Sunrise poised for RM2bil sales

Sunrise poised for RM2bil sales
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Unbilled sales largely from 10@Mont’ Kiara and Solaris Dutamas

By C. S. TAN

PETALING JAYA: Property developer Sunrise Bhd is building up one of the biggest reserves of unbilled sales in the country.

The company's unbilled sales rose to RM1.3bil as at end-June from RM1.1bil at end-December and RM720mil at end-June last year.

The larger contributions to these unbilled sales came from its 10@Mont' Kiara (MK10) condominium and Solaris Dutamas commercial projects, with unbilled sales of more than RM500mil each, analysts said.

Unbilled sales are similar to order books of construction companies in that both refer to sales secured from customers but not booked as revenue in the profit and loss account yet.

Typically, unbilled sales are booked as sales revenue as construction of the project progresses.

»RM100mil per acre has been achieved with our recent launches« DATUK MICHAEL YAM
Sunrise's unbilled sales could rise to RM2bil this year if the upcoming marketing launch of 11@Mont' Kiara (MK11) was successful, analysts said.

Sunrise managing director Datuk Michael Yam told StarBiz recently that the company would launch MK11 before the end of the year. The selling price for MK11 had yet to be determined.

“Costing, especially construction costs, is being finalised but the selling price will be in line with current market prices in the Mont' Kiara and Hartamas area.

“In tandem with the bullish sentiment and positive factors, particularly for prime high-end residential properties, registration has been very good, not only among our repeat customers but also from Singaporean prospects,” he added.

Analysts said they understood MK11 would be a condominium comprising only 338 units but the project value would be high as the average unit would be priced at about RM720 psf, and for a 2,700 sq ft unit, the price tag would be RM1.9mil.

Yam said that MK11, which would stand on 6.7 acres, was estimated to have a gross development value (GDV) exceeding RM650mil.

Those were interesting numbers, analysts said, because it showed that Sunrise had reached a stage in which it could realise a GDV or total sales of about RM100mil an acre.

Yam confirmed that rate of GDV. “It depends on the location, type or mix of development and price point. In general, RM100mil per acre has been achieved with our recent launches,” he said.

That is a high level of added value because, in contrast, a township developer would require 50 acres or more in a good location to produce a GDV of RM100mil.

Sunrise developed Mont' Kiara into an exclusive area that has become synonymous with luxurious condominiums. “We still have 85 acres undeveloped in the area,” Yam said.

Noting that, analysts believe if the company continues to achieve a GDV of RM100mil an acre, the rest of its land-bank offered the potential of a GDV totalling RM8.5bil.

That could increase further if the market for luxurious properties retains buoyancy.

If Sunrise launches MK11 at an average RM720 psf, that would not even set a record in the area, although it is a rich price.

The record still stands in the Sunway Palazzio condominium that was priced at RM846 psf. That is being developed by Sunway City Bhd in the Sri Hartamas suburbs that are adjacent to Mont' Kiara.

Aseambankers said in a note that Sunrise had four new property projects that would be launched in its current financial year ending June 30, 2008.

These are MK11, MK20, MK28 and Residence 2 bungalows and, together, the GDV would be about RM2bil.