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UEM Sunrise Reports Its Financial Performance For The 9 Months Ended 30 September 2014

KUALA LUMPUR, 26 November 2014 – UEM Sunrise Berhad (“UEM Sunrise” or the “Company”) today announced its financial results for the nine months ended 30 September 2014 where total revenue recorded for the period stood at RM1,320.3 million as compared to RM1,852.2 million reported for the corresponding period in 2013, the latter of which was supported by two major land sale transactions in Puteri Harbour amounting to RM582.8 million.

Revenue from property development activities increased by 12% from RM1,058.5 million in 2013 to RM1,182.2 million for the period under review, 60% of which was contributed by projects in Nusajaya namely East Ledang, Imperia and Nusa Bayu. The remaining 40% is from Klang Valley, the likes of Symphony Hills and Summer Suites, and from Quintet, UEM Sunrise’s mixed residential and commercial development located in Richmond, Vancouver, Canada.

In line with the lower revenue recorded, UEM Sunrise’s profit after tax and minority interest for the nine month period stood at RM207.5 million compared to RM501.2 million for the year before.

Total property sales for the nine months up to 30 September 2014 stood at RM641.4 million largely contributed by projects outside of Nusajaya namely Residensi 22 in Mont’Kiara followed by Arcoris Mont’Kiara, Almas in Puteri Harbour and Symphony Hills in Cyberjaya while unrecognised revenue remains strong at RM2.8 billion.

Commenting on UEM Sunrise’s performance, its Managing Director/Chief Executive Officer, Anwar Syahrin Abdul Ajib acknowledges the challenging property market outlook, “Nusajaya is affected by the overall sentiment of Iskandar Malaysia. The near-term prospects of Iskandar Malaysia remains challenging especially for the high rise residential segment due to concerns of potential oversupply. In light of this, we made a conscious decision to defer the launches of our planned high-end high rise units in Nusajaya over the next one year. Nevertheless, we still see good demand for affordable and mid-range homes especially in the landed segment and will continue to launch such products. We have already launched 351 units of landed affordable homes in Nusa Bayu in March this year, a GDV of RM50.0 million and on 9 November, initiated a groundbreaking ceremony for 1,109 units of affordable homes in Denai Nusantara, a project with a GDV of RM188.0 million, targeted for launching in 1Q 2015. We remain positive on the medium to long-term outlook for Nusajaya especially once the High Speed Rail linking Klang Valley to Singapore is completed as this will be another key catalyst that will boost Nusajaya’s future growth.”

Projects in the Klang Valley continued to attract interest, “We launched our Residensi 22, a prestigious and majestic tower condominium with two blocks in Mont’Kiara. Targeted for those who want the convenience of urban lifestyle and security, Residensi 22 was well-received by the market with take up rate close to 75% as at end October. Aligned with the market’s appetite for lifestyle products, we have also seen encouraging interest for our Verdi eco-dominiums in Symphony Hills, which comes equipped with smart homes features the likes of unified home network, interactive community services portal, info kiosk and web access home control. Our joint venture project with Sime Darby Property Berhad, Radia Bukit Jelutong, has been seeing strong sales. The two blocks of serviced residences that we launched in early 2014 has enjoyed a take up rate of about 90% as at end October 2014”.

He further added that moving forward, UEM Sunrise aims to focus more on creating unique lifestyle offerings to match the needs of the various market segments considering that UEM Sunrise is able to cater and develop a diverse range of products.

Anwar Syahrin further shared his delight on the Company’s maiden venture in Melbourne, Australia, “Aurora Melbourne Central was previewed in Kuala Lumpur on 23 October 2014. The 92-storey skyscraper, comprising retail, commercial office, serviced apartment/hotel and residential units has a GDV of approximately AUD$770 million and enjoys direct underground connection to Melbourne’s rail network via the Melbourne Central Station. The project is also directly linked to the CBD’s largest continuous retail precinct. 941 residential units were launched comprising a mix of 1-bedroom, 2-bedroom and 3-bedroom with sizes ranging from 43 sqm to 92 sqm priced within a range of AUD$428,500 to AUD$1.19 million per unit. We have received overwhelming response with 895 units (95%) booked within two weeks of our exclusive worldwide preview, with total potential sales value of approximately AUD$508.0 million”.

UEM Sunrise is also pleased to note that Marina One Residences, a mixed development project co-managed by UEM Sunrise has done very well given the current soft market conditions in Singapore. The project jointly developed by Temasek Holdings and Khazanah Nasional Berhad is the latest launched in the market following the success of its maiden project, Duo Residences.

UEM Sunrise was also honoured with several notable awards during the recent FIABCI Malaysia Property Award 2014 under the Retail Category for Publika and Residential (High Rise) Category for 28 Mont’Kiara as well as ranked 4th Top Property Developer at The Edge Property Excellence Awards 2014. It also won a Merit Award, The Edge – PEPS Value Creation Excellence Award (Residential Category) for the Tranquillity Park at East Ledang, Nusajaya.