KUALA LUMPUR, 23 August 2017 – UEM Sunrise Berhad (“UEM Sunrise” or the “Company”) today announced its financial results for the six months ended 30 June 2017 where total revenue recorded for the period increased to RM1,439.6 million as compared to RM795.6 million reported for the corresponding period in 2016, an increase of approximately 81%. Profit after tax and non-controlling interest for the six months period stood at RM155.8 million, reflecting an increase of about 170% compared to RM57.7 million in the same period last year.
Property development activities contributed 67% of total revenue for the current period with the three major revenue contributors being Residensi 22 in Mont’Kiara, Aurora Melbourne Central in Melbourne and Teega in Puteri Harbour. Projects in the Central region contributed the highest; 42% of property development revenue followed by 30% from international projects and 28% from the Southern region. Revenue from land disposal registered a contribution of about 29% largely due to the disposal of three parcels of land measuring 4.9 acres in Richmond, Canada which was disposed to South Street Development Group, a Canadian-based real estate developer for CAD$113.0 million or RM371.4 million in line with the Company’s decision not to pursue the development of the Richmond lands, and consolidate efforts and focus on developments in Malaysia and Australia. Unrecognised revenue as at 30 June 2017 remains sizable at RM3.3 billion as compared to RM4.3 billion recorded in the same period in 2016.
Property development sales for the period was RM391.7 million, 46% of which was contributed by the Southern region mainly from Estuari Gardens, Melia Residences and Denai Nusantara followed by 32% from the Central region particularly from Symphony Hills, Serene Heights Bangi and Residensi 22 Mont’Kiara. The remaining 22% was from the Company’s international projects, mostly Conservatory and Aurora Melbourne Central in Australia.
To date, the Company has launched projects with total Gross Development Value (“GDV”) of approximately RM1.2 billion, the latest being Mayfair in Melbourne, Australia which commands a GDV of RM1.1 billion, in addition to a new phase of Serene Heights Bangi, Dahlia in mid-July 2017 and Phase 3E of Melia Residences in early June 2017.
Commenting on the financial results, Anwar Syahrin Abdul Ajib, Managing Director/Chief Executive Officer of UEM Sunrise said, “Our revenue of RM1.4 billion for the first half of 2017 is the best compared to past years’ corresponding financial period, since the listing of UEM Sunrise in 2008. Notwithstanding the disposal of our Alderbridge lands in Richmond, Canada, contribution from property development revenue has also improved in view of strong construction progress achieved during the period. We are extremely pleased with these results.”
“We expect to see the completion of Residensi 22 Mont’Kiara, Estuari Gardens and Bayu Angkasa apartment, a sub-phase of Nusa Bayu in Iskandar Puteri by year end. Teega at Puteri Harbour has been delivered progressively to our buyers since February and we have also started on the delivery of Arcoris Mont’Kiara’s 262 business suite units starting from end of June. The SOHO units are targeted to be delivered to the buyers in stages starting towards the end of this month whereas the serviced residences are targeted for delivery in the third quarter of 2017. The four-star Hyatt House hotel is expected to commence operations in the first quarter of next year.”
Anwar added further, “Sales from projects in the Southern region continue to contribute positively continuing the trend that started in the fourth quarter of 2016. With the right location and product mix, we believe that the market is more receptive on landed mid-market residences. In response to this shift in demand, we plan to launch a new project, Serimbun in Iskandar Puteri, in the fourth quarter of this year. In the Central region, we plan to launch a high-rise residential development, Solaris Parq Residences in Solaris Dutamas in October this year.”
“To boost property sales, we recently launched “UEM Sunrise’s EASY Own Plan” which offers buyers Easy Entry, Easy Plan and Easy Privileges scheme for our Symphony Hills, Residensi Ledang in East Ledang, Estuari Gardens, Nusa Idaman’s twin villas and Bayu Angkasa. In conjunction to this scheme, we have rolled out the third installation of the anticipated “Signature Selection: Road to Russia 2018” campaign in which eligible purchasers stand a chance to win lucky draw prizes for trips to Moscow, Russia in 2018 to be at the biggest sporting event of next year”, Anwar pointed out.
Commenting on its international projects, “We are excited to unveil our third project in Melbourne designed by the world-renowned Zaha Hadid Architects, the ultra-luxurious Mayfair on St Kilda Road. Offering a limited 158 residential units of one to five bedrooms ranging from 750 to 6,000 square feet with price starting from RM2.4 million, the exclusive preview in Malaysia was held on 22 July 2017. Aimed at ultra-high net worth individuals and local upgraders, Mayfair offers luxury and elegance – a new lifestyle unseen in Melbourne with features such as a 24-hour concierge services, wine lounge, innovative automated car valet system, private lift lobbies and immaculately crafted interior finishes. The project will be launched officially in Melbourne in September 2017 concurrently with the completion of the project’s onsite Display Suite. Site works are targeted to commence in the second quarter of 2018 with completion targeted by the second quarter of 2021”.