Background Image
Table of Contents Table of Contents
Previous Page  208 / 234 Next Page
Information
Show Menu
Previous Page 208 / 234 Next Page
Page Background

206 | S P SETIA BERHAD GROUP | Annual Report 2014

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 October 2014

V. FINANCIAL STATEMENTS

49. SIGNIFICANT EVENTS PENDING COMPLETION

The following are the status of corporate proposals that have been announced by the Group and the Company but not completed as at

31 October 2014:

(i) Bandar Setia Alam Sdn Bhd (“Bandar Setia Alam”), a wholly owned subsidiary of S P Setia Berhad, disposed off approximately 30.5

acres of freehold land (“Original Land”) located within Precinct 1 of the Setia Alam township (“Said Land”) to Greenhill Resources

Sdn Bhd (“Greenhill”) for a total consideration of RM119,572,200. Greenhill is a joint venture between Bandar Setia Alam and

Lend Lease Asian Retail Investment Fund 2 Limited (“ARIF”), a wholesale real estate development fund managed by Lend Lease

Investment Management Pte Ltd, for the development of a retail mall on the Said Land (“Retail Mall”), as announced on 2 July

2008.

Subsequently on 15 July 2009, Bandar Setia Alam had entered into several agreements to reflect certain changes to the earlier

Proposals announced on 2 July 2008. The agreements include the entry into two separate Sale and Purchase Agreements between

Bandar Setia Alam, Greenhill and GR Investments Ltd (“GRI”) for the disposal by Bandar Setia Alam to Greenhill of approximately

14.31 acres (“Stage 1 Land”) of the Original Land on which the Retail Mall was to be constructed, and the remaining 16.19 acres

(“Stage 2 Land”), for approximately RM56.1 million and RM63.5 million respectively.

Pursuant to a Supplemental Agreement entered into between the parties on 27 January 2014, the disposal of the Stage 1 Land and

Stage 2 Land is expected to be completed by financial year ending 31 October 2015;

(ii) On 26 October 2009, a subsidiary of S P Setia Berhad, Setia Lai Thieu Limited (“Setia LT”), had entered into an In-Principle

Agreement with Investment and Industrial Development Corporation (Becamex IDC Corp) (“Becamex”) for the assignment of the

implementation and development of an independent mixed-use real estate project on a piece of land measuring approximately

108,400 square metres or 26.79 acres located in Lai Thieu Town, Thuan An District, Binh Duong Province, Vietnam (“Land”) from

Becamex to a company to be established by Setia LT in Vietnam for a total consideration of USD16,260,000.

As announced on 11 March 2010, the People’s Committee of Binh Duong Province has on 10 March 2010 issued the Investment

Certificate for the establishment of Setia Lai Thieu One Member Company Limited (“NewCo”) to undertake the development of

Eco-Xuan Lai Thieu on the Land for a term of 50 years from the date of issuance of the Investment Certificate.

On approval of the masterplan in the scale of 1/500 for EcoXuan Lai Thieu, the area of the Land was increased from 108,400 square

metres to 109,685 square metres (27.10 acres) and by the increase in land area, the total consideration payable to Becamex was

adjusted to USD16,452,750 based on the rate of USD150 per square metre.

The balance of the consideration is payable upon the issuance of the land use right certificate in the name of Setia LT; and

(iii) On 6 February 2013, Setia Eco Templer Sdn Bhd (formerly known as Rockbay Streams Sdn Bhd), a wholly owned subsidiary of

S P Setia Berhad has entered into an agreement (“Development Agreement”) with Cash Band (M) Berhad, for the proposed

development of a mixed residential and commercial project on various parcels of leasehold land measuring approximately 194.65

acres in the District of Gombak.

The Development Agreement is pending the fulfillment of the conditions precedent therein within a period of twelve (12) months

from the date of the Development Agreement, with an automatic extension of a period of twelve (12) months thereafter and/or such

other extended period to be mutually agreed in writing by the parties for the fulfillment of the conditions precedent.