KUALA LUMPUR: SP Setia Bhd third quarter profits ended September 2017 surged 89 per cent to RM253.22 million, from RM134.07 million previously, thanks to redevelopment of its Battersea Power Station in the UK to prime property units.
Its quarterly revenue, meanwhile, fell 33 per cent to RM842.49 million from RM1.26 billion posted a year ago, due to lesser contribution from its Malaysian operation as projects were completed and handed over in the previous quarter.
The group achieved sales of RM2.82 billion for the nine months ended September 2017.
The property player said local projects contributed RM1.66 billion or 59 per cent of the total sales while international projects contributed RM1.16 billion or 41 per cent of the total sales.
The sales secured locally were largely from the Central region with RM1.17 billion whereas Southern and Northern regions combined, contributed RM495.6 million.
As for the international projects, Sapphire By The Gardens in Melbourne, Australia continued to outperform with a strong take-up rate of 83% amounting to RM871.7 million after only less than four months from the date of launch.
The Battersea Power Station project located in the United Kingdom contributed an effective share of RM149.2 million whereas projects in Singapore and Vietnam contributed a total of RM89.4 million in sales.
“Notwithstanding the total sales achieved are within the set expectation, the local market remains subdued, and the underlying demand is only strong for selective products and locations.
"However, we are pleased to note that the demand in international markets has picked up, demonstrated by the higher current nine months sales which exceeded last year’s sales," president and chief executive officer Datuk Khor Chap Jen said, in a statement, today.
This year, SP Setia foresees stronger contribution from its international projects is positive on achieving the RM4 billion sales target.
October 2017 was a major milestone for SP Setia as the Battersea Power Station Phase 1 comprising 12 blocks, or 865 units were completed.
Currently, more than 400 residents and tenants have already moved into Battersea. The construction of Phase 2 and Phase 3a are ongoing and are on target to be completed in 2020 and 2021.
As for the Northern Line Extension (NLE), the tunnelling is progressing well, and the excavation of the station and crossover box is also progressing as scheduled.
Upon completion, the addition of the NLE is expected to further enhance the placemaking components and economically benefit the commercial activities in Battersea Power Station.
In the months ahead, SP Setia plans to launch projects with a combined gross development value (GDV) of RM2.03 billion and the notable launches are in Setia Alam, Setia Ecohill, Setia Eco Templer and KL Eco City.
It is also repositioning the launch of its condominium project such as Setia Sky Seputeh (Tower B) and bringing forward the launches of more mid-priced range landed properties.
SP Setia’s unbilled sales amounts to RM7.05 billion, anchored by 31 ongoing projects. Currently, it has a landbank totalling 5,384 acres with estimated RM79.82 billion in GDV.