KUALA LUMPUR: Despite external uncertainties, property developer SP Setia Bhd remains confident of meeting its FY25 sales target of RM4.8 billion.
Maybank Investment Bank Bhd (Maybank IB) said SP Setia’s industrial parks are expected to drive the next leg of earnings alongside stable township contributions.
Abroad, SP Setia’s Battersea Power Station projects in London are also seeing better take-up and occupancy.
Maybank IB noted that SP Setia secured planning approval for the 399-acre Setia Alaman Industrial Park (SAIP), which had a GDV of RM4 billion in Klang in Q4’24, enabling the recognition of RM655 million in land sales from FY25.
To raise the project’s profile, SP Setia intends to form a JV with a foreign partner to develop a portion of the land (42 acres), with the deal expected by the second half of 2025.
“We are positive on the project due to its strategic location in Klang. More importantly, the project – located just a 10-minute drive from the Setia City development – is expected to boost activity in the area, potentially leading to improved margins and higher land value in the future.
“SAIP’s proximity to Setia City – with RM5.2 billion in remaining GDV – is expected to spur activity in the area, supporting an integrated ecosystem of industrial operations, residential developments, and lifestyle amenities. These factors should enhance future margins and land value in the vicinity,” Maybank IB said in a note.
Moving on, Maybank IB is also positive on the 414 acres Setia Fontaines Industrial Park (SFIP), which has a GDV of RM3 billion GDV, in Bertam.
With Penang Development Corporation (PDC), the state-owned development arm, as the 50:50 JV partner, Maybank IB expects the approval process to be expedited and should further enhance investor confidence.
To recap, SP Setia signed into a memorandum of collaboration with PDC in March 2025 to jointly develop Setia Fontaines into a green mixed-use and industrial development. SP Setia will hold a 50% stake in the JV.
Phase 1 of the project, which covers about 84 acres, will focus on land sales to lower upfront costs.
“While there are no details on the launch timeline yet, we understand that rezoning approvals for SFIP are likely to be obtained by July 2025,” Maybank IB said.
Separately, SP Setia is discussing with two potential JV partners – one local and one foreign – for its 307-acre Tanjung Kupang Industrial Park (TKIP) in Iskandar Malaysia with a GDV of RM8 billion.
Internationally, SP Setia continues to expand with strong momentum.
In Australia, the company’s Atlas Melbourne, which has a GDV of RM2.4 billion, has locked in 50% sales, with 20 units sold monthly.
“While there are no details on the launch timeline for its Carlton project (RM1.8 billion GDV) in Melbourne (across from Melbourne University), we understand that two towers have been earmarked for build-to-sell, while the other tower will be build-to-rent (for student accommodation purposes),” Maybank IB said.
In London, Maybank IB noted that SP Setia does not anticipate significant losses from its 40%-owned Battersea Power Station project.
The development has recorded strong progress, with 99% of its retail space leased, a 71% take-up rate for the KOA apartments (up from 61% in Q3’24), and office occupancy in Phase 3B rising to 46%, compared to just over 20% in Q2’24.
Phase 3C (senior living) is under negotiation with a potential buyer, while discussions for Phase 4, which could be a JV with an international developer, are ongoing.
