The Board of Directors of S P Setia (“Board”) wishes to announce that on 12 August 2011, Bukit Indah (Selangor) Sdn Bhd (“Bukit Indah” or “Purchaser”), a wholly-owned subsidiary of S P Setia, entered into a sale and purchase agreement (“SPA”) with Ban Guan Hin Realty Sdn Bhd (“Ban Guan Hin Realty” or “Vendor”) for the proposed purchase of a piece of freehold land held under Geran 45874 for Lot 39 Mukim Beranang, Daerah Ulu Langat, Negeri Selangor measuring 1,010.5 acres for a purchase consideration of RM330,130,350 (“Purchase Consideration”) or RM7.50 per square foot. (“Proposed Acquisition”)
The Said Land is held under Geran 45874 for Lot 39 Mukim Beranang, District of Ulu Langat, Negeri Selangor measuring 1,010.5 acres in total.
The terrain of the Said Land is generally undulating and is zoned for mixed housing development.
The Said Land is situated midway between the towns of Semenyih, Bangi Old Town and Beranang. It is approximately 5 kilometres south of Semenyih; 7 kilometres east of Bangi Old Town; and 2 kilometres north-west of Beranang. The Said Land is also located approximately 12 kilometres south of Kajang town and 25 kilometres south of Kuala Lumpur City Centre.
The travel time to Kuala Lumpur City Centre from the Said Land via Jalan Semenyih, which connects onto the Kajang SILK Highway and further onto the North-South Highway and Kuala Lumpur-Seremban Highway is approximately 40 minutes.
The Said Land is approximately 15 minutes from the proposed Bandar Kajang MRT
Station on the Sungai Buloh-Kajang Line.
Please refer to the attached map for location details of the Said Land.
7. RATIONALE FOR THE PROPOSED ACQUISITION
S P Setia has long established a solid reputation for delivering quality homes within its projects. Its flagship Setia Alam township project in the Shah Alam-Klang corridor has seen the starting price for a standard 20’x70’ double-storey terrace house more than triple from RM218,000 to RM668,000 in just over 7 years. The significant price increase achieved in Setia Alam has been underpinned by the substantial investments and enhancements to the infrastructure, connectivity, amenities and overall livability of the township. The masterfully crafted transformation of what was a former oil-palm plantation in a secondary location into an outstanding township has allowed Setia Alam to offer a unique proposition of sustained value creation to its customers. This has enabled Setia Alam, which truly embodies the Group’s LiveLearnWorkPlay development ethos, to attract owner-occupiers that previously resided in more central locations like Subang Jaya and Petaling Jaya.
S P Setia intends to develop a mixed residential township development project on the Said Land with an estimated Gross Development Value of RM3.5 billion.
The Proposed Acquisition offers S P Setia a good opportunity to tap into strong demand for attractively priced homes by first time owners and other home buyers in the Semenyih-Kajang corridor. The Proposed Acquisition also allows the Group to further reinforce and expand its core business by replicating its proven township development model in an emerging growth corridor that is not presently served by the Group’s more matured projects in the Klang Valley.
Whilst it is currently too preliminary to ascertain the exact product mix, total development cost, expected completion date or expected profits to be derived, Management is confident that the proposed development of the Said Land will be well received and is expected to contribute positively to the future earnings and cash flow of S P Setia.
