KUALA LUMPUR (May 31): UEM Sunrise Bhd, which had in January awarded London-based Atkins as the master planner for Gerbang Nusajaya's transit-oriented development (TOD) plot, will reconsider its plan following the government’s decision to scrap the Kuala Lumpur-Singapore High Speed Rail (HSR) project.
Sprawling 4,551 acres, Gerbang Nusajaya is the second phase development of the RM42 billion Iskandar Puteri project in Johor and is one of seven stations in Malaysia for the HSR project.
UEM Sunrise managing director and chief executive officer Anwar Syahrin Abdul Ajib said the group will be relooking at the masterplan that has been updated by Atkins to incorporate the station design and rail alignment.
“The station, spanning 70 acres, is located within the TOD plot, which measures a total of 300 acres. Now that the station is no longer needed, we have to put the TOD on hold and relook into the plan," he told a press conference after the group's annual general meeting today.
“(Apart from the station and the TOD), we have other development plans surrounding the plot. I’m sure we can come out with good (alternative) ideas (for Gerbang Nusajaya),” he added.
As such, Anwar said business is as usual for UEM Sunrise. The medium-term impact from the revision of its masterplan is expected to be limited, he added.
“As far as the company is concerned, there is a very big development in Gerbang Nusajaya. The HSR is only one element of it and we have other parcels of land that we have plan to do and we are actually activating (developing) it,” Anwar added.
Prime Minister Tun Dr Mahathir Mohamad confirmed on Monday (May 28) that Malaysia will drop the KL-Singapore HSR project, saying the RM110 billion project will not earn the country a single cent. The 350km line was targeted to begin operating in 2026.
Without the HSR, UEM Sunrise, together with the government, will have to come out with an alternative to improve the connectivity between Johor and Singapore, Anwar said.
“It is very important if you look at how a township comes out. It has always got to do with the infrastructure, whether rail, road or air. Right now, the only way to get to Singapore (from Johor) is by road and air.
"So, hopefully, there will be other alternatives in terms of (improving) the connectivity. But that is very much a government policy matter and it is above us to comment,” Anwar added.
The Gerbang Nusajaya is a township development spanning 25 years, featuring a Fastrack City motorsport destination, offices and industrial parks known as Nusajaya Tech Park, as well as residential precincts such as Melia Residences, Estuari Gardens, Gerbang Nusantara and Serimbun, with a total gross development value of RM139.3 million.
UEM Sunrise, which had revised down its property sales figures for the first quarter of 2018 to RM354.1 million, from RM434.3 million earlier, will focus on mid-market developments in the southern and central regions, going forward, Anwar said.
This means properties ranging from RM500,000 to RM1 million per unit, he added.
“Our strategy is to focus on more mid-high market developments, as well as high-end properties in sought-after addresses such as Mont Kiara, where our reputation and robust market demand provide the right recipe for success.
“Capitalising on selective demand in the Klang Valley, we will continue to build our landbank in the central region, especially in areas with great accessibility,” Anwar said.
To date, its property sales stood at RM538.6 million and the group is on track to achieve its target of RM1.2 billion for 2018.
Other ongoing developments include Almas, Estuari Gardens, Denai Nusantara — all in Iskandar Puteri, Johor; Sefina Residences and Residensi Solaris Parq — in Mont Kiara; and the 448-acre Serene Heights Bangi township in Selangor.
The group will also continue to expand its rent-to-own scheme through collaboration with commercial banks, since its launch of the Easy Own Plan in 2017 — a scheme to help customers fulfill their desire to own homes.
Meanwhile, Anwar has a subdued market outlook for the remaining 2018, with some improvements by the middle of 2019.
“Everybody [is] going to be a little bit cautious when it comes to the property business. We feel that probably there will be a better recovery by the middle of next year,” he said.
UEM Sunrise shares closed one sen or 1.37% lower at 72 sen today, with 3.78 million shares done, giving it a market capitalisation of RM3.38 billion.