WINNER | D’Network @ Setia Eco Park | S P Setia Bhd

Nestled within the exclusive residential enclave of Setia Eco Park in Shah Alam, D’Network is a hybrid solar-powered F&B-focused retail hub that made its debut at the height of the Covid-19 pandemic in 2020. Sitting on a land area of 3.61 acres, the community lifestyle commercial offering also features a pet-friendly park, a lake and the Symphony of Sustainability musical fountain, the Summer Garden, and a pétanque facility.

S P Setia Bhd chief operating officer Datuk Zaini Yusoff says, “We took a bold move to launch D’Network during the pandemic [specifically on Sept 16 and in conjunction with Malaysia Day] because we knew the local community needed a place that caters to their everyday needs as well as a space to connect, commune and rediscover their bond with nature.”

Zaini (centre) with (from left) The Edge Malaysia editor-in-chief Kathy Fong, editor emeritus Au Foong Yee, The Edge Media Group publisher and group CEO Datuk Ho Kay Tat and City & Country editor E Jacqui Chan (Picture by Mohd Izwan Mohd Nazam/The Edge)


We knew the local community needed a place that caters to their everyday needs as well as a space to connect, commune and rediscover their bond with nature.” — Zaini (right) with Ong

As part of the Setia Eco Park master plan ecosystem, D’Network is designed to seamlessly integrate with the adjacent lake, with more than 50% of the total land area allocated for green spaces. This includes a Feel the Earth lawn for people to practise grounding, or walking barefoot on grass or earth, while enjoying the cooler temperature of Setia Eco Park as it is situated next to the Bukit Cerakah Forest Reserve, Zaini highlights.

The 791-acre Setia Eco Park development is a joint venture between S P Setia, the Employees Provident Fund (EPF) and Great Eastern Life Assurance (M) Bhd, and comprises only freehold semi-detached houses and bungalows.

With a lettable floor area of 86,323.63 sq ft, D’Network has 17 units in total, of which 10 are F&B outlets and seven are for services. An additional 10 retail units are being developed and will be launched in December, owing to increasing demand for a variety of F&B outlets at the retail hub.

“We are very excited about the latest development as this would allow us to widen the F&B offerings at our retail hub to ensure we are able to meet the expectations of our customers. This expansion was also in response to the community’s feedback for more variety in cuisines at D’Network,” says Zaini.

“We are also very proud to say that D’Network is the world’s first hybrid solar-powered F&B-focused retail hub,” he adds.

For its commitment to meeting the community’s expectations, D’Network was awarded The Edge Malaysia Property Development Excellence Award 2023 for Excellence in Township Community Hub.

The 3.61-acre hybrid solar-powered F&B-focused retail hub has a net lettable area of 86,323.63 sq ft and 518 photovoltaic panels installed on its rooftop – Pictures by S P Setia

Important to be different

As a small-scale retail hub, D’Network’s strategy is to create a niche market with unique tenants to drive footfall, says Setia Eco Park general manager Desmond Ong. “With the big boys in surrounding areas like Setia City Mall, Setia Taipan 1 and 2, and Sunsuria Forum, we needed to carve out a niche for ourselves as the go-to place for the local residents to enjoy convenience and a spot of relaxation. This strategy has helped us build a loyal customer base.

“In fact, Garden Grocer, which is the anchor tenant occupying 13,000 sq ft, is very different from other popular grocers in the Klang Valley like Jaya Grocer. What’s unique about this grocer is that it has its own traditional Chinese medicine and herbs hall and offers very fresh seafood from Sekinchan,” he shares.

Other notable tenants at D’Network include San Francisco Coffee, The Grange restaurant and bar, Grand Ya Lim seafood restaurant, Sushi Hana and Hikari Japanese restaurants, Mr Fish seafood noodle restaurant, Bo The Avocado smoothie café, YE Boulangerie & Patisserie bakery, R.E.A.L Kids preschool and Dr Ko skin and aesthetic clinic.

While attracting tenants to D’Network was challenging at the start, Ong says this is no longer the case. “Now, instead of us going to look for tenants, the tenants would come look for us. So, we have to be more selective and ensure that the tenants we select won’t compete with the existing tenants.”

According to Ong, the second-term tenancy renewal at D’Network was recently completed with a healthy 20% reversion rate that is in line with the market. “This is something that we are very pleased with as it means our tenants are enjoying growing and sustainable sales to be able to commit to the rent increment. It is very important to us that this community hub can continue to flourish.”

He adds that the rents for the additional 10 soon-to-open retail lots will be at least 30% higher than the current rate. “The new lots will command a higher rental because the demand is there and they will predominantly be F&B.”

The retail hub’s Feel the Earth lawn for people to practise grounding

In addition to the immediate Setia Eco Park community, D’Network also attracts visitors from the mature Setia Alam township nearby as well as from the wider Shah Alam and Klang areas.

It’s important to be niche and different, says Zaini. “Furthermore, the ambience at D’Network is totally different with its low-density, open-air concept that offers natural ventilation, better air quality and al fresco dining. It’s a good place for families.” He notes that D’Network currently enjoys an average footfall of about 20,000 monthly.

In line with its community building initiatives and to further boost the overall footfall of D’Network, the team continues to organise community events.

“We do a lot of community events, especially during all the major festive seasons in Malaysia, namely Chinese New Year, Hari Raya and Deepavali. We have also had live bands, workshops for children, cultural dances and community activities, which have received a lot of good response from the community as well as outside Setia Eco Park. We have also had Mercedes and BMW do car roadshows here, which have attracted a good crowd,” says Ong.

D’Network is designed to seamlessly integrate with the adjacent lake, with more than 50% of the total land area allocated for green spaces

“In fact, D’Network’s Aurora Night event in particular attracted a footfall of about 1,000 that night and it was standing room only. This type of event helps bring people to D’Network and once they have visited, they will come again.”

Meanwhile, a neighbourhood retail such as D’Network is especially helpful during the lockdowns imposed during the pandemic. “When people needed something that was within the allowed radius, they didn’t have to really go out to look for it. Plus, D’Network’s car park is very near the shops and grocer, so they can just park, grab and go,” says Ong.

D’Network has boosted the developer’s property sales, Ong adds. “During D’Network’s official launch on Sept 16, 2020, we locked in RM50 million in property sales on the day itself. This goes to show that nowadays, when people look for a place to stay, they want the facilities and convenience in terms of retail and services, especially F&B.”

