UMLand upbeat on RM1b projects (4561)

Property developer United Malayan Land Bhd (UMLand) is upbeat on its plan to launch over 1,500 units of mixed properties with an estimated gross development value (GDV) of about RM1 billion
this year.

Its group chief executive officer Chia Lui Meng said the projects, both township and niche, were mostly located within Iskandar Malaysia and are expected to enhance the group's earnings for at least the next two years.

Speaking to reporters in a press conference after the group's annual general meeting in Kuala Lumpur today, he said as of May 2012, the group's total sales stood at RM650 million with additional RM260 million unrecognised sales.

He said UMLand's recent launches such as the Somerset Puteri Harbour, Johor and Suasana Bukit Ceylon in Kuala Lumpur, have been enjoying excellent take up rates with more than 80 per cent units sold within four months.

Chia said on average, the group's profit margin stood at 20 per cent to 25 per cent for residential and 30 per cent to 35 per cent for commercial projects.

"Most of our projects are located at the right location. We have also seen foreigners especially Japanese and Singaporean buying our property in Iskandar Malaysia and Nusajaya. This is very encouraging. Eventually you'll see that the market will expand," he added.

Moving forward, Chia said the group is looking for expansion at growth regions such as Johor, Penang, Sabah and the Klang Valley.

Currently, more than 90 per cent of its landbank is located in Johor.

"We have been on an aggressive landbanking mode in the last few years, particularly within Iskandar Malaysia where we see immense economic potential," he said.

The group's current total undeveloped landbank of more than 727.2 hectares (ha) will translate into estimated GDV of RM6.7 billion in the next 6-8 years, Chia said.

"At the moment we're quite preoccupied with our planned projects," he added.

In Iskandar Malaysia, UMland has expanded its landbank in the last few years with the acquisition of five parcels of land for RM390 million with estimated GDV of close to RM3 billion.

Among the prominent landbank are two parcels of land in Puteri Harbour, Nusajaya and 134.5ha of freehold land in the Eastern Corridor of Iskandar Malaysia.

The land will be developed into a logistic cluster supplemented by industrial and commercial development to tap the potential of the upcoming oil and gas hub in nearby Tanjung Langsat and Pengerang.

UMLand has also entered into a collaboration agreement with Iskandar Investment Bhd to explore investment opportunities with a view to acquiring landbank in the business district of Medini, Nusajaya.

Another project in the pipeline is a mixed commercial development comprising a hotel, serviced apartments and retail podium in Johor Baru. -- BERNAMA