SP Setia has a 40% stake in the Battersea property development

KUALA LUMPUR: SP Setia Bhd is still positive on the long term prospects of Britain’s Battersea Power Station and remains committed to develop the entire project despite the short term uncertainty due to Britain’s exit from the European Union (Brexit).

The company, which has a 40% stake in the Battersea property development, said on Wednesday the overall project is expected to be fully completed by 2025. The other consortium partners for this 39-acre project are the Employees Provident Fund (20%) and the Sime Darby Group (40%).
SP Setia said that to-date, it has sold about 85% of the 1,661 units launched for Battersea in three phases. This comprises Phase 1 at 99%, Phase 2 at 90% and Phase 3a at approximately 60%.

SP Setia said Phase 1 is scheduled to be completed and delivered on a staggered basis starting from 4Q2016 to 2Q2017.

“Therefore, we expect to recognise part of the profit from Phase 1 in this financial year 2016.

“While the profit from Phase 1 will be recognised, it will also be reinvested in the development of Phase 2 and Phase 3, which are expected to be completed in 2020.

“As such, the fluctuation in pound sterling would be confined to accounting effect as profit will remain invested in the project for the longer term,” it said.