By: CHERYL POO
KUALA LUMPUR: Property developer UEM Sunrise Bhd is targeting to achieve RM500mil in sales for its latest development in Australia by year-end.
Conservatory, its 42-level tower on Mackenzie Street in Melbourne, will be predominantly a residential project, with a signature retail component of 300 sq m and a total gross development value (GDV) of A$320mil (RM993mil).
To-date, 60% of the project had been sold since the company started its worldwide marketing initiative a month ago starting with key cities in China, followed by Singapore, Kuala Lumpur, Hong Kong and Macau, UEM Sunrise commercial chief operating officer Raymond Cheah said at a media briefing.
The balance 40% will be marketed in Europe, the United Kingdom, Brunei and Australia.
“The 60% sold so far has raked in some RM435mil in sales and the group is confident of bringing the figure up to RM500mil by year-end,” he said.
Conservatory features 446 units of one, two and three-bedroom apartments as part of The Victorian and Royal Collections, and another 22 penthouses, known as The Carlton Collection.
The starting price is A$447,000 (RM1.34mil) for a one-bedroom apartment.
Conservatory will be the third Melbourne investment for the company, which is the listed property arm of Khazanah Nasional Bhd. Khazanah is the Government’s strategic investment arm.
Cheah said the retail component of the development would be leased and that the company was looking at several international food and beverage and convenience stores.
“We may decide to sell the retail component eventually, but even so, we will manage it to control the tenancy mix,” he said, adding that UEM Sunrise would sell the entire residential portion without retaining any units.
“This has been a phenomenal deal for us, as we had paid A$22.5mil (RM69.83mil) for the (Conservatory) land, which will now create a GDV of A$320mil (RM993mil),” Cheah said.
He said the company was optimistic as Melbourne welcomed strong international as well as interstate migration from Sydney.
Designed by renowned, award-winning architect and principal and founder of Cox Architecture, Professor Philip Sutton Cox, Conservatory was inspired by the Victorian glass wardian case and its lush landscaping.
Construction is expected to begin in the first half of 2016, with completion slated for the second quarter of 2018.
For the second quarter ended June 30, 2015, UEM Sunrise posted a net profit of RM83.9mil, 12.6% higher than the RM74.5mil achieved in the same period last year.
Revenue came in at RM373mil, 16.9% lower than RM448mil last year, which the group attributed to a lower property development contribution.
