SP Setia Bhd will begin new projects within Setia Fontaines, an integrated development north of Seberang Perai, Penang, which is benefiting from growth from a nearby 850-acre industrial park.

Setia Fontaines is a 1,691-acre township with a gross development value (GDV) of RM12 billion. It will include commercial development including office space, a trade centre, warehousing, a technological hub, shopping centres, F&B, a convention centre, a hotel, and a leisure area.

Wong Wei Sum, an analyst with Maybank Investment Bank (Maybank IB), said that the company recently visited Setia Fontaines and was informed that the project accounted for 10 per cent of SP Setia’s remaining GDV.

As end-Dec 2021, SP Setia has a remaining landbank of 7,237 acres worth RM122 billion in GDV, spread over Malaysia, London, Singapore, Vietnam, and Australia.

“Setia Fontaines offers a similar eco theme as Setia Eco Park but is more affordably priced like Setia Alam. The catalyst to the project include the industrial park nearby, which could offer employment opportunities and attract new population to the area over the longer term,” she said in the firm’s research report.

She stated in a note that the project, which primarily offers standard landed properties, is anticipated to still have at least 25 to 30 years of development left.

According to Wong, the project has produced stable and increasing sales for SP Setia since its launch in 2018.

The project generated RM157 million in sales (+89 per cent year on year), or 4 per cent of SP Setia’s property sales.

She disclosed that Setia Fontaines’ products are more premium (RM500,000 to RM600,000 per unit), in comparison to nearby competitors like Scientex Bhd’s Tasek Gelugor and Sungai Dua developments, which are priced at RM250,000 to RM280,000 per unit.

“We suspect the premium pricing is due to the Setia brand name and a well-designed development plan. The project’s sizeable land area of about 1,000 acres also signifies SP Setia’s long-term commitment and this somehow has provided confidence to the potential buyers and increased the perceived value of their purchase, we think,” she said.

Wong said that SP Setia will launch the commercial plot with a GDV of RM130 million and 450 units of landed residential properties with a GDV of RM400 million in the third quarter of this year (Q3 2023), after receiving a positive response to the launch of Amansara North in the fourth quarter of 2022.

Amansara North has a GDV of RM296 million and 499 landed residential units. Some 80 per cent of the units have been sold, with an average selling price of RM580,000.

Wong also disclosed SP Setia’s continued focus on reducing its debt level through the sale of non-core landbank assets and strategic joint venture partnerships for some of its projects to reduce the up-front project development expenses.

“Apart from that, cash flow repatriation from its overseas projects will help to lower its debt level,” she said.

Source: NST Online

Artist impression of a GBS building near Bayan Lepas Technoplex

Muhibbah Engineering (M) Bhd has bagged a RM172.6 million construction contract from Penang Development Corp for a development in the Technoplex industrial area located in Bayan Lepas, Penang.

The proposed development involved a nine-storey office building and factory, a six-storey parking building with a TNB sub-station and mechanical requirements, and one unit of normal waste depot, office waste depot and recycling room.

The contract is scheduled to commence on Feb 13 and is expected to be completed within 14 months from the commencement date.

Source: TheEdgeMarkets.com

About Eco Industrial Hub

A freehold light industrial development by Nexon Property Sdn. Bhd. near Batu Kawan. Strategically located right next to NuConcept New Furniture factory, conveniently connected to Batu Kawan Industrial Park via Jalan Perindustrian Valdor. With only 3 minute’s drive to BKIP, this is one of the very few light industrial projects located within close proximity to the home of many MNCs and Penang 2nd Bridge.

Find out more about Eco Industrial Hub

Efforts will be taken to resolve the traffic woes in Seberang Perai, especially in the Batu Kawan parliamentary constituency.

Chief Minister Chow Kon Yeow said this when he attended the Perai Chinese New Year Open House near Chai Leng Park Market Saturday evening.