Currently, Setia Eco Park is around 70% to 80% developed and has a resident population of about 8,000.

D’Network’s Summer Garden (left) and pet-friendly park (above) – Pictures by Sam Fong/The Edge

Sustainable feats

According to Zaini, D’Network has 518 photovoltaic panels installed on its rooftop, generating 345kWp of solar power that complements the traditional electricity grid supply. “Of this sustainable energy, 207kWp is dedicated to powering D’Network’s common areas, corridor lighting and fans, and the Symphony of Sustainability — the world’s first solar-powered musical fountain which charges up during the day and illuminates at night. This solar power also supplies energy to the Summer Garden, the pétanque court, the playground and the pet-friendly park. Last checked, we can save about RM4,000 a month in electricity consumption from using solar power,” he adds.

Meanwhile, the remaining 138kWp of solar power generated at D’Network is used to power Elizabeth Falls, a water feature nearby. “The English-inspired waterfall is the world’s first solar-powered hybrid waterfall,” says Zaini.

Another sustainable initiative at D’Network is food waste processing. “We have a food waste composting machine that recycles food waste from the F&B outlets and converts it into fertiliser that is used for the Summer Garden and all the landscape,” he adds.

In terms of building materials, Zaini highlights that approximately 45% of the materials used in the construction of D’Network were obtained from sustainable sources. “As an example, fair faced bricks were utilised due to their capacity to limit heat transfer from the external environment into the building, consequently reducing the need for air conditioning. The use of fair faced bricks also eliminates the necessity for plaster and paint, thereby reducing long-term maintenance as the building matures.”

In terms of future plans for D’Network, Zaini says there is limited space for future expansion after the 10 new retail lots are completed by the end of the year. “The only available commercial parcel left is our Setia Eco Park sales office, which is around six acres, which can be redeveloped after we complete the entire Setia Eco Park development and the rest of the staff are transferred to our corporate headquarters nearby.

“Nonetheless, if it [becomes too big], the ambience won’t be there any more. So, we will have to keep the balance in terms of size and its purpose as a neighbourhood mall.”

KUALA LUMPUR (Dec 4): S P Setia scored double wins at MIP MyPLACE Awards 2023 with its Setia Bayuemas Lake Park and Setia EcoHill 2’s South Creek Park projects.

Setia Bayuemas Lake Park took the Emerald Winner in Category 3: Community and Neighbourhood Park (Subcategory 2: Private sector) while South Creek Park, located in Setia EcoHill 2, Semenyih, emerged as the Diamond Winner title in Category 2: City and Town Park (Subcategory 1: Below 50 Hectares).

Organised by the Malaysian Institute of Planners on Dec 1, MIP MyPLACE Awards acknowledges projects that emphasise initiatives for the improvement of public spaces and placemaking, which bring positive impacts and benefits to their local communities.

The Community and Neighbourhood Park award category acknowledges projects emphasising the creation, development, improvement, redevelopment, rejuvenation, and maintenance of community parks within neighbourhood areas.

The City and Town Park award category honours projects’ placemaking efforts in creating, improving, redeveloping, rejuvenating, and maintaining parks within their cities.

“The conservation of nature is the foundation for sustaining our planet, community, and economy. We are proud to be recognised by industry experts as the exemplar in developing green spaces. These accolades further fuel our commitment to continue shaping sustainable communities that enrich lifestyles, fostering a harmonious coexistence where both people and the environment thrive,” said Datuk Zaini Yusoff, chief operating officer of S P Setia.

“Through thorough research with ecologists and careful planning, we have integrated biomimicry elements into the design of Setia Bayuemas Lake Park. The outcome is a flourishing ecosystem where native fishes and aquatic life thrive, ensuring long-term sustainability,” said Razly Mohammad Rus, divisional general manager of S P Setia for Setia Bayuemas Lake Park.

As for South Creek Park, Koh Sooi Meng, divisional general manager of S P Setia for South Creek Park highlighted its role in bringing the community together, serving as a focal point for connection, communion, and rediscovering the bond with nature. “We believe in living a sustainable lifestyle without compromising the conveniences and quality of modern living. To minimise environmental impact, we adopt energy-efficient lighting and green infrastructures in the park,” said Koh.

Spanning 10 acres, Setia Bayuemas Lake Park serves as a focal point for residents to relax and engage in outdoor activities in the heart of southern Klang, Selangor. Sustainably designed to create a conducive living environment for native flora and fauna, the park exemplifies Setia’s commitment to creating sustainable communities while preserving biodiversity.

Nestled within Setia EcoHill 2 township in Semenyih, Selangor, South Creek Park is a vibrant community-centric space representing a seamless integration of communities and nature. Aligned with the township’s Live Green philosophy, South Creek Park features green hills, brooks, and creeks nestled within natural terrain.

Sweeping into the boardroom with his usual high energy and offering a firm handshake, S P Setia Bhd president and CEO Datuk Choong Kai Wai is a man with a mission. Clearly focused on taking the company to greater heights, he speaks candidly about how the company is growing in Malaysia and abroad.

Key initiatives under his watch include a push to reduce the company’s gearing by disposing of non-core land, which gives S P Setia additional cash to acquire land that can be turned around quickly and provide the necessary revenue to bolster the company’s growth.

Choong (centre) with (from left) The Edge Malaysia editor-in-chief Kathy Fong, editor emeritus Au Foong Yee, The Edge Media Group publisher and group CEO Ho Kay Tat and City & Country editor E Jacqui Chan (Picture by Mohd Izwan Mohd Nazam/The Edge)

The group is also diversifying its product line by going into the development of industrial parks in a big way. Three sites on several hundred acres have been set aside for this task. Choong sees great potential in this sector, as the demand for industrial properties has been high.

Meanwhile, the company’s financial performance in terms of revenue earned has improved in FY2022 compared to FY2021, achieving RM4.452 billion compared to RM3.762 billion.

Choong says being on The Edge Malaysia’s Top Property Developers Awards list once again reminds him and his team that they must always push the envelope while negotiating headwinds and challenges faced by everyone in the industry.

The following are excerpts from City & Country’s interview with Choong.

City & Country: What have been some company highlights?

Datuk Choong Kai Wai: We continue to do well in our township developments. We now want to go for regional growth, for example, in Vietnam. We finished two projects in Melbourne, Australia, which are UNO Melbourne, and Sapphire by the Gardens and Shangri-La hotel. They gave us good returns and it will be natural for us to continue to put capital allocation in the right place with good capital returns.

