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Operations Review

The Malaysian property market continued to grow at a rapid pace in 2011 registering an overwhelming 430,403 transactions valued at RM137.83 billion, a growth of 14.3% and 28.3% respectively against 2010. Malaysia's residential sub-sector continued to drive the property market in 2011, closing the year with house price index rising 9.9%, the fastest increment since 1996.

UMLand delivered profits before tax of RM80.8 million in FY2011, an increase of 8.7 % from RM74.3 million recorded in the preceding year. The Group's balance sheet and liquidity remained strong, with net assets of RM969.1 million at the end of 2011. Township development continued to be the main contributor, Niche Division provided catalyst for growth.

The Group witnessed a series of launches totaling 542 units of residential and commercial units in 2011, up by RM24.6 million from FY2010, with a profit of RM41.1 million.

Bandar Seri Alam continued on its successful trajectory of transformation into the education hub in the Eastern Gate of Iskandar Malaysia with 4 universities, a junior college, an art school, an international school, a Japanese international school and 16 primary, secondary and religious schools. In 2011, UMLand formed a joint venture with with Singapore-based Raffles Campus Pte Ltd to develop Excelsior International School.

As at 31 December 2011, Bandar Seri Alam has a balance of approximately 1,117-acre land for future development, with estimated gross development value(GDV) of RM3 billion.

UMLand's other township located in Iskandar Malaysia, Seri Austin, a 500-acre mixed development in the fast growing Tebrau Corridor has a balance of approximately 180 acres of land for future development with estimated GDV of RM900 million.

Located in Klang Valley is Bandar Seri Putra, UMLand's integrated township covering 898 acres of freehold land. A balance of approximately 190 acres of land remains to be developed with estimated GDV of RM760 million.

The division officially launched an exciting high-end serviced residence, the 310-unit Suasana Bukit Ceylon in Kuala Lumpur during the year under review.

Revenue from the Group's niche division in FY 2011 stood at RM89.8 million and its profit was RM18.4 million, mainly contributed by Suasana Bukit Ceylon.

Another niche project, the 168-unit Somerset Puteri Harbour, a stylish waterfront serviced residence fronting the marina of Puteri Harbour, within Nusajaya, Iskandar Malaysia was launched in February 2012. Riding on the success of Somerset Puteri Harbour, another mixed development project also within Puteri Harbour to be rolled out in the next year is expected to do well.

In the pipeline is a mixed commercial development comprising of hotel, serviced apartments and retail podium at Jalan Wong Ah Fook in Johor Bahru City Centre is expected to be launched in the second half of 2012. With the Johor Bahru City Hall recently having announced their river transformation cum-beautification project proposed by the Johor State Government, the Group expects this project to be well received.

A total of 1,500 units are slated to be launched by the township division in 2012

In the niche division, the proposed mixed development of office, commercial and residential units on a piece of 4.3-acre prime freehold land along Jalan Mayang in the KLCC vicinity is expected to be ready for launch from 2013.

As part of its growth strategy, UMLand will strenghten its position in Iskandar Malaysia. UMLand had in November 2011, completed the acquisition of 333 acres of freehold land in the Eastern Gate of Iskandar Malaysia and is also in the midst of completing the acquisition of a parcel of 629-acre freehold land in Senai-Skudai area for industrial and commercial development. The Group recently entered into a collaboration agreement with Iskandar Investment Berhad with a view of acquiring land bank in the Business District of Medini within Nusajaya.

With its existing land bank and new acquisitions, UMLand has a sizeable landbank and is able to constantly evolve to meet the new and fast-changing operating environment and continue to develop its portfolio.

To read the entire statement, please refer to UMLand's 2011 Annual Report here