New SP Setia development in Ulu Langat

Some 1,010 acres in Ulu Langat, Selangor have been proposed for purchase by SP Setia Bhd in order to build homes priced from RM300, 000. The company announced that its wholly-owned subsidiary, Bukit Indah (Selangor) Sdn Bhd, had entered into a sale and purchase agreement with Ban Guan Hin Realty Sdn Bhd for the proposed purchase of the freehold parcel for RM330.1 million.
 

The land, with generally undulating terrain, is situated midway between Semenyih, Bangi old town and Beranang. SP Setia said the proposed acquisition was expected to be completed during the first half of its financial year ending October 31, 2012.
 

According to its President and CEO Tan Sri Liew Kee Sin, the plan for the land is for a mixed development. He said that the buyers targeted would be those from Kajang and Semenyih.
 

Analysts are generally positive on the proposed land deal given the low land cost and its sizeable land area which is hard to come by these days. An analyst from a local brokerage believes demand for the project would be strong given the captive market and the product mix.
 

“The project can expect to see a big captive market at its disposal that includes residents in Kajang, Cheras and the larger Klang Valley. With an estimated GDV of RM3.5 billion, SP Setia’s plan to replicate its highly-successful Setia Alam Township is a viable proposition.
 

“The affordable houses that include typical link houses in the region of RM300,000 to RM350,000 should have a strong following, given the severe shortage of such houses in the Klang Valley,” the analyst pointed out. [Rufaidah]