UEM Sunrise eyes 15 new projects worth RM2b GDV next year

by SHAZNI ONG/ pic by TMR

UEM Sunrise Bhd is ramping up its business with 15 new projects with a RM2.02 billion gross development value (GDV) target in 2020, exceeding the RM1.2 billion target set this year.

MD and CEO Anwar Syahrin Abdul Ajib said the bulk of the proposed launches — comprising landed and high-rise developments as well as commercial units — will be in the Klang Valley and Johor.

“Most of these development projects are continuations of the previous phases. While the current real estate market is viewed as a challenging one, we remain focused on what is currently in place,” he told reporters at the company’s second-quarter (2Q) financial performance media briefing in Kuala Lumpur on Wednesday.

Among the launches slated for next year are new phases of Serene Heights in Bangi and Equine Land in Seri Kembangan (in 3Q20). In Johor, the new launches are Aspira ParkHomes (in 3Q20), Aspira LakeHomes (in 4Q20) and Estuari Gardens (in 2Q20) and Senadi Hills (1Q20).

Anwar Syahrin highlighted the first half of the year (1H19) tends to be viewed as a quiet period.

He noted a large chunk of sales transacted so far were for units priced within the RM500,000 to RM1 million range.

As of June 30, 2019, UEM Sunrise’s unbilled sales stood at RM2.6 billion.

He is optimistic that business sentiment would improve in 2H20 and the company projects sales of RM1.57 billion in GDV.

“Current conditions are tough with oversupply in the market. There are too many developers in town and everyone is pressured to deliver, but we are focusing on our own areas. We are still looking to launch new projects next year but only what the market demands and we have the products that people want,” he said.

Its upcoming mixed development project located in Kepong Metropolitan is expected to be launched in 4Q19.

The township development, dubbed as Kiara Bay, will comprise two 41storey high towers of 870 serviced apartments units and retail with an estimated GDV of RM656 million on a 4.41-acre (1.938 ha) land.

“I think those who missed the Publika (project) the first time around, will probably be interested in coming in this time,” he said.

UEM Sunrise is confident that it’s on track to achieve this year’s GDV target of RM1.2 billion.

To date, UEM Sunrise has launched properties with a total GDV of RM249.3 million comprising mid-market double-storey terrace homes.

“We have done sales of RM532 million of new launches and inventory monetisation. Fifty-two percent of the sales were contributed by the central region mainly from Symphony Hills, Residensi Astrea development in Mont Kiara and Serene Heights, while 44% were from the Southern region largely from Aspira ParkHomes, [email protected] Puteri Harbour and Denai Nusantara,” he said.

Anwar Syahrin disclosed that UEM Sunrise is planning to develop a RM300 million GDV project in South Africa with a local partner.

On the Home Ownership Campaign (HOC) 2019, Anwar said UEM Sunrise managed to sell more than RM200 million worth of property units during the campaign and reduce its inventory to RM629 million as at June 30,2019.

“The HOC has been positive for properties like Serene Heights Bangi, Serimbun, Aspira LakeHomes and Aspira ParkHomes. We hope to secure more sales as the campaign has been extended towards year-end. Our inventory monetisation efforts are also on track considering that 35% of our sales for the period were from completed properties,” he said.

UEM Sunrise posted an increase in revenue of RM1.42 billion in the first six months ended June 30, 2019 versus RM861.1 million recorded in the same period last year.

This was driven by the completion and settlement of Aurora Melbourne Central’s separable portions (SP) 3 and SP4 and Conservatory’s SP1, SP2 and SP3 in Melbourne, Australia.

Property development activities contributed 95% of UEM Sunrise’s total revenue for the period, of which 73% were from its international projects mainly Aurora Melbourne Central and Conservatory.