UEM Sunrise raises sales target to RM2b for FY20

KUALA LUMPUR: UEM Sunrise Bhd has almost doubled its sales target to RM2 billion this year from RM1.2 billion last year as it plans to launch projects with a higher combined gross development value (GDV) and will carry out promotions to ease property purchases.

The new launches include Residensi Allevia in Mont’Kiara, Solaris Parq’s first office block in Dutamas, Residensi Equine 9 in Seri Kembangan in Selangor and Senadi Hills in Iskandar Puteri, Johor, said UEM Sunrise managing director and chief executive officer Anwar Syahrin Abdul Ajib.

“[A sales target of] RM2 billion may sound tough, but we are very understanding of our customers’ needs, and our focus group tells us [what they want],” he said.

For example, Residensi Equine 9 caters to expatriates such as South Korean and Japanese families with children because of its proximity to the Alice Smith International School.

The Residensi Allevia project is for people wanting to feel like living in a “semi-dee (semi-detached) in the skies” within Mont’Kiara.

Chief marketing officer Kenny Wong said the group will have promotions to facilitate the purchasing process.

“We will help make sure the way you (buyers) settle payments with us is more bearable and easier,” Wong said, adding this is in line with the group’s philosophy, EVE (Exciting, bringing Value and Easy to own).

Anwar Syahrin also said the group plans to divest non-strategic land banks worth RM400 million to RM500 million this year.

The group has identified several parcels to dispose of, including those in Seputeh (Kuala Lumpur), Seri Kembangan and Johor.

“Currently, we are in talks with potential buyers for the land disposal,” he said, adding that the group plans to use proceeds of the sales to buy strategically located land or assets in Malaysia, those in Melbourne and Sydney, Australia as well as in London, UK.

Last year, the group sold parcels totalling RM429.2 million.

On the rumoured merger between UEM Sunrise and Eco World Development Group Bhd (EcoWorld), Anwar Syahrin said the former is still undergoing a strategic review of its business and is exploring new ventures that would create sustainability for the group.

“The real estate business covers more than just property development and we need to look at a lot of other things. They (EcoWorld) are not the only organisation within this space. There are other parties as well,” he said.

He added that the group does not rule out mergers, depending on the strategic review’s outcome helping to determine its future direction.

“Because UEM Sunrise, five years from now, may be totally different. Property development may perhaps [contribute to] 65% or 70% of our business, [and] other elements may come from more recurring income stream businesses like property investment,” Anwar Syahrin noted.

Property development contributed to some RM2.79 billion or 96% of the group’s total revenue of RM2.91 billion for the financial year ended Dec 31, 2019 (FY19).

Property investment and other businesses contributed the remainder.

Source: TheEdgeMarkets