BY TOH KAR INN
PETALING JAYA: UEM Sunrise Bhd will focus on strengthening its fundamentals in order to steer growth and weather the challenging property market in 2016 and beyond.
The key priorities include establishing a comprehensive marketing strategy, managing operating costs, intensifying the group’s systems and processes as well as further building its reputation as a value-driven developer.
“We foresee 2016 to be a very challenging year for the sector. We share the views of Ratings Agency Malaysia whereby we expect demand to stay subdued as the Malaysian economy slows, tight lending conditions continue to linger, and consumer sentiments remain passive,” said UEM Sunrise executive director Datuk Izzaddin Idris during the company’s AGM yesterday.
Izzaddin added that UEM Sunrise would continue its efforts to deliver diverse range of products with strong concepts and quality, such as the newly launched Melia Residences (Phase 1 to 3) in Gerbang Nusajaya with an estimated gross development value (GDV) of RM280mil.
Total GDV for all five phases of the development is RM573mil. Phase 3 of Melia Residences, which was launched end April 2016, has since recorded a take up rate of 50%. Furthermore, Iskandar Puteri will remain UEM Sunrise’s long term growth driver in the southern region.
The group plans to intensify the development of Gerbang Nusajaya into the commercial and business engine of Iskandar Puteri and gateway of Iskandar Malaysia.
UEM Sunrise’s remaining landbank as at April 30, 2016, is 13,664.2 acres, with 3,850 acres in the central region, 9778.2 acres in the southern region and 36 acres internationally.
In view of the current consumer sentiments and market demand, UEM Sunrise will also continue to foster organic growth via propety-related businesses.
“The current property down cycle is an opportune time for us to concentrate on creating a recurring income base for the company by leveraging on our existing projects such as our retail businesses - Publika in Solaris Dutamas, Kuala Lumpur, and Mall of Medini in Iskandar Puteri, as well as expanding our revenue from property management, project management, leasing services and hospitality,” said Izzaddin.
