Setia completes RM564 million land deal in Johor, set to boost its growth engines

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.