UOL Group set to launch Meyer Blue, their newest residential development situated on Meyer Road, scheduled to be unveiled next month in September 2024.
This project is located on a 96,671 sq ft site along Meyer Road in District 15, just a short walk away from the Katong Park MRT Station. The development will feature a total of 226 units, including a variety of two- to five-bedroom options and two luxurious penthouses. UOL Group holds the majority stake of 80% in the residential project, while Singapore Land (SingLand) has the remaining 20% as a joint venture partner.
The announcement coincides with UOL’s report of a 3% decline in net attributable profit for 1HFY2024, amounting to $130.4 million. The company explains that the decrease in profit is due to fair value losses of $12.2 million.
Group revenue declined by 7% year-on-year to $1.27 billion in the first half of FY2024, primarily due to decreased contributions from property development. UOL experienced a significant decrease in revenue from their property development business, with a 23% year-on-year decline. Their revenue dropped from $676.3 million in 1HFY2023 to $521.8 million in 1HFY2024.
The decline in revenue was due to a decrease in income from recently finished or almost finished projects. For example, Clavon, a residential project with 640 units situated along Clementi Avenue 1, and Avenue South Residence, a residential development with 1,074 units along Silat Avenue, which received its Temporary Occupation Permit (TOP) in July 2023.
Nevertheless, the decrease in revenue was balanced out by the income generated from sales at ongoing projects like Watten House and Pinetree Hill. According to the latest update, Watten House has successfully sold 147 out of 180 units since its launch in November 2023. This represents an impressive sales rate of 82% as of June 30. Meanwhile, Pinetree Hill has sold 237 units (46%) out of its 530 units since its launch in July 2023. UOL Group holds a significant stake of 90% in both projects.
The group’s hotel operations saw a significant 11% year-on-year increase in revenue, reaching $377.6 million in the first half of FY2024, compared to $341.5 million in the same period of FY2023. In the first half of FY2024, hotel operations accounted for approximately 30% of the group’s total revenue.
UOL credits the growth to the recovery in the hospitality sector. The occupancy levels in UOL’s Singapore-based assets saw a significant increase, going from 66% in 1HFY2023 to 76% in 1HFY2024. This growth includes services suits and hotels that are partially owned by UOL. Over the same period, the group’s average Revenue Per Available Room (RevPAR) experienced a significant growth of approximately 40.6%, increasing from $212 to $298.
The group’s other hotels in the Asia Pacific and the United Kingdom also experienced a steady increase in occupancy and RevPAR. The group’s hospitality assets in these areas experienced an increase in average occupancy from 59% to 63% and an average RevPAR growth from $89 to $95 in 1HFY2024.
On the other hand, the group’s assets in Oceania experienced a slight decrease in occupancy rates year-on-year, going from 68% in 1HFY2023 to 64% in 1HFY2024. This was primarily due to ongoing renovations at Pan Pacific Perth, which kept the average RevPAR unchanged.
Revenue from the group’s property investments increased by 8% in the first half of 2024, reaching $271.3 million. This growth can be attributed to the improved performance of Singapore commercial properties, the Pan Pacific Serviced Suites in Kuala Lumpur, and the newly opened PARKROYAL Serviced Suites in Jakarta, which began operations in January 2024.
Upcoming projects by UOL
In addition to Meyer Blue, UOL has a range of residential projects in its pipeline, including ParkTown Residence, which is part of a mixed-use development on Tampines Avenue 11. The project is a collaboration between a UOL-SingLand consortium and CapitaLand Development, with each party having an equal stake. The partners secured the site through a Government Land Sale (GLS) tender in July of last year for $1.206 billion, or $885 psf per plot ratio (psf ppr).
As reported by UOL, the necessary permissions have been acquired to construct 1,195 residential units at the location. These units will vary in size, ranging from one to five bedrooms. ParkTown Residences is scheduled to be launched in the first quarter of 2025.
UOL has exciting plans for Orchard Boulevard GLS, where they will be developing a stunning 38-storey luxury residential development. This prime site was awarded to them in February for a significant sum of $428.3 million, which translates to $1,617 per square foot per plot ratio. The site is zoned for residential use with commercial at the first storey and can accommodate a commercial gross floor area of up to 5,382 sq ft. The project is a joint venture between UOL and SingLand and is scheduled to launch in the first half of 2025.
Meanwhile, UOL has announced that the GLS site at Holland Drive, which it acquired in May for $805.4 million, will be transformed into a luxurious residential development. Consisting of two 38-storey towers, there will be approximately 665 apartments. This project is a joint venture between UOL, CapitaLand Development, SingLand, and Kheng Leong. It is set to launch in the second half of 2025.
