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KUALA LUMPUR: Property developer UOA Development Bhd is looking to roll out two projects, one in Old Klang Road and the other in Sentul over the next few months.
UOA Development general manager Eugene Lee said the gross development value (GDV) of the two projects totals RM840 million and is expected to contribute to the company’s sales for financial year 2014 (FY14).
“We did some previews for our existing buyers and the response has been good, it should translate into sales starting next month,” said Lee after the company’s shareholders meetings yesterday.
As at December 2013, unbilled sales for the company stood at RM1.25 billion, according to Lee.
The Southbank project in Old Klang Road has a RM500 million GDV and will comprise the development of 647 residential units and six boutique office towers, while Sentul Point (phase 1) will consist of 462 units of residential and 15 units of shop offices.
Both the projects are expected to be completed by 2017.
The pricing for Sentul Point averages between RM500 and RM550 per sq ft (psf) with units ranging from 800 to 1,000 sq ft. The Southbank development will be priced slightly higher between RM650 and RM750 psf with units mostly at 900 sq ft, said Lee.
The units will cater to the growing demand of the medium-end market with its residential properties costing below RM1 million, he added.
Currently, 70% of its sales come from the residential segment with the remaining derived from commercial units, he said.
“UOA has a long history of developing commercial properties, but looking at the pipeline of residential projects that we have, the contribution will be higher in residential and will be more than 75%,” he added
He noted that UOA Development’s undeveloped landbank stood at 1,240 acres (501.81ha) within Greater Kuala Lumpur.
Meanwhile, UOA Development’s net profit fell 62% year-on-year to RM44.65 million in the first quarter ended March 31, 2014, from RM119.14 million a year ago. This came on the back of the absence of en bloc sales for the quarter under review.
Revenue was down to RM174.99 million compared with RM381.86 million previously.
In a filing with Bursa Malaysia yesterday, UOA Development said it recorded total new sales of RM335.5 million for the first quarter of 2014 with strong sales contribution from a new residential project — South View Serviced Apartments — and other ongoing projects such as Scenaria at North Kiara Hills and Kencana Square in Subang.
“For the remaining of 2014, we intend to launch approximately RM2 billion worth of development projects including Southbank in Old Klang Road, Sentul Point (Phase 1) in Sentul and a parcel of Jalan Ipoh land,” it said.
This article first appeared in The Edge Financial Daily, on May 29, 2014.
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