wide array of interests, it has five Raffles City mixed projects in Singapore, Shanghai, Beijing, Chengdu and Bahrain.
CapitaLand has been rewarded for its global expansion with a total market value of S$22.6bil (RM50.4bil). Malaysia may have timber concessions three times the size of Singapore but its leading developer dwarfs all the property companies here.
Malaysian companies are rising to this challenge. CapitaLand provided the inspiration, and the challenge for Malaysian developers who are confident they have skills to match that of CapitaLand, Mah Sing Group Bhd managing director Datuk Leong Hoy Kum told StarBiz.
Mah Sing could be the next developer to extend its business to Vietnam.
“We intend to go overseas. We will identify a strong partner in countries like Vietnam, China, India, Indonesia and the Middle East, and Vietnam will be the first,” he said.
IJM Corp Bhd is a local contractor which stepped out into the region and proved it could become a regional construction group.
It is now also the Malaysian pioneer as a township developer in India, with a land bank of about 200 acres there.
No doubt, the impending listing of DLF Ltd, a property company owned by Kushal Pal Singh, in India would inspire IJM. DLF would be listing for an estimated RM70bil in market value.
While some observers will doubt or criticise the overseas overtures of the best and brightest among Malaysia's developers, the latter are putting their money where their mouth is and starting a transformation process to become regional developers.
New kid on the oil patch
Much has been reported on the transformation programme for government-linked companies (GLCs).
In the last two to three years, some of the public listed companies (PLCs), led by entrepreneurs, have also been transformed.
Like the GLCs, the transformation of other PLCs has taken many forms - expansion within a global or regional niche, offering products of higher quality, diversification into related products, other industries or other markets, or a new approach to cut costs or raise revenue.
Such transformation is necessary in the face of competition that is no longer domestic, but increasingly regional, especially from countries like China which seems to be able to manufacture more cheaply everything that is also made here.
It may surprise readers that many PLCs here are successfully transforming their business, and producing results.
We will, therefore, occasionally discuss PLC transformation in this column, mainly on companies not already widely analysed by brokers. We start this week with the aptly named Success Transformer Corp Bhd.
Little was heard of Success since its listing on Bursa Malaysia's second board in 2005.
That could be a combination of its second board status and a widely held view that Malaysia is no longer competitive in the manufacture of electrical products.
Since then, it has posted a net profit of RM10.3mil in its first year of listing and RM12.1mil last year, a growth rate of 17.5%.
That enabled it to fast track its transfer listing to the Bursa main board earlier this year.
Its earnings are expected to continue to expand through organic growth and an acquisition that was completed in March.
Success was first listed on Bursa as a manufacture of industrial lighting products and transformers.
Organic growth of these products would be led by increased construction activity in the domestic market and its biggest export market which is the Middle East.
The company has carefully nurtured export sales which have increased every year from 2001 when its exports amounted to RM4mil to RM16mil last year.
Exports continued to expand this year, accounting for 26% of its sales of electrical products in the first quarter this year from 19% last year.
The steady increase in its export trend shows the company is regionally competitive, and holding its own against exports from China.
Success entered the oil and gas (O&G) sector this year after it purchased a 60% stake of Seremban Engineering Sdn Bhd (SESB).
While it is not more than a foothold, it is a firm one, with SESB's vendors having guaranteed a profit after tax of RM5.4mil this year.
That would add a new base level of RM3.2mil each year to Success' earnings from its 60% stake in SESB.
SESB produces process equipment, pressure tanks and heat exchanges and is in the same product sector of the O&G industry as KNM Group Bhd and APB Resources Bhd.
The objective of the SESB acquisition is to expand with a company with core competence in a sector with favourable economics. “SESB was bought at a PE (price/earnings ratio) of 5.3 times.
The vendors sold because they wanted to be part of a listed company to expand. They stay on to manage SESB, and they still own 40% of the company,” Success' executive director Woh Way Cheang told StarBiz.
The owners of both Success and SESB share the same business philosophy. Both companies are financially conservative, with low levels of borrowings.
SESB, for instance, books sales into its accounts only after it has delivered the products to customers, not when it receives a purchase order or on percentage of completion, he added.
It is believed that given the buoyant industry conditions, Success would be able to increase its earnings by about 20% this year and next year to about RM21mil or earnings per share of 17.5 sen.
On that basis, Success traded at a prospective price/earnings ratio of 4.8 times at its share price of 84.5 sen on Friday.
