SP Setia seals deal for 21.2ha Bangsar land

PETALING JAYA: Conditions for a privatisation agreement between the government and SP Setia Bhd which will see the latter secure a 21.2ha land in Jalan Bangsar has been fulfilled.
In a filing to Bursa Malaysia yesterday, SP Setia said its subsidiary Setia Federal Hill Sdn Bhd (formerly known as Sentosa Jitra Sdn Bhd) (SFHSB) has satisfied all conditions precedent set out in the privatisation agreement and that the effective date of the agreement is on June 17, 2014.
Under the agreement SFHSB will build a new integrated health and research institute, 1National Institute of Health (1NIH complex) in Setia Alam, Selangor, in exchange for 21.2ha of land in Bangsar.The total contract value for the 1NIH project is RM845 million.
In addition to carrying out the 1NIH project, SP Setia will pay the government RM217.1 million as minimum guaranteed profit (MGP) for the planned mixed development at the Bangsar land.
"In the event 20% of the actual profit before tax for the relevant phase of the development is higher than the MGP, SFHSB shall pay the government the sum representing the difference thereof," the company said in its filing in 2012.
SP Setia said it plans to develop luxury residential apartments and integrated commercial products such as boutique and strata offices, which will appeal to buyers seeking upmarket properties within the affluent Bangsar and Federal Hill areas.