The JLDA was formalised today between UEM Sunrise, TM and Sunrise Quality Sdn Bhd (“SQSB”), an indirect wholly-owned subsidiary of UEM Sunrise, which will act as the development vehicle for the Project. Under the JLDA, SQSB will pay TM a Guaranteed Land Cost of RM150 million (by way of a 10% refundable deposit and the balance in stages after all conditions precedent are met) as well as a 5% share of the Gross Development Value (“GDV”) of the project (net of discounts) which will be determined later. The land consideration was arrived at on a willing buyer and willing seller basis which was achieved after an open tender exercise. SQSB will be fully responsible for the planning and development of the land parcel which is strategically located close to the Kuala Lumpur city centre and enjoys beautiful and panoramic views of the Bukit Nanas Forest Reserve and the KL Tower.
Dato’ Izzaddin Idris, Executive Director of UEM Sunrise said, “The agreement inked with TM will allow us to showcase our expertise in delivering a unique lifestyle high rise development within the Kuala Lumpur city centre. We hope to secure the necessary approvals over the next 12 to 24 months. This deal is in line with our strategy to diversify as well as grow our business in the Central Region and we expect this project to contribute positively to our medium term growth.”
UEM Sunrise had today released its quarterly financial results for the first quarter ended 31 March 2016, which saw total revenue declined to RM257.8 million from RM417.4 million in the corresponding period of 2015. The decrease is mainly due to reduction in property development sales in the Southern Region. Furthermore, in the preceding year, the Group recorded a higher revenue contribution from the higher construction progress for two key projects, Teega and Summer Suites. Profit After Tax and Non-Controlling Interest was also lower at RM3.0 million compared to RM53.1 million in 1Q 2015 mainly attributable to lower profit from operations, higher finance cost due to increase in borrowings and lower capitalisation of interest following the completion of projects. At the same time, contribution from associates and joint ventures was also lower in the current quarter.
Property development sales for the quarter was RM229.2 million, 76% of which is contributed by international projects mainly from Conservatory in Melbourne; 15% from projects in the Central Region mainly from Residensi Sefina Mont’Kiara and Serene Heights Bangi; and the balance of 9% from the Southern region, largely from Estuari Gardens at Puteri Harbour. Unrecognised revenue as at 31 March 2016 stood at RM4.7 billion compared to RM3.9 billion in the same quarter last year.
For the current financial year, UEM Sunrise has to-date launched two new projects to the market. Denai Nusantara, a high rise affordable homes development with a total GDV of RM188.5 million as well as Melia Residences (Phase 1, Phase 2 and Phase 3) that commands a total GDV of RM280.1 million. At the same time, UEM Sunrise is actively engaging industries/enterprises overseas to locate their business and operations in Iskandar Puteri specifically Nusajaya Tech Park and Southern Industrial & Logistics Clusters (“SiLC”) for the mid and long term sustainability of its developments in the Southern Region.