UEM Sunrise prioritises sustainable growth over quick monetisation of Johor land; rules out data centre development

• UEM Sunrise officer-in-charge and chief financial officer Hafizuddin Sulaiman: “We focus on delivering the right products to our homebuyers at the right time. Internally, we closely analyse market absorption trends across different product categories.”

ISKANDAR PUTERI (Feb 27): Property developer UEM Sunrise Bhd (KL:UEMS) said on Thursday that it is taking a measured approach in utilising its land bank in the Johor region, prioritising sustainable development and product delivery over rapid monetisation.

Speaking to The Edge on the sidelines of an event, UEM Sunrise officer-in-charge and chief financial officer Hafizuddin Sulaiman (pictured) said the group is focused on properties that align with market demand rather than rushing to monetise its 4,271-acre land bank in Gerbang Nusajaya, Johor.

“You have to appreciate the nature of township development. If you cash out too soon, are you truly crystallising the optimal value? Crystallising the optimal value takes time and again, we all know what happened before right, when you had a good ecosystem then suddenly it went away," Hafizuddin said.

His comments come as UEM Sunrise has observed an improvement in Johor’s property sector in terms of sales. However, the group has yet to accelerate its development plans in the region.

“We focus on delivering the right products to our homebuyers at the right time. Internally, we closely analyse market absorption trends across different product categories. We rely on data points and building information management (BIM) to ensure cost efficiency, adherence to specifications and timely project delivery,” Hafizuddin said.

Earlier, UEM Sunrise signed a memorandum of understanding (MOU) with Singapore-listed GuocoLand Ltd to jointly develop some of its land in the Iskandar Puteri area. Further information on the estimated gross development value, exact location of the development project, or other details are yet to be disclosed.

For this year, one of UEM Sunrise’s key projects is the redevelopment of “Subiaco” in Perth, Australia, a site designated for urban renewal by the local government.

“We successfully bid for this project, leveraging our experience in Australia, where we previously built Aurora Tower — the tallest tower with 86 floors in Melbourne. We identified areas in need of gentrification and proposed a compelling design. The final phase of approvals has been signed off, and we plan to launch by June this year,” Hafizuddin shared.

Hafizuddin has been serving as officer-in-charge of UEM Sunrise since December 2024, following the resignation of Sufian Abdullah as chief executive officer, which takes effect tomorrow. However, he declined to share the group’s succession plan.

“My priority is ensuring the continuity of our 2024 delivery programme. It’s all about execution and maintaining UEM Sunrise’s momentum. As the officer-in-charge, my role is to ensure there are no disruptions to our plans,” he said.

No plans for data centre development

The group has ruled out the development of data centres on its remaining land bank, opting instead to focus on integrated townships with residential, commercial and industrial components.

"We have so much land and I hate to use the word 'flippers' but if you notice in the last week or so, there's a lot of companies that typically flip to data centres," Hafizuddin said. 

Notably, Johor has seen rapid growth in data centres with the number expected to reach 28. Nationwide, Malaysia had 18 operational data centres as of December 2024, a figure projected to grow to 81 by 2035.

“Our goal is to enhance land value through sustainable development. Flipping land for quick profit is easy, but our approach is to activate land meaningfully. A township must evolve holistically — residential, industrial and commercial elements must develop together for long-term success,” Hafizuddin explained.

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