UEM Sunrise disposes of Melbourne property for RM355m

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KUALA LUMPUR (Nov 22): UEM Sunrise Bhd is disposing of one of its properties in Melbourne for A$125 million (RM354.6 million).  

It comprises a serviced apartment block that forms part of the Aurora Melbourne Central, together with 10 car park lots and part of the ground floor retail area measuring a gross floor area of 14,900 square metres (sqm).  

In a filing with Bursa Malaysia, UEM Sunrise said its wholly-owned subsidiary UEM Sunrise (La Trobe Street) Pty Ltd has today entered into a contract of sale with Scape Australia Management Pty Ltd. 

The serviced apartment includes 147 studio apartments sized between a range of 34 sqm to 37 sqm, and 105 one-bedroom apartments sized from 36 sqm to 43 sqm.  

Completed in September, the property has a dedicated main entrance lobby with rooms located on levels 10 to 32 of Aurora Melbourne Central.  

Aurora Melbourne Central itself is an 88-storey mixed-use development comprising 959 residential apartments, 252 serviced apartments, office suites and signature retail, with a total gross development value (GDV) of A$800 million. 

UEM Sunrise said the proposed disposal is part of its ordinary course of business as a property developer, to unlock the sales value of the property at a higher price.  

"UEM Sunrise group has successfully developed Aurora Melbourne Central and is now disposing its development component at a gain.
 
"The disposal allows UEM Sunrise group the ability to monetise the completed Aurora Melbourne Central components, allowing it to pursue further property development opportunities," it added.  

For now, UEM Sunrise has yet to determine the allocation of the utilisation of proceeds, as well as its timeline, as it is still exploring various opportunities. 

It added that the proposed disposal is expected to be completed by the second quarter of 2020. 

Shares of UEM Sunrise went down by 1 sen or 1.32% to close at 75 sen today, for a market capitalisation of RM3.403 billion.