KUALA LUMPUR: S P Setia Berhad announced that the completion of the 500-acre land sale in Glengowrie, Semenyih, for RM392 million will enable the company to reallocate resources to significant projects and reduce debt.
President and chief executive officer Datuk Choong Kai Wai said that this move aligns with the company's asset-light strategy to enhance competitiveness.
"It also enables us for future growth, fostering a more dynamic and innovation-driven approach, allowing us to seize new opportunities, which increases profitability and stakeholder value," he said in a statement.
S P Setia sold the land to Elite Park Development Sdn Bhd, Grand Prestige Development Sdn Bhd, and Mestika Bistari Sdn Bhd, subsidiaries of Mah Sing Group Berhad.
This strategic move is part of S P Setia's plan to boost capital efficiency and focus on high-priority projects, steering the company towards a leaner business model.
The disposal aligns perfectly with the company's vision of focussing on impactful projects and ensuring resource efficiency.
Analysts have generally viewed the land deal positively.
They noted that the arrangement is beneficial for both parties, with S P Setia aiming to monetise assets complementing Mah Sing's strong balance sheet and affordable brand positioning.