Recently, you heard that we bought a piece of Sydney land on Atchison Street, St Leonards. It is only 0.34 acres, will have an estimated GDV (gross development value) of RM708 million and should commence next year, in the third quarter. There should be 126 units in a 30-storey tower. It is our first time to Sydney after eight years of trying. It’s a good piece of land and will give us a good return and a quick turnaround. It is in the suburbs, where the demographic is good.

S P Setia acquired the prime site of 20 Atchison Street in Sydney, New South Wales, for its first Sydney project after eight years of trying to enter the market there – Photo by S P Setia

What are your regional growth plans?

Right now is the right time to go to Vietnam. Australia is still very good and resilient because, owing to Covid-19, in the last two years, there have been no migrants coming in. Now, they’re coming back. So, it’s a good time to be in Australia. As I say, go for places with population growth, that is very important. In a city that grows, you can’t go too wrong.

Where else are you looking regionally?

Of course, Singapore. We just finished one project called Daintree Residence in 2022, in Bukit Timah. We’re exploring Singapore in a very careful manner. Indonesia, not yet, but, of course, we welcome any opportunities.

Anything that comes to our desk, we go through it … We don’t want to rule out any country. We look at the risk and returns.

What has S P Setia been busy with lately?

We are looking into three sites for industrial parks that we’re going into in a very big way next year. Very, very big way. They are Setia Alaman in Shah Alam, with 399 acres and an estimated GDV of RM3.09 billion; Tanjung Kupang in Johor, near Tanjung Pelepas, with 307 acres and an estimated GDV of RM1.87 billion; and Setia Fontaines in Penang, where we are planning to zone 323 acres of the 1,700 acres for industrial use. The estimated GDV is RM1.68 billion. [The industrial parks] will give us very consistent revenue for the next five to eight years.

Also, we have different models in our industrial parks. We can sell the land, sell-to-build, build-to-sell and build-to-lease.

We also have plans to have a REIT (real estate investment trust). So, that will also bring in good cash flow. At the same time, we can become REIT managers, which is another stream of income.

We are also going into collaboration. We have almost 80 acres of commercial land. We cannot be building all the office towers, so we will probably do a joint venture with someone who can build them, and we will do the management for them.

Homes in Laelia II in Setia Bayuemas in Klang, Selangor, offer a loft-style design – Photo by S P Setia

The commerical offering in Pelangi Avenue in Taman Pelangi, Johor – Photo by S P Setia

Then, there is the 52 acres Setia Federal Hill on Jalan Bangsar. We will kick off that mixed-use project with our first product, a residential tower, with units of 480 to 1,329 sq ft at between RM650,000 and RM1.6 million. It will probably be launched in the third quarter of next year.

Of course, Battersea Power Station is a long-term investment; it is good for another 10 to 15 years. We asset-manage the power station. Then, we get returns. Some of the retail components still belong to the consortium. So it will be a long-term thing.

Last year, I said we were unlocking the land value. It is happening because we have land worth RM150 billion in GDV. If every year, we do RM4 billion, it will take 35 years to complete. There’s no point in holding it, especially when there are huge borrowings. You need to balance it. Therefore, we sold 500 acres in Semenyih to Mah Sing Group Bhd and we sold 960 acres in Tebrau, Johor, to Scientex Bhd.

An artist’s impression of the view from atop KL Eco City – Photo by S P Setia

At the same time, we are going to buy a piece of land that we are eyeing in Setia Alam Impian; we are going to acquire it from another developer. So, we continue to be very efficient in our land development.

We are also championing our green agenda. In fact, we have already started with the installation of roof solar panels and all houses will be EV (electric vehicle)-ready. Rainwater harvesting is standard.

Our head office already has solar panels and all our commercial properties will have solar panels installed. By the end of this year, most of our commercial properties will already have solar panels. It is in progress.

What significant milestones have been achieved in the last financial year?

Our borrowings came down drastically over the last two years — by almost RM2.9 billion. We have identified a new growth area, which is industrial development, which will bring in constant income.

We have identified properties that can be REIT-able

when the time comes. We have identified and will continue to be in places where we are strong, such as Vietnam and Australia.

At the same time, we are digitalising what we can.

What challenges will the property market experience in the coming years?

The challenges, of course, are rising costs, high interest costs and construction costs. Everybody is facing the same thing. No doubt about that. For you to maintain a margin, you have to be more efficient.

We monitor every small thing. Every time we have anybody log in to our site, we know how quickly we respond to them. For customer service, you have to be really ahead of everybody else. You cannot take your own sweet time to respond to people. Now, we are going to digitalise the system. The minute somebody replies, at least you have a chat box, an AI chat box, that says, ‘Hi, how are you?’ — anything. At least answer them first. A survey done shows that most the developers, including S P Setia, on average, take 2.7 days to reply to a customer. We wanted to make it within five minutes, not even half an hour.

Are there any updates on significant on-going projects?

The most significant is the Setia Alaman industrial park. We are getting the rezoning done and already have ready buyers. That will not only bring employment but also profit to S P Setia, as well as foreign direct investment income. We build factories and provide employment. This is a very good thing. Apart from making a profit, of course, we’ll be a very well-managed, world-class industrial park.

How will S P Setia’s green agenda translate into its products?

The easiest way to go green is to try to save energy first. Saving energy means using the green switch, which turns off all the non-essential lights and products in the house; use LED lights.

Next, try to use green energy such as that from solar farms, not from burning coal.

So, we educate our buyers to, first of all, save energy. Use all the green products. Try not to use plastic. The second thing is that if you do have

bioenergy, make sure it’s from solar. Or from solar farming energy, clean energy.

We also have Box 366, which are pillars at S P Setia homes that have two sections, one for food and the other for parcels sent by delivery services. So, it’s secure.

And then the material we use will be eco-friendly. But our houses will teach you how to save energy. The minute you step into it, you know that there’s a green agenda in this house. Basically, it will be an energy-efficient and multi-generational house.

What are the plans for the company?

The big future for S P Setia will be to organically grow our sales. Malaysia will be at the forefront, our mainstay. We will have regional sales from Vietnam and Australia. We are still studying Indonesia. Again, London will be another 10 to 15 years through the Battersea Power Station.

