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
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.