PETALING JAYA: UEM Sunrise Bhd
’s recent development rights agreement with property developer Exsim KLCC Sdn Bhd is set to unlock value for the group, moving forward.
CGS International (CGSI) Research said it viewed this as a well-structured value-unlocking exercise which will improve near-term earnings and reduce development risks, all while supporting UEM Sunrise’s broader landbank monetisation story.
“While the transaction alone may not drive a full valuation rerating, we believe further landbank monetisation exercises could narrow the market’s discount to its book value over time,” CGSI Research said.
The said land is a 1.59-acre freehold commercial land parcel on Jalan Ampang, Kuala Lumpur which is not occupied at the moment.
The proposed development will include a hotel, hotel residences and a retail mall, and is expected to be completed by December 2036.
As of December 2025, the land’s net book value stood at RM320.7mil but in February this year, the market value of the land was registered at RM327mil.
CGSI Research said that under the agreement, UEM Sunrise is entitled to a guaranteed entitlement of RM415mil, plus 10% profit sharing if the project’s actual profit before tax exceeds RM610mil.
“The RM415mil guaranteed entitlement implies about RM6,000 per sq ft for the land, a sizeable premium over the RM327mil market valuation. Hence, we believe UEM Sunrise’s agreement has fetched a rather premium land pricing for a non income-generating asset,” it noted.
Furthermore, UEM Sunrise’s management expects an estimated RM66mil in gains from the development rights, supporting financial year 2026 (FY26) earnings and earnings per share.
