UEM Sunrise selling land in KLCC area

PPC International managing director Datuk Siders Sittampalam (pic) said the plot of land is located and “highly sought-after.” “It’s prime land and is dual frontage, as it faces Jalan Ampang and Jalan P. Ramlee."

PETALING JAYA: UEM Sunrise Bhd is disposing of 1.59 acre prime land within the KLCC area, which is set to generate interest from both local and foreign investors, according to property experts.

PPC International managing director Datuk Siders Sittampalam said the plot of land is located and “highly sought-after.”

“It’s prime land and is dual frontage, as it faces Jalan Ampang and Jalan P. Ramlee.

“It’s a sizeable piece of land for a well-planned and high-end development, ” he told StarBiz.

Given its proximity to the Kuala Lumpur Twin Towers, Siders said the land would fetch between RM3,500 and RM4,000 per sq ft.

“In order to derive the best returns, the development has to be apt for the KLCC location, ” he said, adding that there are not many plots of land within the vicinity that are available for sale.

“I’m sure there will be some interest from both local and international investors. One can’t find prime-enough land, ” Siders said.

He added that the sale is “not untimely” in spite of the global pandemic at the moment.

“Even if anyone were to start developing it, they would not launch it tomorrow. That will only happen maybe a year from now.

“I feel that the timing is just about right.”

In an advertisement yesterday, UEM Sunrise said the land, which is zoned as commercial and located in Section 58, Bandar Kuala Lumpur, is up for tender. The tender closes at 5pm, March 5.

An analyst said the company could be disposing of the land to benefit from its prime status, as well as focus on more affordable-to-mid-range homes.

UEM Sunrise had yet to revert to StarBiz queries as at press time.

Meanwhile, AmInvestment Bank in a recent report said UEM Sunrise has 18 ongoing projects, mainly residential developments in Iskandar Puteri, Johor, with seven of them being joint-ventures with third parties. “Moving forward, UEM Sunrise is planning to launch low-cost residential units in Cheras in the fourth quarter of 2021, with an indicative gross development value (GDV) of RM1.1bil.

For the nine-months period ended September 2020, UEM Sunrise posted a core net loss of RM134mil.

This was also the first loss incurred since its listing in 2008, said AmInvestment Bank.

“Nine-months ended September, 2020 revenue plunged by 70% year-on-year, mainly due to slower project progress completion as a result of the Covid-induced movement control order.”

The research house said UEM Sunrise’s unbilled sales stood at RM1.7bil as at September 2020, whereby 74% comprised local projects.

“UEM Sunrise has launched projects worth RM900mil in GDV, which is near its target GDV of RM1bil for 2020.

“Total sales of RM374mil as at September 2020 was below its RM1bil target for the year. Nonetheless, management guided stronger sales in the fourth quarter of 2020, contributed by its Australian project and land sale in Johor.”

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