What new developments are priorities for UEM Land?
IBRAHIM: Our priorities are rolling out our land bank that is known as Gerbang Nusajaya. This is a 4,500-acre piece of land that is situated in Nusajaya. We have also made other announcements recently. Among these is our joint venture with Ascendas, where we will be developing a tech park for Small and Medium Enterprises (SMEs). The second one will be a motorsport city. We are participating in a joint venture with a high-value individual from Singapore. We intend to build a test track in the area. Motorsport industries will be clamoring to be located there. We also recently announced an ASEAN mall, where manufacturers from all over China and the ASEAN region will be displaying their products. Merchants and customers will be converging here, rather than going elsewhere. These are our priorities at the moment. In the central region, we have many new projects. The main one is a 500-acre piece of land that is just outside of Kuala Lumpur. This will be in the market during the second half of this year. We are working on more high-rise projects in Kuala Lumpur, including the Angkasa Raya project in Kuala Lumpur. There are a few other condominiums in the works as well.
What is the overall Gross Development Value (GDV) of the Nusajaya project?
IBRAHIM: The total GDV of projects in Nusajaya is very large. The GDV of Nusajaya is about RM100bn ($33bn). I would rather talk about Gross Development Cost (GDC), which is about RM55bn ($18bn) over the next ten years. This is the size of the projects we are working on. We have very large financial targets. We have a Compound Annual Growth Rate (CAGR) of 28% over the next five years. Analysts will be able to calculate what this will be in five years. UEM Land is the property arm of Khazanah, which is our Sovereign Wealth Fund. We have aspirations to be a regional player. We are not only focused on Nusajaya and the central region. We are exploring outside of Malaysia. We have a project in Vancouver, Canada, which is sold out. It is worth about RM1.1bn ($362m). We have land in Durban, South Africa as well. We are excited about India, which we believe has many opportunities. We are also exploring areas in Jakarta. Nusajaya is a regional city that is going to be the first of its kind in this part of the world. 2012 was a very big year for us. It will be the tipping point for us. On Wikipedia, they define the tipping point as when a slow reversible change becomes irreversible. We knew 2012 would be a great year many years ago. Many initiatives that we have been undertaking with our partners came to mature in 2012, including theme parks, universities, and hotels. Everything that comes after 2012 will be very exciting. As I mentioned earlier, we have announced Gerbang Nusajaya, and there will be more to come.
Are you happy with the financial performance of the company? What are your growth projections for the future?
IBRAHIM: Our performance for 2011 and 2012 was right on target. We have not yet announced our final quarter for 2012. In terms of revenue, we might not achieve our targets, but we believe the bottom line will be achieved. We are still closing accounts, and it looks like we have done well. The bar for the future is rising. We are accepting new challenges. My team is young and resourceful. In 2011, we acquired Sunrise Bhd., which has a very dynamic set of human resources. We are eager to enter into the field of high-rise development. We were not experts in that area before the acquisition. We are now a complete developer, but we have issues that we need to address. As a developer, we need to increase our contribution from recurring income, because property development is closely attached to economic cycles. When there are downturns, we need to be able to put food on the table. Enhancing income is very important. We need to address this quickly. Moving forward to 2017, our projections are good. We have a lot of work to do. We need to make acquisitions of land banks, and possibly even companies.
How have investors reacted to the transformation of UEM Land in recent years?
IBRAHIM: We go on equity road shows several times a year. Our message to investors has always been consistent. We have always delivered on our promises. People are starting to recognize this. This is reflected in our stock prices. UEM Land has proven its capability during the last two years. Investors should be excited about our prospects in the years to come. Our portfolio of projects is very diversified, and it consists of both high and low-end projects, in many different geographic locations. In terms of market capitalization, we are the biggest property developer in Malaysia. We also may be first in Malaysia in terms of profits. I think we have a good chance of achieving the highest profits in 2012. UEM Land is a trusted company. We are an old company, but we have gone through a series of transformations. We are going through changes, and we are always on the move. We have very big aspirations. We like what we are seeing with our neighboring country, Singapore. Temasek, Singapore’s Sovereign Wealth Fund, has CapitaLand as their champion. We certainly want to be the champion for Khazanah. I believe that we will get there, sooner rather than later.
The total GDV of projects in Nusajaya is very large. The GDV of Nusajaya is about RM100bn ($33bn). I would rather talk about Gross Development Cost (GDC), which is about RM55bn ($18bn) over the next ten years. This is the size of the projects we are working on. We have very large financial targets.