Permodalan Nasional Berhad is looking to merge S P Setia and I&P to form one of the largest property developer in Malaysia. This merger will create a company with close to 10,000 acres of landbank. As per TheStar article on 18 April, this is 3rd largest in landbank size. As we know, S P Setia is the developer of Battersea in the UK. An earlier article here: Brexit, London properties and Malaysian developers This is one Malaysian developer which has a high profile within Malaysia as well as developing huge projects overseas. In a report in TheStar, S P Setia is said to have entered into a non-binding memorandum of intent with Permodalan Nasional Berhad (PNB) and Amanahraya Trustees Bhd to start talks on the proposed acquisition of I&P group. This is said to allow it to expand faster. If the deal goes through and S P Setia becomes the new owner of I&P, it will also own 4,263 acres of landbank in the Klang Valley and Johor Bahru.
S P Setia’s President and CEO Datuk Khor Chap Jen said this about the acquisition of I&P, “will allow us to tap the synergistic opportunities that I&P Group could offer given that its landbanks are local within growth areas in the central part of the Klang Valley and Johor Bahru.” Beyond this, S P Setia will also be buying 342 acres of prime land in Bangi from Seriemas Development Sdn Bhd which is also a subsidiary of PNB for about RM447.58mil. The acquisition of this piece of land from Seriemas Development will enable S P Setia to carry out a mixed development township comprising residential and commercial property products with a gross development value of RM2.74bil. What’s available in Bangi today? Well, take look at the image for what I found for condos below RM500,000. I think the choices for landed are also aplenty too but of course Bangi is definitely still growing. Perhaps with S P Setia, the growth would now become even faster.
This was not the only positive news about S P Setia. It was also one of 24 bidders for a piece of land in Toh Tuck Road, Singapore. It’s bid was said to be the highest. Reported here in TheStar. SP Setia Top Bid. S P Setia also won the top award in The Edge Malaysia Top Property Developers’ Awards (TPDA) 2016. They were awarded as the Top Developer. This was the first time that it has won after being placed in 3rd and 4th in 2014 and 2015 respectively. According to a report in TheEdgeMarkets, S P Setia’s development called TRIO achieved 60percent take-up rate during a recent weekend launch. As one of Malaysia’s most prominent developers, I hope they continue to build not just within but outside as well. It will indirectly help the local property market too. Who knows the buyers of their London project may also buy another of their project in Malaysia as well? Happy following.
written on 15 April 2017
Next suggested article: S P Setia venturing into mainland Penang; first development