KUALA LUMPUR: SP Setia recently expanded its Australian development by acquiring a 14,790 sq ft freehold land site in New South Wales, Sydney. Located at 20 Atchison Street, St Leonards, the new venture is SP Setia’s debut into the state of Sydney, presenting an optimal entry cost point of AUD73.3mil (RM220mil) into the local property market.
The move follows SP Setia’s commitment to strengthen its regional presence and increase its growth. Its first Australian development, Fulton Lane, was launched in 2011. SP Setia has since expanded its development in Australia with multiple completed projects, totalling over AUD2.2bil (RM6.5bil) in gross development value (GDV).
Currently, the newly acquired land is to be developed into a residential project with commercial and retail use. The project has an estimated GDV of AUD236mil (RM708mil).
“The acquisition of 20 Atchison Street is an exciting and strategic move for SP Setia in Australia,” SP Setia president and chief executive officer Datuk Choong Kai Wai said.
“We are proud of our legacy of excellence in the Australian property market, as demonstrated by the completion of the iconic Melbourne projects: Fulton Lane, Parque, Uno, and Sapphire by the Gardens. These projects have not only set the highest standards but have also come to define the SP Setia brand in Australia, known and proven for its unwavering commitment to timely completion and quality,” he added.
Spanning 1,374 sqm (14,790 sqft), 20 Atchison Street is 6km from the Sydney central business district, with access to the St Leonards Train Station, the St Leonards Medical Precinct, schools and the Chatswood Chase Shopping Centre.
According to SP Setia’s press release, the Sydney apartment market has had a projected shortage of new supply levels for several years and an expected influx of 650,000 new migrants settling in Sydney and Melbourne, fuelling the demand.
The launch and commencement of 20 Atchison Street, St Leonards land development are scheduled for Q3 2024.
“This exciting land acquisition underscores SP Setia's commitment to delivering outstanding developments that cater to the needs and aspirations of discerning homebuyers and investors in Australia. All our investments in Australia have generated good returns with strong ROEs. We expect this to continue with the Sydney acquisition as SP Setia pursues its expansion strategy in Australia,” Choong said.