KUALA LUMPUR: Property developer UEM Sunrise Bhd expects to record a lower property sales target of RM1.2bil in the current financial year of 2019 (FY19), amid the challenging property development market.
In FY18, the 66%-owned subsidiary of Khazanah Nasional Bhd reported a total sales of RM1.43bil, which exceeded its sales target by 19% year-on-year.
Despite the lower forecast for total property sales in 2019, UEM Sunrise managing director and chief executive officer Anwar Syahrin Abdul Ajib remains positive on the group’s outlook, led by the sales in its existing projects and the new launches.
Speaking to reporters at the sidelines of the Invest Malaysia event yesterday, Anwar said UEM Sunrise is expected to record stronger financial results in the current FY19.
In FY18, the property developer’s net profit more than doubled to RM280.33mil, up from RM105.57mil a year earlier.
Revenue for the 12-month period rose by 9.86% to RM2.04bil.
“For 2019, we have a few pocket launches and there will be a lot of smaller sized property launches.
“Before this, we do about 400 units in a project, but now we go for 150 to 200 units per projects.
“Total gross development value of our new launches this year will be about RM1.5bil to RM1.6bil,” he said, adding that the prices of properties would range between RM500,000 to RM1mil.
When asked about UEM Sunrise’s plan to monetise non-core assets, Anwar said “the process is ongoing”.
He pointed out the company would be disposing some of its non-core assets if the prospective buyers offer acceptable prices.
“The process [to dispose] will take time, but we hope to achieve something solid by the third or fourth quarter of this year.
“Proceeds from the monetisation exercise can be used to buy more new strategic landbanks,” he said.