S P Setia Bhd has completed the sale of its 388.38 hectare land parcel in Tebrau, Johor to Senibong Island Sdn Bhd for RM564 million.

The transaction was conducted through its subsidiary, Pelangi Sdn Bhd.

S P Setia had tried to sell the land twice before to Scientex Bhd, the deals however were blocked by the Economic Planning Unit.

S P Setia said by unlocking the value of this asset, the company said the deal enhanced its financial standing, contributing to an expected profit after tax of RM332 million.

President and chief executive officer Datuk Choong Kai Wai said the transaction complemented the company's de-gearing efforts, which are happening according to plan and shall contribute to its future growth.

"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 in a statement.

In tandem with this, Setia continued to direct its efforts into other revenue streams via landbank management, making its mark in industrial development and continuing with regional expansion in Vietnam and Australia to broaden its income base.

Setia has also commenced pre-initial public offering preparatory work to explore the establishment of a Real Estate Investment Trust (REIT).

"Our strategy to realise the values of our identified land assets has brought us one step closer to an even stronger financial state and supports our efforts to diversify our income base.

"We remain committed to our ethos of excellence and innovation, driving growth while delivering superior value to our stakeholders," added Choong.