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Creating Progressive Communities

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Creating Progressive Communities Headline Creating progressive communities MediaTitle The Edge Date 20 Oct 2014 Color Full Color Section City & Country Circulation 22,244 Page No CC34,35 Readership 66,732 Language English ArticleSize 1486 cm² Journalist E Jacqui Chan AdValue RM 25,586 Frequency Weekly PR Value RM 76,758 Creating progressive communities BY E J A C Q UI CHAN Sunway Bhd takes number and a property­construction collabora­ construction and property develop­ ment to investment and real estate one spot in The Edge Top tion. Describing Sunway as a 'master Property Developers Awards community builder', Cheah believes investment trusts (REIT). This strong this year, for the first time. It Sarena Cheah: It's been an interest­ foundation enables us to do a diverse also won the Best in Qualita­ ing period, with [Bank Negara intro­ yet integrated range of businesses. tive Attributes Award. ducing] cooling measures due to the We're seeking landbank on which Despite a slowdown in the proper­ overall concern over rising household to build more flagship towns and com­ ty market, Sunway has had a strong debt, but it's been quite a good year for munities, and complement these with 2013, posting a net profit of RM1.50 Sunway due to our strong foundation standalone projects. New and ongoing billion for its financial year ended and our people. All three of our business infrastructure projects [by the govern­ Dec 31,2013, an impressive increase regions (central,north,south) achieved ment] will open up new locations/That's from the RM438.83 million posted in something in the tougher business something to explore as well. the previous financial year. environment. The central region had In every region, we want to leave a Sunway's first­half financial year average sales figures of close to 80% mark in the communities we are build­ 2014 ended June 30, net profit grew for launches. In Ipoh, our bungalows ing. There will be a flagship property by 9.82% to RM286.52 million from Lakeside Mansions achieved a bench­ project each in Penang and in Johor,to RM260.9 million a year ago on the mark price of close to RM4 million. In fuel our growth in this segment. back of RM2.23 billion revenue. Sunway Iskandar, Johor, we sold out our Internally, because of the impend­ The company recorded sales of maiden launch of Citrine office suites. ing implementation of GST, we have to be more lean and efficient. Most RM628 million in iH20l4,an increase Ong Pang Yen: Since Cheah and I developers will be affected by the of 28% y­o­y, with unbilled sales of took over as joint managing direc­ rising cost of construction. It's key RM2.4 billion. This puts Sunway on tors more than a year ago, we have that we drive efficiency. track to achieve its sales target of fine­tuned the property­construction RM1.8 billion this financial year end­ (prop­con) collaboration model and Ong: In the long run, our focus is to ing Dec 31,2014. successfully implemented the 'three differentiate ourselves in the market Its launches in the past 12 months gates and two audits' system to deliv­ to keep ahead of the competition. have done well. The Citrine office er customer­centric, quality products We've partnered with Mitsui Fudos­ suites, in the 1,800­acre Sunway and to ensure minimum wastage. an, the number one quality developer Iskandar development in Johor,have The 'three gates' relate to a design in Japan, from whom we can learn sold out despite declining buyer sen­ process not unlike that of Mitsui Fu­ a lot. For innovation and creativity, timent for the Iskandar region due dosan Co Ltd, one of Japan's leading we have tied­up with Japan's Daiwa to concerns about oversupply. Citrine property developers. Design efficiency House Industry Co Ltd to build pre­ has a gross development value of ensures we can meet the increasing fabricated (prefab) homes. RM73 million, while Sunway Iskandar requirements of ever­more demand­ The advantage of prefab homes is has a GDV of RM30 billion. ing customers. currently not great because labour is Sunway has 3,400 acres of unde­ Since January this year, we have still cheap,but their benefits will show veloped landbank with an estimated embarked on two quality audits. One in the long run.Given a build­then­sell GDV of RM50 billion. Sixty­one per­ audit benchmarks quality standards business model, the prefab system is cent of its landbank is in Johor, 21% such as Singapore's Construction Qual­ the best because we can deliver homes in the Klang Valley, 7% in Penang, 4% ity Assessment System (Conquas); the in six months. It will ease our holding