This article first appeared in The Edge Financial Daily, on June 30, 2016.

KUALA LUMPUR: S P Setia Bhd is still positive on the long-term prospects of Battersea Power Station and remains committed to the development of the entire project, which is expected to be fully developed by 2025, despite the short-term uncertainty in the aftermath of Brexit.

The property group said in a statement on Bursa Malaysia on Tuesday that to date, the group had sold approximately 85% of the 1,661 units launched for Battersea in three phases.

“This comprises phase 1 at 99%, phase 2 at 90% and phase 3a at approximately 60%,” it said.

As phase 1 is scheduled to be completed and delivered on a staggered basis starting from the fourth quarter of 2016 (4Q16) to 2Q17, the group expects to recognise part of the profit from phase 1 in financial year 2016.

“While the profit from phase 1 will be recognised, it will also be reinvested in the development of phase 2 and phase 3, which are expected to be completed in 2020.

“As such, the fluctuation in [the] pound sterling would be confined to accounting effect, as profit will remain invested in the project for the longer term,” it said.

Last Thursday, the UK held a referendum on whether to remain in the European Union and 52% of voters chose to leave, unleashing volatility in financial markets worldwide.

S P Setia closed four sen or 1.33% higher at RM3.05 yesterday, with a market capitalisation of RM7.96 billion. The stock has slipped 12 sen or 3.79% since last Thursday, when it closed at RM3.17.