We will have a very efficient workforce. We will go into digitalisation and innovation. We will create a new revenue stream from industrial parks. We are planning to go into REITs. We are going into an asset-based structure, which means we manage as well as have joint ventures. Nowadays, it’s more about collaboration than just you doing it on your own.

KLANG, SELANGOR – S P Setia is gearing up to launch another collection of freehold double-storey shop offices, Bayu Avenue, in its master-planned township, Setia Bayuemas on 25 November 2023. This marks the third phase of commercial development within the township.

Bayu Avenue is positioned as an ergonomic commercial development in the bustling Klang district, comprising a limited offering of 16 units of double-storey shop offices with a gross development value (GDV) of RM21.86 million and is targeted for completion in November 2026. Razly Mohammad Rus, divisional general manager of S P Setia, stated “Bayu Avenue presents a rare opportunity for local business owners to grow their businesses within a well-conceived township, meticulously curated to suit their business needs. The commercial hub is set to elevate the commercial vibrancy of Setia Bayuemas while catering to the everyday needs of the township’s community, offering convenience and a holistic living experience.”

Aligning with Setia’s commitment to create sustainable communities that thrive with nature, the latest commercial hub in Setia Bayuemas stands as a testament to the harmonious coexistence of human and nature. While strategically located along the township’s high-traffic main access road, the development also enjoys close proximity to the township’s award-winning Setia Bayuemas Lake Park, offering unparalleled modern-day conveniences within verdant nature.

“Adapting to the diverse needs of consumers and business owners, the neighbourhood shop offices feature ample parking spaces, various visitor areas, as well as dual entries at both the front and rear of the shop offices,” added Razly. Despite the significant rise of e-commerce, brick-and-mortar stores aim to offer experiences that cannot be replicated by screens.

With an emphasis on functionality and adaptability, Bayu Avenue’s open-layout design presents a dynamic and flexible canvas for business owners to personalised the space to their likings.

With an emphasis on functionality and adaptability, Bayu Avenue’s open-layout design presents a dynamic and flexible canvas for business owners to personalised the space to their likings, maximising its retail experience. The front-facing floor-to-ceiling windows frame the expansive lush greenery and vibrant neighbourhoods that surround the commercial hub, visually stretching out the space with natural light and views of the outdoors.

With a competitive price starting from RM1.15 million, the shop offices boast a land size of 22ft by 70ft each, with built-up areas ranging from 4,873 sq.ft to 4,986 sq.ft for corner units, 2,986 sq.ft for intermediate units, and a slightly larger built-up area of 6,026 sq.ft for end lots. Situated in the heart of southern Klang, Selangor, Setia Bayuemas is a dynamic community seamlessly integrating contemporary living with nature, allowing its residents to live, learn, work, and play within the township.

Featuring a range of affordable housing options, including apartments, landed terraces, cluster homes, semi-detached, and bungalows, along with a diverse mix of commercial and retail spaces, the township is strategically connected through three major highways—North-South Expressway (ELITE), Shah Alam Expressway (KESAS). The township is also home to the iconic Setia Bayuemas Lake Park, recognised with the Gold award in Landscape Planning at The Edge Malaysia Best Managed & Sustainable Property Awards 2023. Housing 19 native bird species, this solar-powered park serves as a communal space for the surrounding communities to connect with nature.

Drop by Setia Bayuemas Welcome Centre to learn more about Bayu Avenue shop offices or reach out to Setia’s friendly sales team at 03 3325 1700 for any inquiries.

PETALING JAYA: S P Setia Bhd has secured sales amounting to RM3.89bil for the nine months ended Sept 30, 2023, with local projects contributing RM3.37bil or 87% of total sales.

The property developer said the remaining RM523mil, or about 13%, was generated from international sales.

“The central region accounted for 54% of local sales, followed by the southern region with a 40% contribution.

“The group cleared completed inventories, with RM804mil sold during this period,” it said in a statement.

As at Sept 30, 2023, the group secured a total booking of RM450mil.

For the third quarter ended Sept 30, 2023, S P Setia’s net profit stood at RM51.8mil. Revenue grew 25% to RM1.08bil from RM860.9mil quarter-on-quarter.

During the third quarter, S P Setia launched a range of projects including RM498.7mil of landed properties in the central and southern regions and two-storey commercial retail and office units at the Setia Fontaines City Centre Business Hub in Penang.

“The take-up rate for these new developments has been encouraging, with a 97% occupancy rate observed in the new phase of landed residential units in Bandar Kinrara and about 60% of units sold in townships such as Setia Bayuemas and Setia Fontaines,” it said.

The group also expanded internationally by acquiring a prime land in St Leonards, Sydney, Australia.

“With a land area of 1,374 sq m, the acquisition marks the company’s first venture into New South Wales,” it said.

S P Setia said it aims to establish a prominent presence in the highly-sought-after Sydney property market.

“This strategic move reinforces S P Setia’s commitment to regional growth and contributes to the future revenue pipeline for the group.”

S P Setia also announced the sale of 17.99 acres of land in Setia City, Selangor, as part of its land bank strategy.

“The sale aims to unlock value for the township and aligns with the group’s vision.

“The land will be sold to KSL Bestari Sdn Bhd for RM228.8mil, boosting the development of Setia City and contribute to the group’s bottom line.

“Proceeds will be used to fund new projects and reduce debt, positively affecting profits, net assets and cash balance,” it said.

S P Setia also said it remains focused on maintaining a sustainable overall performance.

“With 44 ongoing projects and unbilled sales of RM6.76bil as at Sept 30, 2023, the group demonstrates positive earnings visibility in the short to mid term, despite the challenging economic conditions and market headwinds.

“On the international front, UNO Melbourne (Stage 2) development in Australia has been completed in September 2023 and is expected to significantly contribute to the final quarter results,” it said.

S P Setia added that it remains vigilant in balancing its capital structure and effectively manages a de-gearing programme in pursuit of a sustainable overall performance.

“The net gearing ratio at the end of the third quarter of 2023 stood at 0.53 times, reduced from 0.57 times as at Dec 31, 2022.

“Additionally, S P Setia holds an effective remaining land bank of 5,549 acres with an estimated gross development value of RM113.11bil, ensuring a strong foundation for future growth,” it said.

In the same statement, S P Setia president and chief executive officer Datuk Choong Kai Wai said he was pleased with the group’s robust sales performance and progress in expanding its presence locally and internationally.