in Singapore and 3% in China. other audit is on safety. We are also ISO cost and fit in nicely with the country's Sunway also has a property invest­ 14000 certified.So,the 'three gates, two future housing policies. Innovation in ment portfolio. Its most recent comple­ the use of alternative materials and tion is the 600,000 sq ft The Pinnacle audits' system takes a leaf from The in design can lower costs, the savings in Sunway Resort City, which is pro­ Edge Top Property Developers Awards' from which are passed on to buyers. jected to be 80% tenanted by year­end. five criteria. In the pipeline are the RM500 million Muni­ iout'i's have > ept>dec! Sunway Pyramid 3 hotel and mall siowoi saies ;n slit" cur! en' i­v­.i extension and the RM1.6 billion Sun­ Cheah: One very important priority is iui'Tiii.' Has ran way Velocity shopping mall in Cheras, to get the company Goods and Services ! rihuU .ig jtc: ■ among others.Both developments are Tax (GST)­ready ahead of its implemen­ fnriiKi"! scheduled to be completed next year. tation next year. Cheah: The environment is tough but Joint managing directors of Sunway Sunway has built a very strong our products have done well overall. Bhd's property division, Sarena Cheah brand as a master community builder The locations and integration of our and Ong Pang Yen, tell The Edge that the to differentiate itself in an increasing­ products make them attractive to con­ company is a unique developer with a ly crowded market. We have different sumers; community and infrastructure 'Build, Own, Manage' business model types of expertise in our group, from play a role in the success of our devel­ Headline Creating progressive communities MediaTitle The Edge Date 20 Oct 2014 Color Full Color Section City & Country Circulation 22,244 Page No CC34,35 Readership 66,732 Language English ArticleSize 1486 cm² Journalist E Jacqui Chan AdValue RM 25,586 Frequency Weekly PR Value RM 76,758 opments. People are comforted to know mercial precincts. This will enable cember last year. We're also building what they bought has more to offer us to be self­sustaining. The next a hospital in Seberang Jaya where the than just a product. Sunway Geo, from big thing could be recycling waste Sunway Carnival Mall and Sunway example,hasdone very well [because] it from the township. We already in­ Hotel Seberang Jaya are located.These will have the elevated bus rapid transit corporate passive green design into will complete, integrate and enhance our architecture, and now want to (BRT) service and the commercial com­ the two developments. ponents of Sunway Resort City (where it take sustainability to the next level. Ipoh will be exciting as we will is located), such as hospitals, shopping Ong: It's a very competitive market launch an outlet mall, and superlink centre and educational institutions, but the concept of livability is seep­ and courtyard homes. among others. Our customers buy into ing through to people.The property As for Johor, we'll be making some a product in a growing location. market can go up and down; what's announcements soon. With our range of expertise, it only important is how we differentiate We'll be launching something in makes sense for us to build more com­ ourselves — and that people see value Mont'Kiara,and continue developing munities, which provide the holistic in it. So even if the market is down, our projects in Ampang and Serdang. experience of home that people want, hopefully our market share rises be­ VV'U.'i 'J­:? y: ji 'i hi­ where the family can grow together. cause people appreciate the value in i.'S iiU1 jpc • ; y O !«'•< r m r' i } i: s ■ As a developer, we grow together with our differentiation. 1 > eai itOd U* VvV i­ s I.1 *r •'' V ;v the consumer and the community. ciddi css them.­1 The group sales target for this year Cheah: The National Property Infor­ is RM1.8 billion in revenue. We are con­ mation Centre report of 2011 to 2012 structing investment properties worth Cheah: No, we're not there yet. The shows that the volume of transactions another RM3 billion in GDV. We have contribution from overseas business has declined while its value has in­ the best of both worlds: we sell products, to the property segment is very small. creased.The new supply of homes in and we build products to serve the con­ Singapore and China are a start the residential segment has shrunk; sumer. Investment products have the and, for now, our focus, until we gain the property market closely tracks the potential to be put into a REIT. When a better foothold there.Opportunities level of consumer confidence around you add it all up, Sunway commands will always present themselves.
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