UEM Sunrise sees more launches in 3Q2020

This article first appeared in City & Country, The Edge Malaysia Weekly, on March 2, 2020 - March 08, 2020.

Low Yen Yeing/The Edge Property

The 73-acre Kiara Bay development in Kepong is one of UEM Sunrise’s recent launches

Photo by UEM Sunrise

The developer expects to deliver Dahlia Phase 1 and Eugenia Phase 1 in Serene Heights this year

Photo by UEM Sunrise

-A +A

UEM Sunrise Bhd plans to launch RM2 billion worth of properties this year, said managing director and CEO Anwar Syahrin Abdul Ajib at a media briefing at the Kiara Bay Sales Gallery in Kepong on Feb 25.

“A large chunk of these launches will be in 3Q … that’s when we are hoping to see an upswing,” he said.

According to him, the new launches include Allevia in Mont’Kiara, 

Equine 9 in Seri Kembangan, Senadi Hills in Iskandar Puteri, Johor, and the first office block in Solaris Parq, Dutamas.

Anwar said Allevia, which has a gross development value of RM485 million, will offer bigger units in response to a market survey. “When we launched Astrea, we had smaller units but the bigger units [were taken up faster]. Surprisingly, there are people who are willing to pay for 1,800 to 2,600 sq ft units. These are people who are predominantly buying for investment and for their children, and empty nesters.

“[Allevia] will be something very unique. Not often will there be an opportunity to get a brand-new development that caters for semidee living in the sky,” he added.

As for Solaris Parq, Anwar said the company is targeting to launch one of the office blocks in the second half of the year. Solaris Parq Plot B, which will have a GDV of RM2.5 billion, will comprise retail, commercial and residential components. “This project is targeted at those who want to be on the fringes [rather than the centre] of the CBD and where going to town takes 15 to 20 minutes,” he said. He added that the offices will enjoy a 100,000 sq ft building plate and come with naming rights, which would be attractive to Malaysian corporates.

Equine 9, which has a GDV of RM722.3 million, is located within walking distance of Alice Smith International School, making it attractive to expatriates. Bread-and-butter development Senadi Hills will see strong demand due to the big population in Bukit Indah, Anwar said.

As part of its efforts to rebalance its portfolio, the company will dispose of RM400 million to RM500 million worth of non-strategic land. “It is basically whether the returns on such projects will meet our investment criteria, because when it doesn’t … we will let them go. We need to focus on projects that we feel will give us better returns on investment.”

Key areas that UEM Sunrise will continue to focus on this year are Gerbang Nusajaya, Aspira andPuteri Harbour  in Iskandar Puteri as well as Kiara Bay.

In terms of overseas opportunities, Anwar said the company is looking for hot spots in Melbourne, Sydney and London. “We are also looking to firm up negotiations with a JV (joint-venture) partner for our Durban Point project in South Africa,” he added.

This year, the company expects to deliver Serimbun and Aspira LakeHomes Phase 3 in Iskandar Puteri as well as Dahlia Phase 1 and Eugenia Phase 1 in Serene Heights, Bangi.

Last year, UEM Sunrise delivered 1,874 units in Denai Nusantara, Aspira LakeHomes Phases 1 and 2 and Almas Retail in Iskandar Puteri, Residensi Sefina in Mont’Kiara, and Camellia in Serene Heights.

The company’s total revenue for FY2019 increased to RM2.9 million from RM2 million in FY2018. This was mainly driven by the completion and settlement of Aurora Melbourne Central and Conservatory in Melbourne, according to its press statement. On the local front, work on the construction of Residensi Solaris Parq, Residensi Astrea and Kiara Kasih is underway.

“In terms of sales, the company did RM1.1 billion, a 21% decrease compared to 2018, mainly because there were some delays in the launch of our products as well as [our focus] on inventory monetisation efforts. We have been able to reduce our inventory levels significantly.”

According to Anwar, half of the transactions were of properties priced above RM1 million, while those priced between RM500,000 and RM1 million accounted for 43%.

UEM Sunrise currently has 27 active projects. “This allows us that flexibility and nimbleness to meet the demands of our customers. This is part of our strategy,” Anwar said.

As it embarks on its 10-year business cycle and in conjunction with its 50th anniversary, the company has introduced a new tagline, “Find Your Happy”.