More developers venture overseas

More Malaysian developers are expanding overseas, where project planning and approval process are faster. They also make more money there because of foreign exchange gain, reported the media.

The trend came as Malaysian developers saw their profit margin shrink due to long approval process as well as the higher land and building material costs.

Notably, a consortium comprising Sime Darby Bhd, the Employees Provident Fund and SP Setia Bhd acquired London’s Battersea Power Station in 2012 for £400 million (RM2.1 billion).

Aside from the Battersea project, SP Setia also has two other projects in Melbourne called the Parque and Fulton Lane.

Meanwhile, Mammoth Group plans to build more residential apartments in Melbourne, following the success of its first project, MY80 Silver Skies, while UEM Sunrise Bhd ventured into Canada, Australia and Singapore.

Notably, UEM Sunrise entered the Australian property market in October 2013 when it acquired a 0.4ha site on Mackenzie Street and 0.4ha site on La Trobe Street.

The company secured the planning permit for the project on La Trobe Street a few months after its acquisition.

Dubbed as the Aurora Melbourne Central, the project was recently unveiled and saw over 95 percent of the 941 apartments sold within two weeks.

UEM Sunrise managing director/chief executive officer Anwar Syahrin Abdul Ajib called for a more collaborative approach among stakeholders in order to improve the performance of the real estate industry in Malaysia.

“The planning and approval process is very much driven by the complexities and circumstances surrounding each project. For Aurora Melbourne Central, we have been extremely blessed with a team of talented consultants and a supportive local authority and board.”