PETALING JAYA: S P Setia Bhd has completed the disposal of its 960-acre land parcel in Tebrau, Johor to Senibong Island Sdn Bhd, in a cash deal worth RM564mil.
The group said the transaction, conducted through its subsidiary Pelangi Sdn Bhd, has strengthened the company’s financial standing and is expected to contribute to an after-tax profit of RM332mil.
S P Setia president and chief executive officer Datuk Choong Kai Wai, in a media statement yesterday, said the sale of the land complements the group’s de-gearing efforts, as it continues its attempt to manage its capital structure, rationalising costs, and channelling its resources into fast-developing projects.
He commented that the direction would enable S P Setia to be better positioned for expansion and long-term sustainability.
In addition, the group said it will continue to direct its efforts into other revenue streams through landbank management, industrial development and continuing with regional expansion in Vietnam and Australia, on top of its execution of township projects in line with market demand.
It has also begun pre-initial public offering preparatory work to explore the establishment of a real estate investment trust to showcase a diverse asset portfolio, which could include retail complexes, office buildings, schools and a convention centre.
Choong believes that the group’s strategy to realise the values of its identified land assets has brought S P Setia has further enhanced its financial state, lending stronger support to its efforts for income base diversification.
“We remain committed to our ethos of excellence and innovation, driving growth while delivering superior value to our stakeholders,” he added.