During its short stint as a listed company, Success met its profit forecast, and increased its earnings the following year.
Management went beyond that in acquiring SESB to accelerate the group's growth, and the acquisition was made with cash so that there would not be any earnings dilution.
Friday, June 8, 2007
Setia Avenue records 60% take-up rate
Setia Avenue records 60% take-up rate
By Sabry Tahir
SHAH ALAM: Bandar Setia Alam Sdn Bhd, a subsidiary of SP Setia Bhd and the developer of Bandar Setia Alam, has seen brisk sales of shop/offices at Setia Avenue, the second commercial component that is taking shape at the township in Shah Alam.
Launched early this year, 60% of the project – comprising 274 shop/offices with a sales value of RM170mil – had been sold, Bandar Setia Alam general manager Norhayati Subali said.
“We started developing Setia Avenue last month and the entire development is due for completion by end-2008,” she told StarBiz.
Setia Avenue, on 12 acres, will have five blocks of five-storey buildings. Each unit, with a built-up of about 2,000 sq ft, is priced at RM1mil to RM2mil.
Norhayati Subali with a scale model of the second commercial component.
“It will be a new business address. There will be many boulevards and it will be a perfect place for al fresco dining,” Norhayati said.
While the ground level units boast wide shop frontage, the commercial centre is especially suitable for car showrooms, restaurants and jewellery shops.
The site, which faces the bustling Jalan Meru and a road linking to the North Klang Valley Expressway, will be connected by a bridge to an upcoming hypermarket nearby.
Other unique features of Setia Avenue include roofed walkways, piped-in music throughout the area and unconventional building façades.
Bandar Setia Alam last year sold its first commercial development comprising some 200 shop/offices.
According to Norhayati, the development of the 280-acre Setia City in the heart of Setia Alam township would start in 2009.
The project, slated to house SP Setia's new headquarters, a medical centre, educational institutions, a hotel, offices and corporate towers, would take five to six years to complete, she said.
Launched in late-2003, Bandar Setia Alam is a 4,000-acre freehold development due for completion in seven to 10 years. The township is projected to have a population of over 100,000.
By Sabry Tahir
SHAH ALAM: Bandar Setia Alam Sdn Bhd, a subsidiary of SP Setia Bhd and the developer of Bandar Setia Alam, has seen brisk sales of shop/offices at Setia Avenue, the second commercial component that is taking shape at the township in Shah Alam.
Launched early this year, 60% of the project – comprising 274 shop/offices with a sales value of RM170mil – had been sold, Bandar Setia Alam general manager Norhayati Subali said.
“We started developing Setia Avenue last month and the entire development is due for completion by end-2008,” she told StarBiz.
Setia Avenue, on 12 acres, will have five blocks of five-storey buildings. Each unit, with a built-up of about 2,000 sq ft, is priced at RM1mil to RM2mil.
Norhayati Subali with a scale model of the second commercial component.
“It will be a new business address. There will be many boulevards and it will be a perfect place for al fresco dining,” Norhayati said.
While the ground level units boast wide shop frontage, the commercial centre is especially suitable for car showrooms, restaurants and jewellery shops.
The site, which faces the bustling Jalan Meru and a road linking to the North Klang Valley Expressway, will be connected by a bridge to an upcoming hypermarket nearby.
Other unique features of Setia Avenue include roofed walkways, piped-in music throughout the area and unconventional building façades.
Bandar Setia Alam last year sold its first commercial development comprising some 200 shop/offices.
According to Norhayati, the development of the 280-acre Setia City in the heart of Setia Alam township would start in 2009.
The project, slated to house SP Setia's new headquarters, a medical centre, educational institutions, a hotel, offices and corporate towers, would take five to six years to complete, she said.
Launched in late-2003, Bandar Setia Alam is a 4,000-acre freehold development due for completion in seven to 10 years. The township is projected to have a population of over 100,000.
Monday, April 23, 2007
The man behind SP Setia's success
The man behind SP Setia's success
By Chong Jin Hun
April 23 2007
EVER wondered how Malaysia's most valuable property firm SP Setia Bhd got its name?
The answer lies with its supremo Tan Sri Liew Kee Sin, who about 11 years ago, rose to helm the company. Over the years, SP Setia has earned its spurs as one of the most successful township builders in Malaysia.
"When I came in, the name was a mouthful - Syarikat Pembinaan Setia Bhd (SPSB). So, I changed it to SP Setia.
