SP SETIA Bhd’s move to sell off some of its assets in the Battersea project in London to Permodalan Nasional Bhd (PNB) and the Employees Provident Fund (EPF) has taken some industry players by surprise. But the move is largely seen as positive for the property giant.
A property analyst tells FocusM that although there are some concerns that the developer is disposing its assets too early, in the long run, it could be a win-win situation for buyers and sellers.
“It is quite normal for a developer to monetise assets when the time is right. With the uncertainty surrounding Brexit [UK’s withdrawal from the European Union] still hanging over the London market, it could be the right time for SP Setia to dispose some its prime assets there.
“This would raise funds for them to utilise in other projects. On the other hand, the buyers [PNB and EPF] have more financial muscle and staying power to weather the storm and profit when the London property market moves upward again.
“London properties are still favoured by foreign investors despite experiencing a slowdown last year. Prices have escalated 70% in the last decade,” says the analyst.
