By BERNAMA
Property developer SP Setia Bhd expects its Federal Hill project with a gross development value (GDV) of RM15 billion to start contributing to sales from 2017 onwards.
Setia Federal Hill Sdn Bhd chairman Khor Chap Jen said the mixed residential and commercial project on a 21.04ha land in Bangsar is expected to be launched in 2017.
Setia Federal Hill is an associate company of SP Setia.
“This project is actually quite a long-haul development, so it will be contributing over the next 15 to 20 years (from 2017),” he told reporters after the signing ceremony for RM1.07 billion syndicated financing facilities agreement today.
The agreement was signed between Setia Federal Hill and CIMB Investment Bank, Maybank, AmInvestment Bank and Commercial Bank of China for a land swap development transaction under the government’s public-private partnership programme.
Under the land swap, the Federal Hill project is in return for Setia Federal Hill undertaking the development of a new integrated health and research institute, known as the National Institute of Health on 16.60ha of land in Setia Alam, Shah Alam.
The development will comprise office buildings, health management institutions, medical research centre, facilities blocks, a kindergarten and staff quarters for the Health Ministry.
Meanwhile, SP Setia said that it is still on track to achieve its RM4 billion sales target despite the challenging economic environment this year.
“We still have RM9.5 billion in unbilled sales. Our profitability and revenue currently is coming from this (sales), which are properties that still in the development phase,” said Khor, who is also SP Setia acting president and chief executive officer.
“If our sales for this year is poor, then maybe in 2017 we might take a hit in terms of revenue, but it will not affect our 2015 sales target as we still have RM9.5 billion in unbilled sales from the previous years,” he added.
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