UEM Sunrise maintains sales target

Developer expects local property market to remain subdued next year

KUALA LUMPUR: Property developer UEM Sunrise Bhd is maintaining its 2018 sales target of RM1.2bil for next year, in anticipation that the local property market to remain subdued in 2019.

Managing director and chief executive officer Anwar Syahrin Abdul Ajib said the company is “cautiously optimistic” about its sales performance for 2019.

“Next year, we will try to maintain the same target (as 2018). We will continue to explore opportunities by monetising our land bank in Kuala Lumpur and Johor,” he said after the launch of UEM Sunrise’s first hospitality-service offering, Hyatt House Kuala Lumpur (HHKL).

“We think that next year, the environment will be the same as this year. Hence, the strategy is that we will not launch a large number of projects.

“We’ll likely launch the big numbers in the third and fourth quarters of 2019. But earlier in the year, we’ll be launching on a smaller scale.”

On the outlook of the local property sector, Anwar said there is still demand in selected sub-segments.

“We’re still cautiously optimistic. We think that certain segments of the market are still there. People are a lot more picky in terms of what they want to buy.

“We’re not going to go big-bang. I won’t say bite-size, but something more palatable to address the risk of take-ups.”

UEM Sunrise’s net profit for its third quarter ended Sept 30, 2018 plunged 85% to RM21.17mil from RM142.85mil in the previous corresponding period due to lower land sales.

Revenue in the third quarter fell to RM430.10mil from RM846.10mil a year earlier, the property developer said in a filing with Bursa Malaysia.

For the nine-month period ended Sept 30, 2018, UEM Sunrise’s net profit increased to RM260.25mil from RM156.46mil in the previous corresponding period while revenue dropped to RM1.29bil from RM1.56bil.

Anwar said the company was “pretty close” to achieving its 2018 sales target of RM1.2bil.

Separately, he said UEM Sunrise may consider expanding into the hospitality business if it provided viable opportunities.

By EUGENE MAHALINGAM eugenicz@thestar.com.my New offering: (from left) UEM Sunrise retail and asset management GM Devamanokaran Poonagasu, Hyatt Hotels & Resorts Asia-Pacific full service franchise operations and Hyatt Place/Hyatt House regional vice-president Michael Koffler, Anwar, UEM Sunrise CFO Mohamed Rastam Shahrom and HHKL GM Bennett Peter at the opening ceremony.