UEM Land plans to expand overseas after 2012

India looks promising and there is massive need for housing, says UEM Land's managing director and chief executive officer

UEM Land Holdings Bhd, a global community builder, will be ready to expand overseas after 2012 when it has a certain number of projects to market.

"That is one of my key performance indicators (KPI). India looks promising. There is massive need for housing," managing director and chief executive officer Datuk Wan Abdullah Wan Ibrahim said in an interview recently.

UEM Land's current projects include development of state administration complexes at Kota Iskandar, Puteri Harbour waterfront, Southern Industrial and Logistics Clusters, Alfiat Healthpark and residences, all in Nusajaya in Johor.

The company has 3,400ha of undeveloped land in Nusajaya, targeted to be developed by 2025.
Wan Abdullah said UEM Land is looking at various means of expansion and diversification of location to boost earnings.

It is in various stages of negotiations to secure land at several identified areas in Kuala Lumpur, Selangor, Penang and Sabah.

The company is also looking at township development and niche projects and expects to announce several of these deals by the end of this year, Wan Abdullah said.

"My current price-to-earnings ratio is 80 times. It is not matching my market capitalisation. That is why we need to embark on identifying new projects elsewhere," he said.

UEM Land recently branched out to Cyberjaya, Selangor, to develop Symphony Hills, a RM1.1 billion high-end housing project.

"With Symphony Hills and its 'Connected Intelligent Community' value proposition, we believe that we are heading in the right direction," he said.

UEM Land has RM250 million to spend after it exercised its rights issue in April, which saw RM970 million being raised. Part of the proceeds was used to repay debt and for working capital.

Wan Abdullah said UEM Land will not raise funds for the next three years. It will borrow from banks for new projects.

The group is still working on its headline KPI to achieve 36 per cent revenue growth year-on-year and 6 per cent return on equity.

For its financial year ended December 31 2009, UEM Land posted a 54 per cent jump in net profit to RM115.6 million on RM403.1 million revenue.

By Business Times