UEM Sunrise still on ‘buying mode’

UEM Sunrise still on ‘buying mode’
Business & Markets 2013
Written by Jeffrey Tan of theedgemalaysia.com
Thursday, 26 September 2013 18:44

KUALA LUMPUR (Sept 26): UEM SUNRISE BHD [] said today it is still on a ‘buying mode’ to purchase land.

During a half day media familiarisation tour held by the company, managing director/CEO Datuk Wan Abdullah Wan Ibrahim said the property developer is still pursuing land acquisition to achieve its five year growth target.

“We have to grow new businesses and strengthen the non-core property development activities. Apart from these, we also need to address the ‘numbers’,” said Wan Abdullah.

“This is because, as you know, we are the flagship property arm of Khazanah Nasional Bhd. Thus, they have high expectations on us. So, we have to grow the ‘numbers’ by finding new locations.”

Elaborating, CFO Azhar Othman explained that the company had allocated approximately RM250-300 million a year for land acquisition purposes.

He said the amount could be raised depending upon the proposal, as UEM Sunrise possesses a low gearing ratio at 0.3.

“With our low gearing level, we have a lot of room to maneuver considering the industry gearing level stands at 0.7,” said Azhar.

Meanwhile, on the upcoming Budget 2014 next month, Wan Abdullah said that UEM Sunrise would support any government legislation or policies introduced, as long as it improves the industry.

“The government has to monitor and regulate the economy. If it means the government has to implement cooling measures in the property sector due to accelerating property prices, we will support it,” he said, adding:

“We have to survive not just in 2013 or 2014 but even in 2030. We support this move because it is for the long term, which would improve the industry.”

In addition, Wan Abdullah said UEM Sunrise is looking into improving its portfolio of recurring income assets, citing shopping malls among other assets, with target of 20%-35% by 2016 or 2017.