“The problem that I often hear is the traffic congestion in Seberang Perai, which causes inconvenience to the residents, especially those living in the Batu Kawan parliamentary constituency.

“I have been appointed as the Penang Development Action Council (MTPNG) chairman, a council which will coordinate the state government, local government and federal government in the implementation of projects.

“Among the projects that have been proposed (concerning the traffic congestion) was the elevated highway project from Juru to Sungai Dua,” Chow said.

Commenting further, Chow said the elevated highway would help to separate the local traffic from the traffic heading towards other states.

“This is an important project, just like the one in Ipoh which separates the local traffic from the traffic heading towards north and south.

“It helps to overcome the traffic woes there.

“I will ensure that the project (Juru-Sungai Dua elevated highway) gets the attention of the Federal government so that it becomes a priority project to rectify the traffic woes in the major part of Seberang Perai.

“If the project is not implemented, it would affect the quality of life of the people as they would be ‘trapped’ in the traffic jams.

“It would also impact the development of the social economy as well as the industry in Penang,” Chow added.

He added that the discussion about the Juru-Sungai Dua elevated highway project has already begun and that he would pursue the matter until it gets approval.

Source: Buletin Mutiara

The Department of Environment (DoE) is expected to give its decision on the new Environmental Impact Assessment (EIA) report for the Penang South Islands (PSI) project after the technical meeting next month.

Chief Minister Chow Kon Yeow said the DoE was expected to make its decision after the meeting.

“The meeting will enable DoE to examine all technical reviews and observe all compliances from each agency in the EIA Evaluation Technical Committee.”

It was reported by an English daily that the EIA Evaluation Technical Committee is made up of agencies such as PLANMalaysia, Fisheries Department, Health Department, Irrigation and Drainage Department, Minerals and Geosciences Department, Malaysian Marine Department, Public Works Department, Town and Country Planning Department, Penang Port Commission, individuals appointed with specific expertise, as well as non-governmental organisations.

“This is the final stage before the DoE makes its decision. We had three meetings to discuss the technical reviews in the past. The latest was recent,” Chow replied to a journalist after presenting financial aid to Tamil kindergarten and primary schools as well as Punjabi schools in Penang on Thursday. The aid presentation ceremony was held in Komtar. A total of RM2.39 million was allocated for 28 Tamil schools, 19 Tamil kindergartens, three Punjabi schools, and the special fund of the Tamil school special committee.

Commenting on the PSI project, Chow reiterated that the state would not proceed with its implementation without the EIA approval.

“This has always been our stand and we are sticking to it. The process of obtaining the EIA approval has also been taking a long time,” he said.

The EIA report for the PSI was approved in 2019, before the approval was reversed by the Appeal Board on Sept 8, 2021.

It was reported by an English daily that the Appeal Board’s basis for reversing the approval was because of the contradictions with Section 34A(4) of the Environmental Quality Act 1974, related to development zoning that had not been approved by the Penang state authority at that time. The state government has submitted an updated and more comprehensive EIA report for approval in March last year.

The PSI project off the southern coast of Penang island involves the reclamation and development of three islands covering 1,820ha – namely Island A (930ha), Island B (566ha) and Island C (324ha).

It is designed to fund the Penang Transport Master Plan, which includes the Pan Island Link and Bayan Lepas Light Rail Transit. The PSI project is also seen as a Penang Economic Transformation project, with the aim of creating a robust international service and manufacturing hub.

Chow said the process of obtaining the EIA approval for the PSI was very comprehensive.

“I am not sure if there is any project or state that must go through such a process.

“This (process) can be a ‘model’ for DoE to look at… how the EIA was prepared, and with all the input from the technical agencies.

“We have complied with the requirements of the technical agencies. As long as there are requirements imposed, we comply. That is our principle.

“And I believe a decision can be made by the DoE after the meeting in March,” he said.

Chow said conditional approval (if granted) is normal.

“Usually, approval will come with conditions to comply… before, during and after the implementation of a project,” he added.

Source: Buletin Mutiara