“This has been possible due to our ability to anticipate market changes, continued brand loyalty among our customers and our commitment to quality in our projects.

“We remain optimistic about the future of the Malaysian property market and will continue to pursue growth opportunities both in Malaysia and overseas,” he said.

Choong added that S P Setia will remain vigilant in managing its capital structure and effectively pursue de-gearing initiatives, which will significantly improve its financial flexibility and contribute to its overall performance.

KUALA LUMPUR (Nov 23): S P Setia Bhd has released its financial results for the thirdquarter of 2023 (3Q2023), with QoQ revenue growing 25% to RM1.08 billion from RM860.9 million. Net profit came in at RM51.8 million in the 3Q ended Sept 30, 2023.

The group secured total sales of RM3.89 billion for the nine months ended Sept 30, 2023. Local projects contributed RM3.37 billion, or approximately 87%of the sales, while the remaining RM523 million or approximately 13%, were generated from international sales.

The Central region accounted for 54% of local sales, followed by the Southern region with a 40% sales contribution. The group cleared completed inventories, with RM804 million sold during this period. As of Sept 30, 2023, the group has secured a total booking of RM450 million.

During 3QFY2023, S P Setia launched a number of projects, including RM498.7 million of landed properties in the Central and Southern regions and 2-storey commercial retail and office units of the Setia Fontaines City Centre Business Hub in Penang.

The company revealed that take-up rate for these new developments has been encouraging, with a 97% occupancy rate observed in the new phase of landed residential units in Bandar Kinrara and approximately 60% of units sold in townships such as Setia Bayuemas and Setia Fontaines.

Landbank strategy

S P Setia also just announced the sale of 17.99 acres of land in Setia City, Selangor, as part of its landbank strategy.

The land will be sold to KSL Bestari Sdn Bhd for RM228.8 million, boosting the development of Setia City and contributing to the the company’s bottom line. Proceeds will fund new projects and reduce debt, positively affecting profits, net assets, and cash balance.

S P Setia stated that it remains focused on maintaining a sustainable overall performance. With 44 ongoing projects and unbilled sales of RM6.76 billion as of Sept 30 2023, “the group demonstrates positive earnings visibility in the short to mid-term despite the challenging economic conditions and market headwinds”.

The group “remains vigilant in balancing its capital structure and effectively manage de-gearing program in pursuits of a sustainable overall performance”. The net gearing ratio at the end of 3Q2023 stood at 0.53x, reduced from 0.57x as at Dec 31, 2022.

S P Setia holds an effective remaining land bank of 5,549 acres with an estimated GDV of RM113.11 billion, ensuring a strong foundation for future growth.

International front

S P Setia expanded internationally by acquiring a prime land site in St Leonards, Sydney, Australia. With a land area of 1,374 sq m, this acquisition marks the company’s first venture into New South Wales.

It aims to establish a prominent presence in the highly sought-after Sydney property market. This strategic move reinforces S P Setia’s commitment to regional growth and contributes to the future revenue pipeline for the group.

Meanwhile, UNO Melbourne (Stage 2) development project in Australia has been completed in September 2023 and is expected to significantly contribute to the final quarter’s results.

‘Vigilant in managing our capital structure’

Datuk Choong Kai Wai (pictured), president & CEO of S P Setia stated: “We are pleased with our robust sales performance and progress in expanding our presence locally and internationally. This has been possible due to our ability to anticipate market changes, continued brand loyalty among our customers, and our commitment to quality in our projects. We remain optimistic about the future of the Malaysian property market and will continue to pursue growth opportunities both in Malaysia and overseas.”

“We remain vigilant in managing our capital structure and effectively pursuing de-gearing initiatives, which will significantly improve our financial flexibility and contribute to our overall performance,” he added.

KUALA LUMPUR: S P Setia will launch Ferrous 2, the second phase of the Ferrous double-storey terraced home collection, in Setia AlamImpian, Selangor, on Sunday following the successful premiere of the initial phase in March.

According to the developer, Ferrous 2 has more than 700 registered interests.

“This denotes strong interest in this affordable home collection, appealing to first-time homebuyers or young, growing families looking to upgrade to a larger house within a well-planned township,” said its chief operating officer, Datuk Zaini Yusoff.

Ferrous 2, which occupies 7.84 acres and has a gross development value of RM110.07 million, is made up of 116 double-storey terraced houses.

These properties, which have built-up areas of 1,900 to 2,097 square feet with four bedrooms and four baths, start at RM885,800.

Zaini said that Ferrous 2’s curation of the residences is what distinguishes them from other terraced houses, since it reflects the newest trends in homebuyer preferences.

Nestled within the township’s Industrial Arts Precinct, the design of Ferrous 2 showcases an industrial aesthetic with architectural features such as steel, aluminum, facing bricks, and exposed concrete incorporated into the building façade.

The homes have an open-concept design with roomy living and dining areas. Future-ready and sustainable features encourage more intelligent and environmentally friendly living. An EV charging station, a green switch, and a smart digital lock are some of these characteristics.

Discover a world where comfort, style, space and convenience converge, redefining your notion of contemporary luxury.

Welcome to Setia Fontaines, a sprawling 1,691-acre mega township in Kepala Batas, just North of Seberang Perai, thoughtfully crafted by the multi-award-winning S P Setia. Setia Fontaines enjoys a prime location, conveniently situated just a stone’s throw away from the vibrant Penang Island, as well as the bustling towns of Bukit Mertajam, Kulim, Simpang Ampat, and Sungai Petani.

As you embark on a journey through this township, you’ll discover an array of thoughtfully designed freehold residences including terraced, bungalow, semi-detached, and linked homes, as well as contemporary business suites and shop offices, as the development seamlessly combines the best of residential and commercial spaces.

Among the fully sold offerings are Nusacinta, which comprises a collection of guarded 1 and 2-storey terraces, link semidetached, semidetached and bungalow; Amansara South, featuring 394 units of terrace homes; and the City Centre Business Hub 1, featuring 111 units of shop offices.

The recently launched Amansara North on the other hand boasts a collection of single, double-storey terraces and superlink homes.

City of the North

Dubbed the future City of the North, upon completion, the fully integrated township will comprise retail components and a 100-acre Heritage Park that features the largest Musical Fountain in the northern region.

Introducing Amansara North

From the quaint elegance of single-storey terraces to the spacious allure of double-storey superlinks, Amansara North presents a harmonious collection of five distinct property types: Charm, Rejoice, Glamour, Shine, and Allure.

