SP Setia

Sources say PNM is exploring ways to unlock the value of its property assets currently (Sept 2013) housed in I&P Group Bhd.

The fund is looking at two options. One is a direct listing of I&P, which is the result of a merger between I&P, PGarden and Pelangi Bhd. The other is to inject I&P’s assets, which could be worth rm10 billion, into 64% owned SP Setia.

It is understood that PNB is more inclined to do the latter because SP Setia is a well established developer and a consolidation between the two companies will enhance the value of I&P’s property projects.

At the same time, SP Setia will become a mega property developer listed on Bursa Malaysia whose projects have a GDV of about rm40 billion.

Sources say PNB has also announced the development of 118 storey tower Warisan Merdeka, this project is not expected to be pumped into SP Setia because its GDV of rm5 billion might put too much on the group’s plate.