The Star

S P Setia scores new milestone in Australia

PETALING JAYA: S P Setia Bhd has achieved a new milestone in its Australian development after successfully acquiring a prime land site in Sydney, New South Wales, at an entry cost point of A$73.3mil (RM220mil).

This will be S P Setia’s maiden foray into New South Wales and the new venture is located at 20 Atchison Street in St Leonards, a neighbourhood described as a combination of urban amenities within a leafy suburb.

According to S P Setia, there are plans to develop a residential development with secondary commercial and retail use estimated at a gross development value (GDV) of A$236mil (RM708mil).

S P Setia group president and chief executive officer Datuk Choong Kai Wai expressed enthusiasm for the expansion.

“This acquisition of 20 Atchison street is an exciting and strategic move for S P Setia in Australia.

“We are proud of our legacy of excellence in the Australian property market, as demonstrated by the completion of the new iconic Melbourne projects: Fulton Lane, Parque, Uno and Sapphire by the Gardens.

“These projects have not only set the highest standards, but have also come to define the S P Setia brand in Australia, known and proven for its unwavering commitment to timely completion and quality,” said Choong in a statement.

According to S P Setia, the location at 20 Atchison Street consists of a 14,790-sq-ft parcel of freehold land and is located only six kms from the Sydney Central Business District or CBD.

It also enjoys proximity to the St Leonards Train Station, the future Crows Nest Metro Station (expected completion at end-2024), the St Leonards Medical Precinct, schools and the Chatswood Chase Shopping Centre, which is a major shopping and commercial precinct.

S P Setia also said the acquisition of 20 Atchison Street aligned perfectly with current market trends.

With an expected influx of 650,000 new migrants settling in Sydney and Melbourne, S P Setia said the demand for quality housing is anticipated to exceed supply, resulting in potential property growth.

According to S P Setia, the commencement of land development at 20 Atchison Street, St Leonards is scheduled for the third quarter of next year, which is perfectly timed to coincide with the projected market recovery.

Choong also said the land acquisition in 20 Atchison Street underscored S P Setia’s commitment in delivering outstanding developments that cater to the needs and aspirations of discerning homebuyers and investors in Australia.

“All our investments in Australia have generated good returns with a strong return on equity.

“We expect this to continue with the Sydney acquisition as S P Setia pursues its expansion strategy in Australia,” said Choong.

S P Setia launched its first Australian development, Fulton Lane, in 2011 and it has since expanded its development frontier and completed multiple projects with a total GDV of over A$2.2bil (RM6.5bil).

Among its latest and notable developments in Australia is the Sapphire by the Gardens project in Melbourne, which played a significant role in achieving S P Setia’s 2022 targets.

“The successful settlement of Sapphire by the Garden showcased S P Setia’s commitment to delivering high-quality developments that meet the demands of the Australian market,” the firm said.

S P Setia said its track record in Australia also showed its dedication to creating impressive and innovative developments that contribute to the growth and vibrancy of the Australian property market.

“The company’s continued success in the region is testament to its commitment to quality, sustainability and enhancing the lives of the communities it serves,” added S P Setia.

As of June 30 this year, the company had a portfolio of 44 ongoing projects, supported by a land bank of 6,870 acres valued at a GDV of RM125.77bil.