Each layout type has a unique feature that is a testament to S P Setia’s commitment to architectural excellence and innovative urban living. Rejoice for example offers a beautiful internal courtyard, while Allure, the biggest double-storey superlink in Setia Fontaines features all en suite rooms.

To date, phase 1 of Amansara North received an overwhelming response with all the single-storey terrace homes fully sold. Those looking to get in on the action should hurry as the final phase of Amansara North single-storey terrace homes that were just recently launched are also selling fast.

Resort-Style Amenities

Boasting a harmonious blend of modernity and natural beauty, Setia Fontaines beckons with a promise of a vibrant community, lush landscapes, and unparalleled convenience. Indulge in a life of leisure and wellness at Setia Fontaines, where resort-style amenities redefine the art of modern living.

Wander through the beautifully landscaped jogging paths that wind their way through lush greenery, inviting you to embark on refreshing outdoor escapades. Feel the breeze on your face as you traverse the cycling tracks, a symphony of tranquillity and adventure for those seeking a dynamic lifestyle. Immerse yourself in the wellness areas, specially crafted to cater to the health-conscious, offering a sanctuary for rejuvenation and self-care.

At Setia Fontaines, these amenities are more than just spaces – they’re an embodiment of the community’s commitment to an active and balanced lifestyle, where nature’s embrace meets contemporary living.

Road to better connectivity

Exciting news for commuting residents as the newly opened Link Road gracefully unfurls its pathways, seamlessly connecting Jalan Tun Hamdan and Jalan Tasek Gelugor.

This vital link breathes newfound life into the township, enhancing connectivity and propelling Setia Fontaines towards its vision of becoming the City of The North. With this enhanced accessibility, Setia Fontaines opens its arms to an even brighter future, transforming into a hub of activity and vitality.

On top of that, it is only a 10-minute drive to the North-South Expressway (PLUS), 15 minutes away from the Butterworth Outer Ring Road and Butterworth-Kulim Expressway (respectively) and 20 minutes away from the Penang Bridge.

Investment opportunity in Bandar Setia Fontaines, Penang

The land scarcity issue in Penang Island has long contributed to the continuous spillover of people, which led to the burgeoning demand for more expansive township developments on the mainland.

While the mainland counterpart has always been viewed as the pocket-friendly alternative, Bandar Setia Fontaines which is surrounded by existing amenities and facilities, including schools and tertiary educational institutions, banks, hospitals, supermarkets and shopping malls, has a lot more to offer.

What’s more, the Penang Technology Park which was launched in March this year is located merely 5 minutes away from Bandar Setia Fontaines. Upon completion, it is expected to create 30,000 new job opportunities, contributing to the new economic growth of the area.

The Link Road which connects Bandar Setia Fontaines to the main trunk roads via Jalan Tun Hamdan in the north and Jalan Tasek Gelugor in the south, will further foster the opportunity to benefit in the untapped growth potential of the Setia Fountaines.

Want to know more about Amansara North @ Setia Fontaines and the wonderful quality of life offered here? Visit their website, call 04 5762255 or visit their showroom.

Battersea Power Station by Wilkinson Eyre has been named as the overall winner of the New London Awards 2023, with The Black & White Building by Waugh Thistleton Architects picked for the Mayor’s Prize.

Organised by NLA and supported by the Mayor of London, the New London Awards celebrate all scale of projects, from community-led to large-scale mixed-use developments, both built and unbuilt, that contribute to the creation of a more sustainable, civilised, and egalitarian London.

The New London Awards were presented during a lunch at The Guildhall on Wednesday 15 November, with over 650 of the capital’s leading decision-makers and professionals across development, design, planning and construction in attendance. 24 awards were presented across numerous categories.

Among the awards was the People’s Choice Award – which saw over 4,000 public votes for the favourite shortlisted project – which was presented to the Lexi Cinema and Lexi Hub by RISE Design Studio, while Lord Peter Hendy was named New Londoner of the Year.

Overall winner: Battersea Power Station

Battersea Power Station is at the heart of a £9bn regeneration project, which has seen the Grade II* listed building meticulously restored to its former glory and transformed into a new riverside neighbourhood.

A painstaking approach to conservation has resulted in a one-of-a-kind destination with 254 new residential apartments, over 100 shops, bars and restaurants, offices, and unique events venues.

Laying derelict for 30 years, the restoration of Battersea Power Station involved major conservation work including the re-building of the four iconic chimneys, the replacement of 1.75 million bricks, and the restoration of Control Rooms A & B.
 
Peter Murray OBE, Co-founder of NLA and Chair of the judging panel said:“The rescue of Battersea Power Station has been a long, painstaking and expensive project that has required huge commitment of all those involved.

“Londoners should be grateful to the international investment team that made this possible. The selection of Wilkinson Eyre as architects for the renovation was a clever move by the developer. The architects’ understanding of the industrial aesthetic has delivered an end result that responds to its history but provides an efficient and elegant environment for modern use, while at the same time retaining the impact of its awesome scale.

“The end result is an object lesson for us all in a period when re-use of our building stock is so vital. The jury agreed that Battersea Power Station’s retrofit was of international significance and that it sends an important message about London’s response to the climate crisis to the rest of the world.”
 
Mayor’s prize: The Black & White Building

The Black & White Building is a landmark mass-timber office that sets new standards for sustainable workspace in central London and beyond. With a hybrid engineered timber superstructure comprising a beech LVL frame with CLT slabs and core, the seven-storey, 4,480 sqm mass-timber building in Shoreditch sets out to demonstrate that timber is not just a viable alternative to the conventional concrete and steel used to build offices, but the preferable option when it comes to performance and sustainability.

The Deputy Mayor for Planning, Skills and Regeneration, Jules Pipe, said:“It’s vital that we’re designing the buildings of the future that will help us become a net-zero city by 2030.

“It’s my pleasure to award the Mayor’s Prize for Zero Carbon to the ‘Black and White Building’. This project showcases how design innovation and sustainable construction can be harnessed to create net-zero buildings that not only meet the needs of Londoners now, but can be adapted in future as needs change.

“I also wish to congratulate Battersea Power Station for being named the overall winner of the New London Awards, and the highly commended ‘Angel Yard’ scheme which is delivering a new enterprise hub to the local community in Edmonton – helping to build a better, more prosperous London for everyone.”

