S P Setia inks RM1.07 billion syndicated financing facilities for Setia Federal Hill Registration

Setia Federal Hill will undertake the development of a new integrated health and research institute known as the National Institute of Health (1NIH) on a 41-acre land in Setia Alam, Shah Alam.

“The development comprises office buildings, health management institution, medical research centre, facilities block, a kindergarten and staff quarters,” said Datuk Khor Chap Jen, acting president and CEO of S P Setia Bhd and chairman of Setia Federal Hill Sdn Bhd at the signing ceremony today.

In return, the government will provide Setia Federal Hill, a 52-acre site on Federal Hill for the development of a mixed residential and commercial project worth RM15 billion in gross development value (GDV). We expect the launch to be in 2017,” revealed Khor.

He added that the 1N1H is a particularly meaningful project approved by the government. The facility will also provide a conducive research environment for the health and research practitioners in the medical field.

Meanwhile, the group is striving to have up to 40% of its revenue coming from overseas sales next year, according to Choy Kah Yew, acting chief financial officer of S P Setia Bhd.

“We are hopeful to achieve up to 40% revenue from overseas projects, for next year. In terms of revenue, it is based on our turnover contributions. Our international projects are completion-based. So it is really about timing,” he revealed.

“Most of S P Setia’s projects overseas are fully sold, and are on track for their respective completions. For this year, approximately 70% of our revenue would derive from local projects, and the remaining 30% would be from overseas projects,” Choy said.

Some of S P Setia’s notable overseas projects include the on-going Battersea Powerstation in London and Fulton Lane in Melbourne, which was handed over in September 2015.

As at September 2015, the group’s overseas projects posted sales growth of 15.5% from the previous quarter.

Sales from the £8 billion redevelopment of Battersea Powerstation and Singapore projects recorded an improvement of 7.7% (RM111 million) and 65% (RM53 million), respectively. Meanwhile, its local projects recorded sales of RM573 million.

The group is scheduled to announce its latest figures and sales target upon its forthcoming financial year-end, 31 December 2015.

 

News Source: The Edge Property, 9 December 2015

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