UEM Sunrise eyes RM4 Bln in unbilled sales

Last update: 25/02/2020

KUALA LUMPUR, Feb 25 -- UEM Sunrise Bhd expects to garner up to RM4 billion in potential unbilled sales in the next two years from the group’s ongoing and new projects, said managing director and chief executive officer, Anwar Syahrin Abdul Ajib.

The leading property developer aims to launch new projects with a gross development value (GDV) of RM2 billion this year, in addition to RM1.23 billion worth of ongoing as well as planned new launches, and completed inventories valued at RM689.5 million.

Its unbilled sales stood at RM1.8 billion as of end-2019.

Anwar Syahrin said the company was looking at long-term value and growth strategies amid the current political scenario, Covid-19 outbreak and oversupply situation in the country.

“We are in good shape. We have a billion cash. So for us it is looking for opportunities to go into new ventures that would create value for this organisation for the long term.

“We cannot be thinking short term. So, perhaps we can use the fund we have for something a bit more long term, maybe 70 per cent of it for long term. But in the meantime, we will allocate 30 per cent for niche developments that would help create, improve the sales funnel,” he told a media briefing on the company’s growth strategy and UEMS 2.0 here, today.

UEM Sunrise is targeting to secure RM2 billion sales this year.

It is also planning to dispose of RM400-RM500 million worth of non-strategic land parcels as portfolio rebalancing remains as one its key strategies in the financial year 2020.

The move would allow the company to sought for new strategic land and assets as well as reduce corporate debts.

Among the land parcels that have been identified for disposals are located in Mersing and Kulai, both in Johor, Tapah (Perak), Seputeh (Kuala Lumpur) and Seri Kembangan (Selangor). 

The company is already in talks with potential buyers for the Tapah and Seputeh lands.

In the financial year ending Dec 31, 2019, it sold about RM429 million worth of non-strategic lands and assets.

“When the opportunities come, because of our financial discipline, our access to borrowing is also faster and easier. So, we have better credit rating, we’ll be more competitive when it comes to pricing,” he added.

In addition, UEM Sunrise also keen to secure small pockets of land in Melbourne and Sydney, Australia as well as in London, United Kingdom.