By Joseph Wong
KUALA LUMPUR: UEM Sunrise Bhd is targeting a sales target of RM2bil this year following their resounding financial performance last year.
To support this target, the developer will be launching properties worth an estimated gross development value (GDV) of RM2bil over the next 10 months.
In the final quarter of 2019, UEM Sunrise achieved a higher revenue of RM2.9bil compared to RM2.04bil in 2018 2018. The higher revenue was mainly driven by the completion and settlement of Aurora Melbourne Central and Conservatory in Melbourne, Australia.
At the local front, the construction progress of Residensi Solaris Parq, Residensi Astrea, and Kiara Kasih are underway, replenishing the revenue of previously completed projects.
UEM Sunrise managing director and CEO Anwar Syahrin Abdul Ajib said the company would be focusing on mid-market landed property this year mainly the Aspira themed products, and a new mid-market landed development, Senadi Hills, both in the Southern region, in addition to new phases at Serene Heights Bangi in Central.
It will also be launching Residensi Allevia in Mont’Kiara and Residensi Equine 9 in Seri Kembangan, including Solaris Parq’s first office block, he said.
In cognisance of the prevailing market conditions, particularly the business and household sentiment, UEM Sunrise believes in opportunities of new project launches to ensure the sustainability of their business and to maintain a strong balance sheet.
“We are not just looking just to build property now but also (look at) property management where we can generate recurring income,” Anwar said, adding that the property development is now very data-driven.
For bigger projects like the 73-acre Kiara Bay, which has a GDV of RM15bil, UEM Sunrise has to look at the development holistically, he explained.
“We have to build an entire eco-system that is sustainable for a project that is going to be constructed over the next 15 to 20 years,” he said. “Publika didn’t happen overnight. It took time.”
For the year 2020, UEM Sunrise will continue to leverage on its expertise and competencies as a township master planner to focus on its key growth areas – Gerbang Nusajaya, Aspira and Puteri Harbour, including Kiara Bay.
The company plans to transform these areas into urban integrated livable eco-system developments, he said.
Divestment of non-strategic lands and assets, as well as land portfolio rebalancing, remains one of the company’s key strategies, said Anwar.
There is a lot of consideration going into divestments to ensure that there is continuity of the intended purpose of what the asset has been earmarked, he said.
This will ensure that there is growth and continuous economic activities. Proceeds will be channelled for new ventures and opportunities which will include securing new landbanks in hotspot areas including Melbourne, Sydney and London.
Taking into consideration the outlook for the industry, oversupply will still be an issue and will be the platform in showcasing UEM Sunrise’s resilience.
“The market will eventually absorb the overhang but in the meantime, this will be what that separates the developers with a good track record of delivering quality products on time and a healthy balance sheet from the others.
“At the end of the day, UEM Sunrise must be the top of mind when it comes to being the top developer that inspires happiness,” said Anwar.