S P Setia buys KL land with RM1b GDV

By Janice Melissa Thean of theedgeproperty.com
Wednesday, 05 December 2012 16:31

KUALA LUMPUR (Dec 5): S P Setia Bhd has purchased a 12,456 square metre plot in the heart of KL for a total purchase consideration of RM294.97 million via its wholly-owned subsidiary Setia Hicon Sdn Bhd.

"The estimated gross development value (GDV) of the proposed integrated commercial development on the property... is approximately RM1.04 billion,” said S P Setia in an announcement to Bursa Malaysia today (Wednesday).

The freehold property is currently occupied by the British High Commission and is located on "Embassy Row", in the immediate vicinity of KLCC within the Golden Triangle.

The group will also come into ownership of the buildings and amenities which currently sit on the property, including 3-storey building, a 2-storey clubhouse with ancillary buildings and a swimming pool.

The location enjoys good transportation connectivity via the Ampang-KL Elevated Highway (AKLEH), Duta-Ulu Klang Expressway (DUKE) and Middle Ring Road 2 (MRR2), as well as close proximity to the Ampang Park LRT station.

"Over the past few years the group has steadily grown its network of high-net-worth property purchasers who have strongly supported the launch of its numerous investment-grade projects such as KL Eco City in Bangsar, Fulton Lane in Melbourne and 18 Woodsville in Singapore," it said.

"The proposed acquisition therefore provides a unique opportunity for S P Setia to acquire a piece of prime freehold land at the very heart of Kuala Lumpur to build investment-grade commercial and residential products to suit the needs of this highly discerning and sophisticated clientele."

S P Setia intends to finance the acquisition with internal funds and bank borrowings. It is estimated that the acquisition be complete by the first half of 2013.