RHB Research: S P Setia to raise funds for Battersea mainly from bank borrowings

RHB Research Institute said the joint bid by S P Setia and Sime Darby has been identified as the preferred

bidder for the Battersea Power station.

It said on Friday the site will be acquired at a cost of £400mil in addition to £200m for the construction of an underground

tube station.

“It was reported that the gross development value (GDV) for the project is £8bil. If this is true, the implied psf selling

prices look slightly expensive, but will be able to well cover the cost, yielding a decent margin. Also, given the scale of

the project, we expect S P Setia to raise funds, largely from bank borrowings,” it said.

RHB Research said there was no change in forecasts, pending details and kept the fair value at RM4.03. It maintained a Market

Perform on S P Setia.

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