The Edge Malaysia

S P Setia to launch maiden project in Sydney in 3Q2024

KUALA LUMPUR (Sept 4): S P Setia Bhd further expanded its business in Australia by acquiring a prime land site in Sydney, New South Wales. It is also the company’s maiden foray into the state.

With an optimal entry cost point of A$73.3 million (RM220 million), the site is located at 20 Atchison Street in St Leonards and only 6km away from Sydney CBD. S P Setia plans to develop the 14,790 sq ft freehold land into a residential development with secondary commercial and retail use. It has an estimated gross development value (GDV) of A$236 million (RM708 million) and is targeted to be launched in the third quarter of 2024 (3Q2024).

In a statement issued on Sunday (Sept 3), S P Setia president and chief executive officer Datuk Choong Kai Wai stated, "The 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 iconic Melbourne projects, namely Fulton Lane, Parque, Uno and Sapphire by the Gardens.”

He added that with a projected shortage of new supply levels for several years and an expected influx of 650,000 new migrants settling in Sydney and Melbourne, the demand for quality housing is anticipated to exceed supply, resulting in potential property growth.

“This exciting land acquisition underscores S P Setia's commitment to 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 strong ROEs (returns on equity). We expect this to continue with the Sydney acquisition as Setia pursues its expansion strategy in Australia,” said Choong.

S P Setia launched its first Australian development, Fulton Lane, in 2011. It has since expanded its development frontier in Australia and has completed multiple projects, with a total GDV of over A$2.2 billion (RM6.5 billion). One of S P Setia's latest and notable developments in Australia is the Sapphire by the Garden project in Melbourne. This project played a significant role in helping the company achieve its 2022 targets.