UEM Sunrise targets launches with RM4b GDV

UEM Sunrise Bhd, formerly known as UEM Land Holdings Bhd, plans to launch RM4 billion worth of properties this year.

According to its managing director and CEO Datuk Wan Abdullah Wan Ibrahim, out of the RM4 billion in gross development value (GDV), RM3 billion will come from Nusajaya, Johor, while the remaining RM1 billion will come from its central and international developments.

The developer is on an acquisition trail with sights on tracts located locally and overseas.

"We have a massive growth appetite. I can't share with you our five-year strategic plan [due to corporate governance] but believe me, it is big. To sustain and allow us to achieve those huge numbers, we need to create more profit centres. This would be in hot spots like Selangor, Kuala Lumpur and even Penang. We need to acquire more landbank to be able to achieve these kinds of numbers.

"We are very keen on Sabah. Kota Kinabalu is a beautiful city with a lot to offer. Eco-tourism is flourishing. Kota Kinabalu International Airport is the second busiest airport in Malaysia and I think business is doing well there. I think there is a good opportunity for us to plan something there that will attract not only local, but also foreign buyers. We are looking more at residential development there but if there are opportunities for commercial development, we will certainly consider it," he says, adding that finding ideal locations to develop is essential due to the terrain in Kota Kinabalu.

"As for foreign locations, we are taking our time but we are currently conducting some studies. We are going to be very conservative on the foreign front. We are not in a hurry. We believe in starting small and not overexposing ourselves. We already have a successful project in Canada that is almost fully sold and is now under construction. We have some land in Durban, South Africa, which we will look into once the economy stabilises there," Wan Abdullah says.

In terms of landbank, the developer fully owns about 6,000 acres in Nusajaya and nearly 3,500 acres outside of Nusajaya.

Strong demand in Nusajaya

"Demand for our property launches has been very successful, especially in Nusajaya. There has been a slight slowdown in the central region but we are still bullish about our projects there because they are in good locations. We hope to launch our Bangi project — a 164-acre township — by the end of the year. In Johor, we ended 2012 with a bang, with the launch of the RM1.2 billion Teega condominiums in Puteri Harbour. It is almost fully sold and 60% of the buyers are foreigners, mainly Singaporeans," he says.

UEM Sunrise has a number of launches lined up in Nusajaya this year, including apartments, bungalows, terraced houses and townhouses.

Wan Abdullah says there are five categories of buyers for their Johor properties. They include Malaysians with permanent resident status working in Singapore. "They are looking for a home they can retire to after their stint in Singapore ends. Then, there are Singaporeans who have businesses in Johor and frequent Johor almost daily. They have finally found a place that is safe, secure, has best-in-class architecture and is a sustainable development with infrastructure and high-speed broadband.

"The third category is Singaporeans who want to buy a weekend home at a fraction of the price they have to pay at home. For example, a three-bedroom apartment in Marina Bay costs about RM11 million. For that price, you can buy two bungalows and one semi-detached house in Nusajaya and still have some loose change for fit-outs. Next are the expatriates who work in Singapore and love the Asian lifestyle and may want to retire in this part of the world. The Malaysia My Second Home programme facilitates their entry into the country.

"Finally, there are the buyers from the region as a whole — from India right up to China. These people frequent Singapore, be it for education, commerce, business, healthcare or lifestyle. Singaporean's nightlife is vibrant with a lot of activities and tourist attractions. It is pretty expensive to buy in Singapore today and you can travel from East Ledang [in Nusajaya] to Orchard Road in 25 minutes during the off-peak traffic period," he adds.

Wan Abdullah says that Johoreans are also getting into the action as they are seeing something that they have not seen in Johor Baru before. "There are a lot of developers in Johor, including S P Setia Bhd and now Mah Sing Group Bhd. In Nusajaya, they get to see world-class infrastructure — not only good roads but good security as well."

When it comes to Nusajaya, Wan Abdullah says, "The feeling is we should have gotten more projects onto the market as the demand there is really good".

Among projects to look out for are Emerald Bay @ Puteri Harbour — a joint-venture project with Bandar Raya Developments Bhd. To be launched in July, the development comprises waterfront properties, including link homes, semi-detached homes and bungalows.

Then there's the 270-acre Motorsports City, which motorsports enthusiasts can look forward to, he says. The integrated mixed-use commercial development, with a GDV of RM3 billion, will be jointly developed with FASTrack Autosports Pte Ltd. It will include an F1-compliant test track, showrooms, service centres, F&B outlets and an entertainment hub.

Another much-anticipated project is the Ascendas Tech Park — a joint-venture with Ascendas Pte Ltd, with a GDV of close to RM4 billion on a 500-acre tract.

Perhaps the most used phrase by the developer over the past few years is the "tipping point" of Nusajaya. "The tipping point of Nusajaya has come and gone. We believe we have projected it accurately. A lot of the initiatives we have put into Nusajaya over the last five years have borne fruit and are thriving — among them: EduCity, the theme parks, Puteri Harbour and Traders Hotel. This has been reflected in our sales record. We did not achieve our targeted sales for 2012 but that was not the case for Nusajaya.

"Perhaps the takeaway of the tipping point is this — we are never satisfied with what we have. The rollout of the Ascendas Tech Park and Motorsports City are the first of the second wave of catalyst projects. The first wave included the State Administrative Centre, the theme parks, EduCity and Puteri Harbour. We want to identify more of these projects as we are never satisfied and want to reinvent and think through what would be required," he explains.

Now UEM Sunrise Bhd

The developer unveiled UEM Sunrise Bhd as the new brand identity and company name, replacing UEM Land Holdings Bhd on June 14. According to a statement from the developer recently, the UEM Sunrise brand leverages on the combined heritage of UEM Land and its wholly-owned subsidiary, Sunrise Bhd, that reflects a united entity driven by the singular vision of "Building Communities of the future, with you and for you".

"The vision that we have developed for UEM Sunrise reflects our ambitions and sets the tone for the company as a whole, permeating through our organisation and guiding our approach to expanding our business as well as our corporate social responsibility efforts," managing director and CEO Datuk Wan Abdullah Wan Ibrahim said in the statement.

UEM Sunrise builds upon the strengths of both UEM Land and Sunrise.

"When UEM Land and Sunrise came together two years ago, each company had their own strengths but very different cultures and DNA. Although a few options were potentially applicable, the company opted to consolidate the two brands to provide unification in all factors — including systems, processes, cultures and values, and to eliminate physical and emotional separation arising from the dual brands.

"As such, it was important that the integration exercise worked to leverage the combined heritage of the two companies and engaged all stakeholders, while working towards building a unified company with a singular vision," Wan Abdullah said.


This story first appeared in The Edge weekly edition of July 1-7, 2013.