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First Separable Portion Of Aurora Melbourne Central Completed; UEM Sunrise Upbeat On Performance
Digital Media: UEM Sunrise reaping the benefits from the completion of Aurora Melbourne Central’s first separable portion with the remaining to be recognised until 2019. Profits have improved driven by projects’ cost savings, lower operating expenses and land sales while property sales also improved with 50% contributed by the Central region.
Full Release: KUALA LUMPUR, 28 November 2018 – UEM Sunrise Berhad (“UEM Sunrise” or the “Company”) today announced its financial results for the nine months ended 30 September 2018 (“9M 2018”) where total revenue recorded for the period was RM1,291.2 million compared to RM1,557.3 million in the same period last year (“9M 2017”) as most projects in 9M 2018 are at the early stages of their development cycle in comparison to 9M 2017 which saw the completion of Teega at Puteri Harbour and Arcoris Mont’Kiara. Profit after tax and non-controlling interests stood at RM260.2 million, an increase of approximately 66% from RM156.5 million reported in 9M 2017 mainly driven by the handover of the first separable portion of Aurora Melbourne Central, the Company’s maiden project in Australia, projects’ cost savings and contribution from land sales.
Property development activities accounted for 63% of the total revenue with the Southern region contributing 45% followed by 31% from Central and 24% from International. The largest property development revenue contributor recorded for the period was Aurora Melbourne Central, followed by Almas and Estuari Gardens both located in Puteri Harbour, Iskandar Puteri. Land sales contributed 31% to the total revenue mainly from the sales to Country View Berhad and RA Suria
Sdn Bhd, both in Iskandar Puteri. The Company’s unbilled sales as at end of September 2018 stood at RM4.7 billion.
Property development sales for 9M 2018 registered a 34% increase from RM671.1 million in 9M 2017 to RM900.5 million, largely from Residensi Solaris Parq in Dutamas, followed by RUMAWIP Kondominium Kiara Kasih in Mont’Kiara and Verdi in Symphony Hills, Cyberjaya. The next 30% was from the Southern region, mainly from Serimbun, Denai Nusantara and Estuari Gardens all in Iskandar Puteri, while the remaining 21% was from International projects mostly Mayfair in Melbourne Australia.
To-date, the Company has launched projects with a total Gross Development Value (“GDV”) of RM740.2 million, of which RM417.2 million are affordable and mid-market products. RUMAWIP Kondominium Kiara Kasih is priced at RM300,000 per unit while Serimbun and the Company’s recent launch, Eugenia in Serene Heights Bangi, both double-storey terrace houses, are priced from RM499,000 and RM570,000 per unit respectively.
Commenting on the financial results, Anwar Syahrin Abdul Ajib, Managing Director/Chief Executive Officer of UEM Sunrise said, “We are finally reaping the benefits of our maiden venture in Australia with the completion of Aurora Melbourne Central’s first separable portion valued at AUD86.8 million. Totalling 21 floors starting from level ten, we have completed 127 residences and 10 office suites. On 10 September 2018, we delivered and received settlement for 120 residences and four office suites; a strong settlement rate of 92% against the total number of units completed, translating into an amount of RM195.6 million as seen in our latest results. We hope to complete another 70 units valued at AUD28.4 million before year-end. The remaining separable portions will be delivered in 2019. Conservatory with total GDV of AUD319.0 million, the first separable portion is expected to commence settlement in December while full settlement is anticipated to complete by 2019”.
Touching on sales contribution, “We are on track to hit our sales target of RM1.2 billion considering as at end of September, our sales is already RM900.5 million. We are also pleased to point out that 30% came from inventories much of which is contributed by the Company’s inventory monetisation efforts the latest being the 50 years of community building campaign, aptly called “C50”, which to-date has generated sales plus bookings totalling RM262.3 million, while 23% were from new project launches; Kondominium Kiara Kasih and Serimbun. The remaining 47% was from our other ongoing projects”.
Remarking on new project launches, “On 17 October, we launched Residensi Astrea, a 36-floor high rise, low density residential condominium with 240 units sized between 1,364 and 1,859 square feet in Mont’Kiara valued at RM323.0 million. Hoping to replicate the success of our RM764.5 million Residensi Solaris Parq which today has a confirmed take-up of 70%, the take-up including bookings for Residensi Astrea to-date is already 51%. Another new launch is the fifth phase of Serene Heights Bangi, Eugenia with GDV of RM62.5 million launched on 26 October 2018. Eugenia features 84 double storey terrace homes with built-ups between 2,081 and 2,858 square feet. Judging from the successful performance of Serene Heights Bangi’s previous phases, we are confident that Eugenia will also enjoy the same success. Others which we plan to launch before the year ends include a new residential development in Gerbang Nusajaya called Aspira Park Homes with GDV of RM95.3 million and a commercial project featuring two to three storey shop offices currently known as Parcel i6 fronting the Southern Industrial Logistics Clusters where Phase 1 has an estimated GDV of RM25.0 million”.
He added, “We are also delighted to share that Hyatt House Kuala Lumpur, the first in Southeast Asia, will be opening its doors on 1 December in Arcoris Mont’Kiara. The hotel has 299 rooms and offers extended stays in a casual home-style comfort allowing guests to experience the comfort of homes but with services and facilities befitting a four-star hotel. Each room is equipped with a living room, kitchen and bedroom to cater to extended staying guests. As the concept of ‘extended stay hotel’ is fairly new, we look forward for Hyatt House Kuala Lumpur to make its mark in Mont’Kiara”.
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