SHAH ALAM: S P Setia Berhad has completed the sale of its 959.72-acre land parcel in Tebrau, Johor.
This strategic transaction, conducted through its subsidiary Pelangi Sdn Bhd, was
completed earlier today with Senibong Island Sdn Bhd, bringing a cash contribution of
RM564 million to Setia.
By unlocking the value of this asset, the deal enhances the company’s financial standing, contributing to an expected profit after tax of RM332 million.
“This successful transaction complements our de-gearing efforts, which are happening
according to plan and shall contribute to our future growth. By efficiently managing our
capital structure, channelling resources into fast-developing projects, rationalising our cost structure, and directly boosting our bottom line, Setia is better positioned for expansion
and long-term sustainability,” said Setia president and CEO Datuk Choong Kai Wai.
In tandem with this, Setia continues to direct its efforts into other revenue streams via
landbank management, making its mark in industrial development and continuing with
regional expansion in Vietnam and Australia to broaden its income base, in addition to its
strong execution of township projects in line with market demand.
Setia has also commenced pre-IPO preparatory work to explore the establishment of a Real Estate Investment Trust (REIT), showcasing a diverse asset portfolio, which may include retail complexes, office buildings, schools and a convention centre, establishing a new pathway for investor value and company growth.
“Our strategy to realise the values of our identified land assets has brought us one step
closer to an even stronger financial state and supports our efforts to diversify our income
base. We remain committed to our ethos of excellence and innovation, driving growth
while delivering superior value to our stakeholders,” said Choong.
