UEM Sunrise eyes 50% take-up rate for third project in Melbourne by year-end

UALA LUMPUR (July 21): Property developer UEM Sunrise Bhd has launched its third development in Melbourne, Australia — a luxury residential project with a gross development value (GDV) of RM1.1 billion.

Dubbed Mayfair, it features 158 high-end apartments located on Melbourne's premier boulevard, 412 St Kilda Road, and will be different from the company's two previous projects there.

"This is targeting a different market altogether. We're looking at empty nesters, those who have made it and feel that they don't need to live in a big mansion but wants to live somewhere closer to town in an ultra-luxurious development and address," UEM Sunrise managing director and chief executive officer Anwar Syahrin Abdul Ajib told a media conference today.

The company is expecting a 50% take-up rate for the new project by year-end, Anwar added, noting that it is targeting Australian citizens, as well expatriates with permanent resident status there.

Touted as the new "tower of power" in the area, Anwar said construction works on Mayfair will commence in the second quarter of 2018, with completion by the second quarter of 2021.

UEM Sunrise chief operating officer Raymond Cheah said the new project is a collaboration between UEM Sunrise and architectural firm Zaha Hadid Architects and assisted by Australian-based Elenberg Fraser.

"We wanted to design something that is not only for now, but to pass on to future generations and potentially, we hope that it would be a Unesco Heritage site 150 years from now. Ultimately, Zaha Hadid won us over as it encapsulates our vision and our aspiration," he said, noting that Zaha Hadid won the design competition over the likes of Foster and Partner, UNStudio and Cox Architecture.

To date, UEM Sunrise's Aurora Melbourne Central residential project has been fully taken up. It is currently at 30% construction progress, slated for completion by the end of next year.

The company has sold 93% of its second Australian project called Conservatory, which features a 42-storey tower housing 446 apartments. Construction has reached 28%, with full completion by early 2019.

Anwar said projects in Australia accounted for 23% of UEM Sunrise's property development revenue in the first quarter ended March 31, 2017.

"We have invested RM410 million worth of land (in Melbourne), and that has given us close to RM5 billion worth of GDV. We are now looking around for more opportunities. Raymond (Cheah) has been busy travelling and looking for more sites (to develop) in Melbourne, as well as Sydney.

"If the numbers are right and returns are there, then we will seriously look into that," he added.

Apart from Australia, UEM Sunrise has two other overseas projects — a 4.8-acre mixed project in Vancouver, Canada, and a 30-acre joint venture beachfront mixed development in Durban, South Africa.

UEM Sunrise shares closed down one sen or 0.81% at RM1.22, with 1.43 million shares done, bringing it a market capitalisation of RM5.54 billion. — theedgemarkets.com

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