KUALA LUMPUR, Nov 23 — Property developer SP Setia Bhd’s net profit for the third quarter ended September 30, 2023 (3Q FY2023) declined to RM51.82 million from RM70.19 million previously.

Revenue jumped 25 per cent to RM1.08 billion from RM860.94 million in the same period a year ago due to the recovery in the Malaysian property market.

"During 3Q FY2023, the group launched a range of projects, including landed properties worth RM498.7 million in the central and southern regions and two-storey commercial retail and office units at Setia Fontaines City Centre Business Hub in Penang,” a statement said today.

"The take-up rate of these new developments was encouraging, with a 97 per cent occupancy rate in Bandar Kinrara’s new landed residentials and about 60 per cent of units sold in townships such as Setia Bayuemas and Setia Fontaines,” it said.

In a separate filing, SP Setia Bhd said its wholly owned unit Bandar Setia Alam Sdn Bhd has inked a deal with KSL Holdings Bhd’s subsidiary, KSL Bestari Sdn Bhd, to dispose off 7.28 hectares (18 acres) in Bukit Raja, Petaling for RM228.80 million.

SP Setia said the proposed disposal is targeted to expedite Setia City as a fully integrated commercial hub and enhance the value of the remaining undeveloped land within the township.

"This will in turn spur job creation and increase the township’s commercial vibrancy which will directly improve the group’s sales prospects in Setia Alam and Setia Eco Park, reinforcing its commitment to sustainable growth and development,” the developer said.

The proposed disposal is in line with the group’s plan to improve capital efficiency by monetising landbanks, specifically those not planned for immediate development, which will contribute positively to earnings, the developer said.

Proceeds are expected to be used to fund new projects identified for immediate launches, to par down debts or other uses.

Meanwhile, KSL Holdings Bhd said the proposed acquisition will enlarge its land bank to enhance future revenue and earnings.

"This project is expected to involve about 2,600 residential units. Expected to commence in 2025, it is envisaged to spread between 10 and 15 years, with total gross development value of about RM2.2 billion,” it added.

KSL group’s land bank will be about 1,052.18 hectares (2,600 acres) scattered in Johor and Kuala Lumpur, Klang and Selangor post-acquisition, with about 50 per cent at various stages of approval and about 25 per cent under various stages of development. — Bernama