Ever since it reopened to great fanfare on Oct 14, 2022, London’s shiny (re)new(ed) Battersea Power Station has welcomed over 11 million visitors to the newly minted neighbourhood just south of the Thames, and across from posh Chelsea. For the many Malaysians who have paid it a visit — or, better yet, invested in homes or businesses here — it is understandable that the world-renowned Grade II-listed landmark evokes national pride. After all, it is no secret that a Malaysian consortium, comprising S P Setia Bhd, Sime Darby Property Bhd and the Employees Provident Fund (EPF), together with the support of other private and public sector stakeholders were the key drivers in helping the iconic power station roar back to life.

It wasn’t an easy task, of course. Battersea Power Station was purchased by the current shareholders in 2012. A complex transaction, it took 18 months and involved a team of hundreds, including advisers, financiers and solicitors, before the deal was sealed. Meanwhile, the £9 billion (RM52 billion) regeneration project, which covers 42 acres of prime London real estate and includes 3.5 million sq ft of mixed-use commercial space, a hotel and 4,000 new residences, took eight long years to build before it officially opened to the public.

Now that the dust of the exciting first year has settled, it is equally clear the drivers of the mammoth project do not intend to rest on their laurels anytime soon.

“It has been a landmark year, a fast-paced year, establishing Battersea Power Station as a neighbourhood for all,” says Tan Sri Jagan Sabapathy, chairman of Battersea Project Holding Co Ltd. “While an extraordinary feat to convert this derelict ruin into a mixed-use destination for the public, involving years of painstaking restoration work and the immense fortitude, expertise and investment of our Malaysian shareholders, Permodalan Nasional Bhd (PNB), Sime Darby Property, S P Setia and the EPF, the opening of Battersea Power Station was just the beginning.”

Datuk Choong Kai Wai, president and CEO of S P Setia, happily adds: “It has been an absolute triumph! We welcomed over 11 million visitors in the past year and are targeting 15 million by year end. Year Two, here we come!”

Datuk Azmir Merican, chairman of Battersea Power Station Development Co Ltd and group managing director of Sime Darby Property, points out that the consortium “succeeded where many couldn’t. Restoring one of the world’s largest brick buildings that is over 80 years old was a huge challenge. The chimneys alone had to undergo a two-year replacement programme which saw them painstakingly dismantled and then rebuilt, using the same materials and techniques as the 1930s originals. We wanted to give Battersea new life while ensuring it be safeguarded for future generations”.

The Battersea Games at Battersea Power Station (Photo: Charlie Round-Turner)

Come one, come all

While the shareholder consortium was confident Battersea Power Station would complement already-exciting London, they were also well aware that launching a major new retail and leisure environment in a city that houses so many established neighbourhoods was not going to be a doddle.

“Launch a major retail and leisure offering in a city already bursting with options? Talk about a challenge,” Choong exclaims. “But guess what? Battersea Power Station is no ordinary place. Our visitor numbers speak for themselves, proving that when you’ve got something special, people will come from far and wide to experience it.”

“We’ve been busy encouraging people to return time and again and are delighted with the public reception,” Jagan assures. “So many Londoners and international visitors are impressed to see how we have transformed the building and given it a new lease of life. Our recent Battersea Games, a summer-long festival of sports and games, was a personal highlight for me, demonstrating how quickly the local community has accepted Battersea Power Station as part of London’s cultural, retail and leisure landscape, and we look forward to continuing the momentum into the second year.”

Choong attests to that statement, adding how the summer extravaganza “showcased just how quickly the community has embraced Battersea Power Station as an integral part of London’s cultural, retail and leisure scene”.

“Changing consumer habits is always challenging. However, we firmly believe we offer something unique in London,” Jagan continues. “Having delivered top-of-the-class shops, restaurants, cafés and more in an unrivalled setting in and around the Power Station, we are proud to be celebrating a strong first year. However, we are also acutely aware that future success is not guaranteed — we must adapt and grow to ensure the long-term success of the estate. We know there are areas that can be developed further, so we are keeping a close finger on the pulse to stay innovative to ensure Battersea Power Station retains its market-leading position.”

London’s exciting new shopping and leisure destination (Photo: Charlie Round-Turner)

Proof of the pudding

Words are all well and good, but few things underscore success quite the way physical accolades can. In this aspect, the rejuvenated Battersea Power Station has already won a slew of awards in its first year, including Best Mixed-Use Scheme and several citations for Best Heritage/Culture Project.

“It is a shining example of what the Malaysian people can achieve around the globe, delivering ambitious projects in circumstances where many other developers have failed. We are proud to have won a number of industry accolades that recognise the incredible work put in by thousands of people from both Malaysia and the UK to deliver this impressive project,” says Jagan.

“A particular highlight for me was the project’s win in the International Category at the Malaysia Developer Awards. To have Battersea Power Station feted at home is a source of great pride to the shareholder consortium, so we hope that all Malaysians take the time to visit when they come to London next. We have also seen off fierce competition from other globally recognised developers at UK property awards, including the RESI Awards, Property Awards and The PROPS Awards, winning the likes of Developer of the Year, Development of the Year and Best Conversion. This further demonstrates the innovation and success of our shareholders, while having significant and positive impact on the UK property market.”

Also adding to the delivery of a world-class project is the great pay-off a successful development can have on a city. Statistics have shown how thousands of jobs were created from Battersea Power Station’s opening alone.

“Battersea is an iconic asset that will generate economic activity and multiply value for not just the local community but also our shareholders in the long term,” Azmir points out.

“We have been committed from day one to make Battersea Power Station a neighbourhood for all and to be a force for positive change in the local community,” Jagan adds. “Job creation is a crucial part of this, creating opportunities for local residents and providing a significant boost to the local economy. Since construction started in 2013, we have created 5,500 jobs, and once the master plan is complete, this number will grow to 20,000. We have prioritised locals in these roles, creating the Battersea Academy for Skills & Employment (BASE), which matches employers with jobseekers from the area. More than 1,000 jobs have been filled by local residents since 2013, helping us achieve our target of at least 20% of long-term vacancies to be filled locally, and ensuring this new town centre is embedded in the community that was here before us.”

Battersea Power Station Underground station (Photo: Brendan Bell)

A project of such mammoth scale naturally also had a significant ripple effect through the supplies and materials needed for its delivery. Construction materials were sourced from across the UK, including three Eiffel Towers’ worth of steel from Scotland and the North East and North West of England, as well as 1.75 million bricks ordered from the original suppliers in the Midlands.

