UEM Sunrise (UEMS), announced that it has acquired about 9.1 acres (3.7 ha) of freehold land from Kwasa Properties Sdn Bhd, a wholly-owned subsidiary of Employees Provident Fund Board (EPF) for RM155m. The subject land, we understand, will be developed as a mixed development with estimated total Gross Development Value (GDV) of RM1.1bn and is targeted to launch in 2025. The land cost appears to be fair at about 14% of the estimated GDV and could add to one of its fast turnaround projects in the Klang Valley. Pending more clarity, we keep our earnings estimates unchanged for now. To recap, UEMS has set sales target of RM1.5bn for FY23, and aims to launch projects worth RM2.5bn during the year. Elsewhere, unbilled sales as at 1QFY23 stood at RM1.7bn (from RM1.8bn in 4QFY22). All told, we maintain our Neutral call with TP unchanged at 33sen.

• New landbank has estimated GDV of RM1.1bn. The freehold land is said to be adjacent to the Damansara-Puchong Expressway (LDP), in the prime location of Kelana Jaya. It will be developed into a mixed use development featuring residential and retail components, to be categorised in the NEST Series under UEM Sunrise’s Happy+ product series, a product branding initiative launched in February 2023 offering homebuyers the most ideal homes that cater to their varying lifestyles and life-stage needs. We estimate, based on plot ratio of 4x (with 70% efficiency), that the average selling will be about RM1000psf, comparable to the nearby projects launched in recent months.

Source: PublicInvest Research - 7 Jun 2023