UEM Sun­rise main­tains sales tar­get

De­vel­oper ex­pects lo­cal prop­erty mar­ket to re­main sub­dued next year

The Star Malaysia - StarBiz - - News -

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 eu­[email protected]­tar.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.

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