UEM Sunrise Bhd partners WCT Holdings Bhd for RM3 billion project

UEM Sunrise Bhd partners WCT Holdings Bhd for RM3 billion project

KUALA LUMPUR, Dec 2 : Property developer UEM Sunrise Bhd’s partnership agreement with WCT Holdings Bhd yesterday to jointly develop a mixed-used development project in Mukim Serendah, Selangor, marks its bid to aggressively expand outside Johor over the next three years.

“So this is the first step that we have in order to diversify our landbank outside (of Johor),” its managing director and CEO Anwar Syahrin Abdul Ajib told a press conference after the signing ceremony yesterday.

“Hopefully within the next three to four years, we will be able to do that and we are already on the way there, as far as the revenue is concern, because of our international projects,” he added.

Anwar Syahrin said the group is looking for a 50:50 revenue contribution from its development in Johor and outside of Johor, noting that currently 70%- 80% of its revenue comes from its development in Johor.

“If we are able to have our revenue maybe … in the split of 50:50 outside Johor and Johor, that would be a good move for us.”

“We are looking at every opportunity available. Whether partnership, outright purchase and whatever in the market that meets our feasibility returns, we will look at it,” he added.

UEM Sunrise currently has 10,000 acres of landbank in Johor and 3,000 acres outside Johor, which includes its joint venture (JV) landbank.

“Klang Valley, Selangor and Kuala Lumpur is not a big portion of our landbank at this point in time. Not to the size that we want. So this 608 acres will be a big boost as far as our landbanking is concerned,” Anwar Syahrin said.

Under the agreement, UEM Sunrise is acquiring a 50% stake in Jubilant Courtyard Sdn Bhd (JCSB), a wholly-owned subsidiary of WCT Land Sdn Bhd for RM215 million, to jointly develop the 10 parcels of freehold land measuring 608.63 acres, which is owned by JCSB.

Anwar Syahrin said the mixed-used development project with a gross development value of RM3 billion is expected to be launched by the end of 2017.

Over the next 10 years, he said, the group is expecting RM300 million annual revenue from the 50:50 JV, adding that the project will start contributing to revenue by 2018 onwards.

UEM Sunrise’s and WCT’s subsidiaries, Sunrise Bhd and WCT Land, signed the conditional subscription and shareholders agreement. Sunrise and WCT Land will work together through JCSB as to develop the land.

On the outlook, Anwar Syahrin said despite the soft property market currently, the group expects to achieve its RM2 billion sales target this year, on a robust middle-income segment.

— THE SUN

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