“Large-scale projects like Battersea Power Station help support jobs, communities and economies right across the country, as well as in the immediate vicinity of the estate,” Jagan continues. “Another crucial benefit to the local community was the opening of the Northern Line Extension in September 2021, which gave Battersea Power Station its own Zone 1 Underground station and easy connection from the area to the rest of Central London. Both the Underground station and the regeneration of Battersea Power Station were co-dependent to succeed. To be frank, our vision for Battersea Power Station could only be a success with a tube station, and Transport for London would only commit to building the Northern Line Extension upon our guarantee to restore the Power Station. This scenario prompted a lockstep approach between the two projects, which ultimately resulted in its mutual success.”

Life is beautiful

A privileged — and investment-savvy — handful of Malaysians are lucky enough to have a home away from home in this exciting enclave but Battersea Power Station’s developers are also keenly cognisant of the fact that more Londoners, as well as more tourists from across the UK and beyond, need to make their presence palpable in order to hit the projected sweet-spot figure of 25 million visitors in the coming years. Thankfully, its bag of treats include a dizzying array of retail, food and beverage options as well as a theatre, not one but two cinemas, and Lift 109, the Battersea Power Station chimney lift experience that makes a thrilling ascent 109m to the top of the north-west chimney offering unrivalled 360º views of the London skyline.

Those who do not own a home here as yet may get a taste of how sweet life can be by checking into the 164-room art’otel London Battersea Power Station, perched on the rooftop gardens of a Foster + Partners-designed space. Social media mavens have been giving endless airtime to the vibrant hotel, especially from the vantage point of its rooftop infinity pool that looks out across the Power Station and the rest of the Big Smoke, while the foodie brigade makes a beeline for Joia, a restaurant and bar operated by Michelin-starred Portuguese chef Henrique Sá Pessoa.

“The art’otel has become its own destination within Battersea Power Station and is a brilliant place to base yourself to enjoy everything the neighbourhood has to offer,” Jagan smiles. “Our Arcade Food Hall, which just opened in July, has quickly become the go-to dining place with 13 global cuisines, including a number of Asian concepts, on offer.”

Many new names have since been added to the roster, including Noci, Bao, Gordon Ramsay’s Bread Street Kitchen and Wagamama.

Arcade Food Hall (Photo: Battersea Power Station)

“We still have more to come,” he assures, “including the first tashas, a South African café concept that just opened in the UK, and the ever-popular Dishoom, further cementing Battersea Power Station as a food destination.”

Beyond food, unique retail concepts also add to the heady mix, including the first-ever dedicated beauty store by high-street powerhouse pharmacist Boots, which offers over 250 cosmetic, skincare and haircare brands.

Heart + soul

Beyond the historic architecture and pop culture significance — Pink Floyd immortalised the Power Station forever, featuring it on the cover of its seminal Animals album, and it has also served as the setting for several major films — the human touch remains a key element. Several initiatives were drawn up to bring the greater circle closer together, including the Battersea Power Station Community Choir, which Jagan admits is his “favourite initiative” within the overarching outreach programme line-up.

“The choir brings over 100 people to sing together every week, from the Power Station as well as the surrounding area, and performs on key occasions throughout the year,” he shares. “There is something very special about a group of people coming together to sing as one and the choir represents the cohesion we are proud to champion across the estate.”

For expatriate Malaysians, it is heartwarming to note that our music is regularly performed as well — “A joy to hear in London,” says Jagan — and the choir has also sung with the likes of Sting and Jamie Cullum.

“They don’t just belt out any old tune,” adds Choong. “During the opening ceremony last year, with the King and Queen of Malaysia in attendance, the choir sang Wau Bulan, accompanied by Team Setia’s very own Setia Harmony percussion, playing traditional Malaysian instruments.”

Besides music, nature is another important component of the development and Battersea Power Station is proud to have created an ecologically-rich environment in which over 95 bird species now call home. Birdwatchers and ornithological enthusiasts regularly flock here — pun intended — to admire a pair of peregrine falcons, a Schedule 1-designated species in the UK (which means they enjoy the highest level of protection), that nest on the grounds.

A bird’s eye view of the development (Photo: Battersea Power Station)

“They have a new ‘penthouse’ apartment in one of the wash towers,” Jagan laughs, “which we delivered as part of the restoration project. We like to think we have created an oasis in the centre of London, creating an environment for both wildlife and the public to cohabit while also providing welcome respite from the city’s hustle and bustle.”

Not content with ecological and community enrichment, technology was also introduced as a key pillar. Another successful initiative is demonstrated by the Power to Connect project where over 2,500 laptops and digital devices were donated to local families.

“We take our responsibilities seriously as a major developer and estate owner in London,” notes Jagan. “We want to build a legacy we will look back on with pride. Through Power to Connect’s donations of devices and laptops, we want to overcome digital poverty across Wandsworth [the London borough Battersea belongs to].

“We’ve also made huge carbon savings through the adaptive reuse of the Power Station. Restoring this landmark, rather than constructing a new building of similar size, has saved the equivalent of approximately 96,000 tonnes of carbon emissions. We have also reused as much of the original materials as possible, for example, strengthening the steel trusses in the Turbine Halls rather than replacing them with new ones.

“Walking through the residential concierges, you will find reception desks and coffee tables made from old steel — such is our dedication to reuse and repurpose as much as possible. Looking towards our current development pipeline and future phases, we are also considering how to make these as sustainable as possible. 50 Electric Boulevard, our new 200,000 sq ft office space due for completion later this year, is WELL Platinum-rated and BREEAM Outstanding, with HEPA air filtration systems throughout, as well as a 1,800 sq ft communal urban roof garden and a 4,000 sq ft amenity pavilion with trees and giant skylights.”

Adding to that are successful events that have since become annual fixtures, like the winter ice rink, children’s holiday activities and a free open-air cinema, all of which, Jagan affirms, reflect Battersea’s commitment to be an inclusive neighbourhood for all. “We aim to create a sense of belonging which differentiates us from other destinations.”

Just a few miles away from Battersea Power Station is Shakespeare’s historic Globe Theatre. Perhaps a quote from Coriolanus, one of the Bard’s most underrated plays, best sums up the development’s driving force and raison d’être: “What is the city but the people?” What indeed.