By IZZAT RATNA 

SP SETIA Bhd, through its wholly owned subsidiary Retro Highland Sdn Bhd, has entered into a privatisation agreement with the Kuala Lumpur City Hall (DBKL) for an RM11.03 billion gross development value mix-development project.

Retro Highland would be in charge for the planning, design, construction, completion and commissioning of the 55.2 acres (22.34ha) “Quality Sustainable People Housing” development located in Cheras, Kuala Lumpur (KL).

Under the agreement, the project encompasses the construction of approximately 3,971 residential units, 112 units of shops and stalls, a market and other public facilities, and is expected to be developed over a period of 11 years.

In an exchange filing, SP Setia stated that the recently clinched award is expected to continue strengthening the group’s presence in the central region, given that the exchange land is located in the heart of KL.

“Despite having recently acquired large tracts of landbank via the acquisition of I&P Group Sdn Bhd, it is very much an opportunity for SP Setia to increase and replenish its current landbank in key areas of KL.

On the company’s outlook, SP Setia said the proposed development will be subjected to certain risks inherent to property development due to the long-term development period of 11 years.