UOL Group suffers $82.1 mil loss in 1H2020

By Valerie Kor / EdgeProp Singapore | August 17, 2020 2:19 PM SGT
Clavon UOL - EDGEPROP SINGAPORE
The artist impression of Clavon, an upcoming 640-unit residential project by UOL (UOL Group)
SINGAPORE (EDGEPROP) - Listed developer UOL Group has reported a loss of $82.1 million due to “fair value losses on its investment properties, including retail malls and serviced suites, which were severely affected by Covid-19”, according to a press release dated Aug 13.
Property development remains the largest contributor to the group’s revenue at 42% in 1H2020. The Tre Ver at Potong Pasir, launched in August 2018, is 94.5% sold. Amber 45, which was launched in 2Q2018, is 87.1% sold.
Avenue South Residence, launched in August last year, is 47% sold, whereas 56-unit luxury project Meyer House is 12.5% sold.
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UOL also announced Clavon, an upcoming residential launch in 4Q2020. A 80:20 joint venture between UOL and UIC comprising 640 units, it will be built on the Clementi Avenue 1 government land sales (GLS) site acquired in July last year for $491 million or $788 psf per plot ratio.
The developer has also been awarded a GLS site near Canberra MRT Station in March for $270.2 million or $650 psf ppr. It is a joint venture between UOL, UIC and Kheng Leong, with a total gross floor area of 38,593 sq m (415,412 sq ft), which will yield an estimate of 448 residential units. It is targeted to be launched in 2021.
Property investments contribute 26% of total revenue in 1H2020, up from 22% in 1H2019. Occupancy rates for office properties remain strong at 94.5% for Singapore’s market, while retail properties see high committed occupancy at 94.4% in 1H2020.
On the other hand, hotel operations contributed 15% in 1H2020, down from 25% in 1H2019. UOL’s hotel operations comprise the Pan Pacific brand, Parkroyal and Parkroyal Collection. There was a drop in contribution due to travel restrictions and the closure of Parkroyal Collection Marina Bay and Parkroyal KL for refurbishment works. Pan Pacific Suzhou was also divested in December last year. Parkroyal Collection Marina Bay, comprising 575 keys, is expected to complete refurbishment in 1H2021.
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Due to higher borrowings for the acquisition of the residential site at Canberra Drive and the development of Clavon at Clementi Avenue 1, UOL Group’s net debt to equity ratio is at 0.32 as at June 30, up from 0.30 as at Dec 31, 2019.
Check out the latest listings near Amber 45, The Tre Ver, Avenue South Residence and Meyer House
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