SP Setia inks RM1.07 billion syndicated financing facilities deal

PETALING JAYA: SP Setia Bhd has inked a RM1.07 billion syndicated financing facilities agreement with CIMB Investment Bank Bhd, Malayan Banking Bhd, AmInvestment Bank Bhd, Industrial and Commercial Bank of China (Malaysia) Bhd for a land swap development transaction under the government’s public private partnership programme.
SP Setia, which entered into the agreement through its associate company Setia Federal Hill Sdn Bhd (SFH) will undertake the development of a new integrated health and research institute that will be known as the National Institute of Health (1NIH).
It said the research institute would be developed on a 41-acre land in Setia Alam, Shah Alam, comprising office buildings, health management institutions, a medical research centre, facilities block, a kindergarten and staff quarters.
In return, the property developer said the government will provide SFH a 52-acre site on Federal Hill for the development of a mixed residential and commercial project with a gross development value of RM15 billion.
The group’s acting president and CEO Datuk Khor Chap Jen said in a statement yesterday, that the project is expected to be launched in 2017 and completed by October that year.
“The 1NIH is a particularly meaningful project approved by the government in the 7th Malaysian Plan. When fully operational, the facility will provide a conducive research environment for health and research practitioners in the medical field.”
“Once completed, it will house more than 5,000 personnel from the Ministry of Health. The opening of this new complex in 2017 aims to bring new vitality and increase footfall in Setia Alam,” Khor added.
As of Oct 31, the group has 27 ongoing projects, with an effective stake of 3,935.99 acres in undeveloped land bank remaining and RM69.07 billion in GDV.