In a statement, the property developer noted that by unlocking the value of this asset located in Tebrau, the deal enhances the company’s financial standing, contributing to an expected profit after tax of RM332 million.

President and CEO Choong Kai Wai said the transaction complements the company’s de-gearing efforts.

“By efficiently managing our capital structure, channelling resources into fast-developing projects, rationalising our cost structure, and directly boosting our bottom line, Setia is better positioned for expansion and long-term sustainability,” he said.

Choong also said that the company will continue to direct its efforts into other revenue streams via landbank management and making its mark in industrial development.

Additionally, he said the company will continue with regional expansion in Vietnam and Australia to broaden its income base, in addition to its strong execution of township projects in line with market demand.

“Setia has also commenced pre-initial public offering preparatory work to explore the establishment of a real estate investment trust (REIT), showcasing a diverse asset portfolio.

“This may include retail complexes, office buildings, schools, and a convention centre, establishing a new pathway for investor value and company growth,” he said.

Choong also said that the strategy to realise the values of its identified land assets had brought them one step closer to an even stronger financial state and supported the company’s efforts to diversify its income base.