SP Setia Bhd, Malaysia’s most valuable property developer, is planning to increase its commercial property portfolio from three per cent now to 20-30% in two to three years, with plans to build its first retail mall for RM750 million.

Almost all of the group’s income now comes from residential property. “We want to move into commercial as the properties will give us higher value,” said group managing director Tan Sri Liew Kee Sin.

The four-level mall will be built within Setia City, the commercial hub of its flagship township Setia Alam in Shah Alam. Offering a gross floor area of 1.23 million sq ft, it is expected to be opened by 2011.

SP Setia subsidiary Bandar Setia Alam Sdn Bhd (BSA) will build it with Lend Lease Asian Retail Investment Fund 2 Ltd (ARIF) via an equally owned joint venture firm, Greenhill Resources Sdn Bhd. ARIF is a real estate fund advised by Lend Lease Investment Management Pte Ltd, which is part of Lend Lease Corp Ltd, an Australian property group.