KUALA LUMPUR: UEM Sunrise Bhd has announced an increased sales target of RM1.5bil with plans to launch projects worth a gross development value (GDV) of RM3.3bil, totalling 3,526 units.
This includes the 1.3-acre site in Collingwood, Melbourne, Australia, acquired in 2020. The developer planned a mixed-development project with an estimated GDV of A$250mil (RM739mil).
In an aggressive launch pipeline centred on the second half of 2022, the company will continue to launch new phases of existing sought-out projects, namely Serene Heights Bangi and Senadi Hills as well as the Aspira-themed products in Iskandar Puteri.
This also includes a new mixed-use transit-oriented development on the 6.86-acre land adjacent to the Taman Connaught mass rail transit (MRT) station in Cheras and a new mixed integrated high-rise development in Mont’ Kiara, code-named MK 31.
“UEM Sunrise will continue to listen to market demands and respond with a range of relevant and quality products at the right locations, built with sustainable practices and designs, all packaged with value that is worth its price tag,” said UEM Sunrise chief executive officer Sufian Abdullah.
The rise in the sales target was in lieu of UEM Sunrise exceeding its RM1.2bil sales target for the year 2021, selling 1,595 units and hitting RM1.46bil in sales despite the pandemic and fewer new launches.
Developments in the Klang Valley include Residensi Ava in Kiara Bay and Residensi Allevia were the main contributors, with sales values of RM438.4mil and RM215.7mil respectively constituting 45% of UEM Sunrise’s total sales. The central region developments make up 71% of the total sales while the remaining is contributed by the southern region products.
For 2021, UEM Sunrise maintained a conservative outlook amidst the ongoing Covid-19 pandemic and the movement control orders, launching only 40% of the total products set at the beginning of the year.
“We improved significantly on our sales compared to 2020 when we achieved RM1.13 billion. Despite our targeted and laser-focused launches, subdued consumer sentiment and tightened lending protocols for last year, we did very well in surpassing our sales targets, proving that customers believe in the quality and value of our products and that this company is on the path of recovery,” said Sufian.
Owing its successes to the Chinese New Year Must Cari Ong campaign and the Happy Chase Virtual Live Show, the Home Ownership Campaign 2.0, which ended on Dec 31 last year also saw a bump in sales. Sales in December saw an approximate surge of 2.5 times compared to its total sales in November 2021.
He added that the company improved its performance in the second half of the year as the economy reopened following the National Recovery Plan after mitigating the Covid-19 pandemic with a successful vaccination programme.
UEM Sunrise is currently making up for the lost time in ensuring that construction is back on schedule after the closure of sites during the Movement Control Order.
Following the increase in the cost of building materials, UEM Sunrise will be revamping its procurement strategy for better cost management. It will further its usage of tools such as Building Information Modelling (BIM) to allow greater planning and visualisation of the entire project during pre-construction.
The company will continue to monitor the market to acquire strategically located landbanks, particularly in the central region for quick turnaround and new project pipelines. Efforts to divest non-strategic lands are also ongoing, in line with its land banking portfolio rebalancing strategy.