UEM Sunrise on firm footing due to large landbank

UEM Sunrise chairman Tan Sri Dr Ahmad Tajuddin Ali speak to the media during the press conference after the AGM at Persada Plus in Subang Jaya on 24 April 2014.The Star/Sia Hong Kiau

KUALA LUMPUR: With a large landbank of 5,261ha and potential gross development value (GDV) of RM80bil, property developer UEM Sunrise Bhd remains a strong company, said outgoing chairman Tan Sri Ahmad Tajuddin Ali.

He said the land was inherited with no holding costs and was good for development for up to the next 30 years.

“The current soft market has enabled the company to strengthen its internal processes and further build the required fundamentals to achieve goals and vision,” he told a press conference after the company’s AGM on Thursday.

UEM Sunrise has appointed Tan Sri Zamzamzairani Mohd Isa as its new chairman, effective on Thursday, to replace Ahmad Tajuddin who chose to retire but will still hold the chairmanship for the UEM Group board.

Ahmad Tajuddin said with the soft economic landscape and stricter lending environment, there was still notable demand for mid-market landed properties.

“The company recognises an opportunity to leverage on the existing land bank to develop double-storey terrace houses in both the southern and central regions to meet increased demand for mid-market landed properties,” he added.

Managing director and chief executive officer Anwar Syahrin Abdul Ajib said the company’s existing land bank was mainly in Johor (4,047ha), followed by Perak, Selangor and Kuala Lumpur, as well as in Durban, South Africa.

“We may want to take advantage of opportunities arising from the land bank in the near term, especially in the Klang Valley and at nearby strategic infrastructure and transportation hubs.

“For the international presence, the focus is on projects in Australia, especially in Melbourne and Sydney. We may also want to develop our land bank in Durban, and are looking for suitable investors for a retail, residential and hotel project at the beautiful waterfront area,” he added.

Anwar Syahrin said the sales target for UEM Sunrise this year was RM1.2bil on the back of GDV of RM1.7bil from planned launches. - Bernama