"How do you market something when the name is a mouthful? So, it was a paradigm shift," said Liew, who once co-owned a private property firm Syarikat Kemajuan Jerai Sdn Bhd (SKJ) with SP Setia's current chairman Tan Sri Abdul Rashid Abdul Manaf.
Liew, 49, joined SP Setia in 1996, initially as an executive director and subsequently assumed the post of chief executive officer (CEO) within the same year.
His entry followed the purchase of SKJ by SPSB in 1995. Hence, both Liew and Abdul Rashid received payment in the form of shares in SPSB.
SPSB was a second board construction entity on the then Kuala Lumpur Stock Exchange.
"On the first day I became the CEO, SP Setia's market capitalisation was about RM300 million," said Liew, a business administration graduate from Universiti Malaya.
SP Setia's market capitalisation stood at RM5.62 billion as at last Friday.
The CEO, a keen advocate of teamwork, attributes SP Setia's success today to the group's estimated 1,000 employees.
"No secret. The last 10 years, all my people are still with me. I always believe that a company is not made up of one man but a group of people," he said, when asked on his success recipe.
Work aside, Liew, the winner of financial magazine Asiamoney's 2005 Corporate Executive of the Year Award for Malaysia, enjoys travelling, and reading biographies of influential historical figures.
SP Setia's prowess had seen the company being named Best Property Developer in Malaysia for the second year running in 2006 by UK-based financial publication Euromoney's Real Estate Awards, among others.
By Chong Jin Hun
April 23 2007
EVER wondered how Malaysia's most valuable property firm SP Setia Bhd got its name?
The answer lies with its supremo Tan Sri Liew Kee Sin, who about 11 years ago, rose to helm the company. Over the years, SP Setia has earned its spurs as one of the most successful township builders in Malaysia.
"When I came in, the name was a mouthful - Syarikat Pembinaan Setia Bhd (SPSB). So, I changed it to SP Setia.
"How do you market something when the name is a mouthful? So, it was a paradigm shift," said Liew, who once co-owned a private property firm Syarikat Kemajuan Jerai Sdn Bhd (SKJ) with SP Setia's current chairman Tan Sri Abdul Rashid Abdul Manaf.
Liew, 49, joined SP Setia in 1996, initially as an executive director and subsequently assumed the post of chief executive officer (CEO) within the same year.
His entry followed the purchase of SKJ by SPSB in 1995. Hence, both Liew and Abdul Rashid received payment in the form of shares in SPSB.
SPSB was a second board construction entity on the then Kuala Lumpur Stock Exchange.
"On the first day I became the CEO, SP Setia's market capitalisation was about RM300 million," said Liew, a business administration graduate from Universiti Malaya.
SP Setia's market capitalisation stood at RM5.62 billion as at last Friday.
The CEO, a keen advocate of teamwork, attributes SP Setia's success today to the group's estimated 1,000 employees.
"No secret. The last 10 years, all my people are still with me. I always believe that a company is not made up of one man but a group of people," he said, when asked on his success recipe.
Work aside, Liew, the winner of financial magazine Asiamoney's 2005 Corporate Executive of the Year Award for Malaysia, enjoys travelling, and reading biographies of influential historical figures.
SP Setia's prowess had seen the company being named Best Property Developer in Malaysia for the second year running in 2006 by UK-based financial publication Euromoney's Real Estate Awards, among others.
Friday, April 13, 2007
Shot in the arm for Malaysian property sector
Shot in the arm for property sector
By ANGIE NG
PETALING JAYA: The stage is set for the emergence of a more competitive and efficient property sector following the bold changes to the public delivery system for the sector.
Developers and property buyers gave resounding applause for the Government's latest initiative, which will result in greater transparency and flexibility, better building delivery system, fast-track approval and an investment friendly environment.
From the shortening of project approval to between four and six months to the issuance of strata title within 12 months, the comprehensive changes to the public delivery system have been hailed as uplifting and revolutionary.
To encourage developers to build then sell, they are now offered incentives such as exemption from paying deposit for a housing development licence and fast-track approval of under four months.
According to SP Setia Bhd Bhd group managing director and chief executive officer Tan Sri Liew Kee Sin, the fast-track approval process and greater efficiency of the public agencies would translate into substantial cost savings in the building and delivery process of property.
“Developers will be able to better plan for speedier and more efficient project launches and delivery. The new environment will raise their competitiveness and result in more innovative and well-planned projects in the market,” he said.
