SP Setia buys land for RM3.5b township

SP Setia Bhd's wholly owned unit, Bukit Indah (Selangor) Sdn Bhd, is buying a piece of land in Beranang, Selangor, to be developed into a mixed residential township with an estimated gross development value of RM3.5 billion.

S P Setia told Bursa Malaysia today that Bukit Indah inked an agreement with Ban Guan Hin Realty today for the proposed purchase of the land measuring 404.2 hectares for about RM330.130 million, cash.

It said the proposed acquisition was expected to be completed during the first half of the company's financial year ending October 31, 2012.

"The proposed acquisition offers S P Setia a good opportunity to tap into the strong demand for attractively priced homes by first time owners and other home buyers in the Semenyih-Kajang corridor," the company said.

SP Setia said the proposed acquisition also allowed the group to further reinforce and expand its core business by replacing its proven township development model in an emerging growth corridor that was not presently served by the group's more matured projects in the Klang Valley.

The company is confident the proposed land development will be well received and contribute positively to the future earnings and cash flow of the company. -- Bernama