S P Setia on track to meet long-term goals via planned, strategic land sales

• 959.72 acres of land in Tebrau, Johor disposed of for RM547.65m cash
• Datuk Choong Kai Wai, president & CEO of S P Setia: The sale of this land is in line with the group’s direction to optimise and rebalance its land bank whilst maintaining an efficient capital structure.

SETIA ALAM (July 5): S P Setia Bhd announced today of its disposal of freehold land measuring approximately 959.72 acres to Scientex Lestari Sdn Bhd for a cash consideration of RM547.65 million. The sale was executed through S P Setia's indirect wholly-owned subsidiary, Pelangi Sdn Bhd, following a conditional sale and purchase agreement signed on the same day.

According to a media release by S P Setia today, the land located in Mukim of Tebrau District of Johor Bahru “hold strong value due to their prime location along the Senai-Desaru Expressway (SDE)”.

Positioned approximately 18 km east of the Senai International Airport and 28 km north of Johor Bahru city centre, “the lands provide easy access to major transportation routes”.

Currently, access to the lands from Johor Bahru city centre is via the Pasir Gudang Highway or Tebrau Highway leading to Jalan Kota Tinggi and thereafter to the SDE.

"This sale is a testament to our commitment to improving the company's financial health and position. By unlocking our land assets, we are enhancing our capital efficiency and enabling a more robust future for S P Setia," said Datuk Choong Kai Wai, president & CEO of S P Setia.

"The sale of this land is in line with the group’s direction to optimise and rebalance its land bank whilst maintaining an efficient capital structure. The land in mentioned relates to the same initially agreed to be sold to Scientex Quatari Sdn Bhd, a wholly-owned subsidiary of Scientex Bhd as announced on May 7, 2021 on the Main Market of Bursa Malaysia Securities Bhd,” explained Choong.

“However, due to non-fulfilment of a condition precedent, specifically in relation to the approval from the EPU, Ministry of Economy, the transaction was terminated in March 2023," he added.

S P Setia also stated that the sale of this land will not have any material effect on the earnings per share, net assets per share, save for the group realising an estimated gain on disposal of approximately RM438.3 million upon completion.

The net assets and cash balance of the group shall increase by approximately RM320.3 million and RM441.4 million, respectively, immediately after the completion of the sale.

"We will continue to evaluate strategic opportunities to optimise our resources and execute projects that contribute to the growth of S P Setia," said Choong.