In a filing with Bursa Malaysia, the company said it had proposed to buy the freehold Kepong land for RM72.9mil cash.
The stock closed three sen higher at RM1.28 yesterday.
Chief operating officer David Khor told StarBiz that a residential development was being planned for that land and work would commence next year.
“It will be one of several projects about five or six being planned for next year,” he said. No gross development value is available.
UOA is a subsidiary of United Overseas Australia Ltd, which is listed in both Australia and Singapore.
UOA is known for its flagship project comprising 60 acres in what is currently known as Bangsar South, located between Petaling Jaya and Kuala Lumpur.
“We are unable to comment on the share price. However, we are extremely pleased to share that UOA has recorded a gross profit of RM161mil in the first half of 2011.
“This marks an impressive first half-yearly results compared with RM183mil recorded for the full year of 2010,” Khor said.
He said UOA would continue to focus on its core development activities while delivering a sustainable and strong financial performance to shareholders.
“UOA's expertise is in office development although we are also able to do high-rise residential and landed properties,” Khor said.
Close to 90% of its office space of 2.26 million sq ft, divided between 14 blocks and eight subsequent blocks in Bangsar South, have either been rented out or sold, he said.
Khor said residential component contributed about 60% of UOA's revenue in the second quarter.
He said contribution from the residential component was expected to continue to increase. This is based on the company's upcoming developments and potential land acquisitions that would form a solid basis for its growth over the next five to seven years.
CIMB Research said UOA had about 100 acres of undeveloped land with a gross development value (GDV) of RM11bil. Bangsar South has a GDV of RM8bil and will take several years to complete.
The company has completed two high-rise condominium blocks in Bangsar South comprising a total 470 units besides 14 blocks comprising 760,000 sq ft of office space and another subsequent four blocks of 600,000 sq ft.
Khor said besides Bangsar South, UOA had seven other ongoing projects in the Klang Valley that would generate RM2.43bil in GDV. The company will launch another six next year with a GDV of RM1.35bil.
“After 2012, there will be other developments comprising residential and commercial, with GDV totalling RM6.9bil,” he said.
By The Star
Posts
No comments:
Post a Comment