Mah Sing Group Bhd president and group chief executive Datuk Leong Hoy Kum said the sharp reduction in the approval time to between four and six months, and the implementation of One-Stop Centres would do much to enhance business efficiency and facilitate development of the property market and the country's economy.
Expediting the approval process would be a boon for developers as it would lead to lower holding cost, translating into better efficiency of capital. These savings, in turn, could be passed on to property buyers, making it a win-win situation for all parties.
Real Estate and Housing Developers Association president Ng Seing Liong said although land matters and local governments were not directly under the purview of the Housing and Local Government Ministry, the clear mechanisms and legislations in place would ensure the success of the initiative.
“With a strengthened legislative environment, developers and industry players should be able to conduct business with greater confidence. Property buyers would also benefit from greater efficiency in the system,” Ng said.
By ANGIE NG
PETALING JAYA: The stage is set for the emergence of a more competitive and efficient property sector following the bold changes to the public delivery system for the sector.
Developers and property buyers gave resounding applause for the Government's latest initiative, which will result in greater transparency and flexibility, better building delivery system, fast-track approval and an investment friendly environment.
From the shortening of project approval to between four and six months to the issuance of strata title within 12 months, the comprehensive changes to the public delivery system have been hailed as uplifting and revolutionary.
To encourage developers to build then sell, they are now offered incentives such as exemption from paying deposit for a housing development licence and fast-track approval of under four months.
According to SP Setia Bhd Bhd group managing director and chief executive officer Tan Sri Liew Kee Sin, the fast-track approval process and greater efficiency of the public agencies would translate into substantial cost savings in the building and delivery process of property.
“Developers will be able to better plan for speedier and more efficient project launches and delivery. The new environment will raise their competitiveness and result in more innovative and well-planned projects in the market,” he said.
Mah Sing Group Bhd president and group chief executive Datuk Leong Hoy Kum said the sharp reduction in the approval time to between four and six months, and the implementation of One-Stop Centres would do much to enhance business efficiency and facilitate development of the property market and the country's economy.
Expediting the approval process would be a boon for developers as it would lead to lower holding cost, translating into better efficiency of capital. These savings, in turn, could be passed on to property buyers, making it a win-win situation for all parties.
Real Estate and Housing Developers Association president Ng Seing Liong said although land matters and local governments were not directly under the purview of the Housing and Local Government Ministry, the clear mechanisms and legislations in place would ensure the success of the initiative.
“With a strengthened legislative environment, developers and industry players should be able to conduct business with greater confidence. Property buyers would also benefit from greater efficiency in the system,” Ng said.
Monday, March 26, 2007
SP Setia sees good prospects for property projects in Johor
SP Setia sees good prospects for property projects in Johor
BY DANNY YAP
PETALING JAYA: SP Setia Bhd sees good prospects for property developments in south Johor following the Government’s decision to transform the region into a major economic hub.
SP Setia group managing director and chief executive officer Tan Sri Liew Kee Sin said the allocation by the Government and expected flow of foreign investment totalling about RM15bil would provide further impetus to fast track the state's economy to the next growth level.
“We are very happy with the government allocation and positive sentiment towards the region,” he told StarBiz.
As a developer, SP Setia believed strongly in the potential of the Johor property market, especially the South Johor Economic Region (SJER), he said.
He said SJER was a boon for developers with substantial prime land bank in the area.
“Of particular interest to developers are the urban redevelopment plans slated for Johor Baru city and Port of Tanjung Pelepas, which will see existing industries upgraded to meet green standards and new standards being introduced to residential communities,” Liew said.
He said an emerging zone that would spawn the development of new townships was also on the cards.
In this respect, Liew said SP Setia's 1,509-acre Bukit Indah project in Bandar Nusajaya was one of the prime beneficiaries of the increased economic activity due to projects such as the Johor's new administrative capital, extension of Senai international airport and the Nusajaya Educity, which was expected to house at least four foreign universities with total enrolment of over 20,000 students.
Started in 1997, the Bukit Indah project still had close to 600 acres of undeveloped land bank that could benefit from the Government's recent pump priming activities, he said.
Liew said another project – Setia Tropika – located within the Tebrau corridor and forming part of the SJER, was another possible beneficiary.
Spanning 740 acres and with a gross development value of RM2bil, the project had transformed the development landscape of Johor Baru with its chic contemporary designs, he said.
