Offloading the Parkroyal on Kitchener Road helped UOL’s bottom line
Singapore developer UOL Group’s 2023 attributable profit jumped 44 percent to S$707.7 million ($527 million), boosted by an October hotel disposal.
The profit surge was propelled by a gain of S$442.3 million from the sale of the Parkroyal on Kitchener Road by UOL’s Pan Pacific Hotels division, the SGX-listed company said Tuesday in a release.
Group revenue for the full year fell 16 percent to S$2.68 billion as development revenue slid 39 percent to S$1.21 billion. Revenue from hotel operations rose 38 percent to S$762.8 million as hospitality properties benefited from the global travel rebound.
Among UOL’s development properties, Avenue South Residence, The Tre Ver and Clavon in Singapore and Park Eleven in Shanghai contributed less revenue last year while AMO Residence and The Watergardens at Canberra in Singapore recognised more, the company said.
“Amidst a challenging economic environment and following two rounds of cooling measures, sales in our Singapore residential projects exceeded expectations, especially for Watten House which achieved 64 percent sales booking last year,” said UOL Group CEO Liam Wee Sin. “This reflected strong demand for good products in attractive locations.”
Investments Eke Out Gains
Fair-value gains on UOL’s investment properties plunged 92 percent to S$20.2 million in 2023, with gains recorded for Singapore properties and losses booked for commercial assets in Britain and Australia.
Wee Ee Lim has succeeded his late father as UOL Group chairman
Revenue from property investments rose 2 percent to S$512.5 million on the strength of contributions from commercial assets in Singapore and serviced suites. Losses from associated and joint venture companies stemmed from lower contributions from Meyer House, a luxury condo complex that fully sold out in May 2023, and the closure of Mandarin Oriental Singapore for renovation from March to September of last year.
Group finance expenses shot up 56 percent to S$200.4 million, owing to higher interest rates. UOL’s net gearing ratio stood at 0.24, easing from 0.26 at the end of 2022, on the repayment of bank loans with the proceeds from the S$525 million sale of the Parkroyal on Kitchener Road to Worldwide Hotels, as well as sales of development properties and operating cash flows.
To replenish its development pipeline, UOL last July acquired a 50 percent stake in a mixed retail-residential site at Tampines Avenue 11 in a joint venture with CapitaLand Development, and just last week it was awarded an Orchard Boulevard residential site for S$428.3 million in a government land tender.
“Going forward, we expect demand for freehold residential projects and integrated developments to be healthy,” Liam said.
Scion Assumes Chairmanship
The release of UOL’s annual report follows the death of longtime chairman Wee Cho Yaw earlier this month. Wee, who also served as chairman emeritus of Singapore financial giant UOB, had run UOL since 1973 and helmed the bank controlled by his family since 1974.
UOL on Tuesday announced the elevation of Wee’s son Wee Ee Lim to the chairmanship from his most recent role as deputy chairman, with effect from that day. Wee Ee Lim had succeeded his father as chairman of UOL subsidiary Singapore Land one year ago.
UOL also announced the retirement of chief financial officer Kwa Bing Seng, whose last day on the job will be 31 March. As the company evaluates candidates for his replacement, deputy CFO Siti Aisha Bernice Peng will assume Kwa’s day-to-day duties.
Leave a Reply