UOA to focus on mid-residential mart

By IZZAT RATNA / Pic By ISMAIL CHE RUS

PROPERTY developer UOA Development Bhd is expected to remain focus on the mid residential market on the back of about RM1.9 billion worth of new launches planned for this year.

Senior manager for corporate affairs Yap Kang Beng (picture) said in terms of new launches, UOA has unveiled several ongoing residential projects since the beginning of 2018, such as the South Link and the Park Residences Phase 2 located in Bangsar South, Kuala Lumpur (KL).

“A residential development in Bandar Tun Razak with additional elements complementing it is also in the pipeline.

But at the moment, it is still in the drawing board. We will disclose more information in due course,” he told reporters after UOA’s AGM in KL yesterday.

“The other project that we are doing, but is not for sale, is called the South Point Hotel in Bangsar South,” he said.

According to Yap, UOA will also continue working on projects launched in 2017, given the large scale of these projects.

Among them are the Sentul Point and the United Point in Kepong.

“Comparatively, we are actually not launching more than before. In fact, we are probably doing as much as what we did for the past years.

“So, we are not actually being more aggressive in terms of launches for 2018,” he said.

UOA managed to secure about RM1.3 billion in sales for the financial year 2017 (FY17), and is anticipating a flattish sales projection for FY18.

“However, our company usually does not provide any sales guidance to the market at all. But looking at the present market condition, the sales for FY18 would probably be relatively flat,” Yap said.

The real estate developer’s unbilled sales currently stand at about RM1.3 billion as at the end of FY17, which are expected to sustain the company over the next three to five years.

Yap said looking ahead, UOA will be on the lookout for strategic pieces of land for acquisition.

“We will acquire any piece of land that is deemed suitable,” he added.

UOA’s present landbank size stands at about 100 acres (40.5ha) with a gross development value (GDV) of RM11 billion, a combination of ongoing and future developments that is predominantly located in the central region.

Commenting on the market’s outlook, Yap said the property market’s sentiment remains soft. However, demand from the mid-end residential market remains vibrant, which reinforces the company’s move to give further emphasis on this particular segment.

For FY17, a total of four development projects with an estimated GDV of RM2.03 billion collectively were completed.

They are South View Serviced Apartments, Suria@ North Kiara, Sentul Village and Southbank Residence.

Ongoing developments include the Danau Kota Suite Apartment located in the matured township of Setapak, KL (RM203 million GDV), Sentul Point (RM3 billion), as well as the Sphrea in Bangsar South, KL.