“Setia Tropika will enjoy direct access to the North-South Expressway upon completion of the RM15mil link road being built by our subsidiary Setia Indah Sdn Bhd,” Liew noted. Its central location also afforded easy access to Johor Baru city centre and the causeway located 6km and 10km away respectively.
Asked if there would be a flood of investors buying properties in SJER, especially from Singapore, he said: “We believe that property demand in SJER is set to grow concurrently with the multiplier effects of the logistics infrastructure and introduction of commercially and investor-friendly incentives.”
On SP Setia's investment strategy in Johor, Liew said the company would capitalise on its yet-to-be developed land bank in the state, riding on the expected increase in economic activities.
He said SP Setia had successfully established a strong following in the Johor Baru market with its signature projects that showcased award-winning landscaping, innovative lifestyle concepts and quality homes at accessible pricing.
“Our Bukit Indah and Setia Tropika projects will underpin our growth in Johor. We are also actively scouting for more strategic land bank in Johor to further expand our presence and take advantage of the boost in infrastructure spending and economic activity,” said Liew.
Asked what was further needed to attract more investors to Johor Baru, he said the state government must put in place first-class logistics infrastructure, introduce more attractive incentives and maintain its low-cost lead to become a choice investment and tourism destination.
Other developers that have invested in the SJER include UEM World Bhd in Nusajaya and developers in Danga Bay.
BY DANNY YAP
PETALING JAYA: SP Setia Bhd sees good prospects for property developments in south Johor following the Government’s decision to transform the region into a major economic hub.
SP Setia group managing director and chief executive officer Tan Sri Liew Kee Sin said the allocation by the Government and expected flow of foreign investment totalling about RM15bil would provide further impetus to fast track the state's economy to the next growth level.
“We are very happy with the government allocation and positive sentiment towards the region,” he told StarBiz.
As a developer, SP Setia believed strongly in the potential of the Johor property market, especially the South Johor Economic Region (SJER), he said.
He said SJER was a boon for developers with substantial prime land bank in the area.
“Of particular interest to developers are the urban redevelopment plans slated for Johor Baru city and Port of Tanjung Pelepas, which will see existing industries upgraded to meet green standards and new standards being introduced to residential communities,” Liew said.
He said an emerging zone that would spawn the development of new townships was also on the cards.
In this respect, Liew said SP Setia's 1,509-acre Bukit Indah project in Bandar Nusajaya was one of the prime beneficiaries of the increased economic activity due to projects such as the Johor's new administrative capital, extension of Senai international airport and the Nusajaya Educity, which was expected to house at least four foreign universities with total enrolment of over 20,000 students.
Started in 1997, the Bukit Indah project still had close to 600 acres of undeveloped land bank that could benefit from the Government's recent pump priming activities, he said.
Liew said another project – Setia Tropika – located within the Tebrau corridor and forming part of the SJER, was another possible beneficiary.
Spanning 740 acres and with a gross development value of RM2bil, the project had transformed the development landscape of Johor Baru with its chic contemporary designs, he said.
“Setia Tropika will enjoy direct access to the North-South Expressway upon completion of the RM15mil link road being built by our subsidiary Setia Indah Sdn Bhd,” Liew noted. Its central location also afforded easy access to Johor Baru city centre and the causeway located 6km and 10km away respectively.
Asked if there would be a flood of investors buying properties in SJER, especially from Singapore, he said: “We believe that property demand in SJER is set to grow concurrently with the multiplier effects of the logistics infrastructure and introduction of commercially and investor-friendly incentives.”
On SP Setia's investment strategy in Johor, Liew said the company would capitalise on its yet-to-be developed land bank in the state, riding on the expected increase in economic activities.
He said SP Setia had successfully established a strong following in the Johor Baru market with its signature projects that showcased award-winning landscaping, innovative lifestyle concepts and quality homes at accessible pricing.
“Our Bukit Indah and Setia Tropika projects will underpin our growth in Johor. We are also actively scouting for more strategic land bank in Johor to further expand our presence and take advantage of the boost in infrastructure spending and economic activity,” said Liew.
Asked what was further needed to attract more investors to Johor Baru, he said the state government must put in place first-class logistics infrastructure, introduce more attractive incentives and maintain its low-cost lead to become a choice investment and tourism destination.
Other developers that have invested in the SJER include UEM World Bhd in Nusajaya and developers in Danga Bay.
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