UOL to launch freehold Meyer Blue condo in September as H1 net profit falls 3% to S$130.4 million 

PROPERTY and hospitality company UOL Group on Tuesday (Aug 13) reported a net profit of S$130.4 million in the first half of the year, a 3 per cent drop from S$135 million reported in the corresponding period last year. 

Revenue for H1 fell 7 per cent to S$1.27 billion, from S$1.37 billion in H1 2023, as UOL recorded lower contributions from its property development business. 

Still, the group is pressing ahead with a strong pipeline of launches, kicking off with the freehold Meyer Blue condominium, which is targeting to launch its private preview next month.

The upcoming luxury project is a redevelopment of the former Meyer Park en bloc site, which was sold to UOL and its subsidiary Singapore Land Group for S$392.2 million, or S$1,668 per square foot per plot ratio (psf ppr) in February 2023. 

UOL said: “(The) luxury development will benefit from the Government’s Long Island plan that could potentially add around 20km of new coastal and reservoir parks, tripling the length of the existing waterfront along East Coast Park.”

Meyer Blue will have 226 residential units, ranging from two to five-bedroom units and two penthouses, UOL said on Tuesday. 

UOL, SingLand and CapitaLand Development have also begun making plans for the massive mixed-use commercial and residential site at Tampines Avenue 11 which they were awarded in a Government Land Sales tender in July last year. The consortium bought the site for about S$1.21 billion or S$885 psf ppr. 

The upcoming development will be called Parktown Residence and will have 1,195 residential units, UOL said. 

It will have a retail mall, bus interchange, community club and hawker centre and will be directly connected to Tampines North MRT. Parktown Residence is targeting a first-quarter 2025 launch. 

For H1 2025, UOL and SingLand are also aiming to launch a 38-storey luxury condominium on the Orchard Boulevard site they were awarded in February 2024. The joint venture placed the highest bid of S$428.3 million, or S$1,617 psf ppr for the plum 99-year-old leasehold site.

As for the Holland Drive site UOL was awarded in May, UOL plans to launch a high-end residential development in H2 2025, together with joint venture partners CapitaLand Development, SingLand and Kheng Leong. 

The group is “pivoting to a few very prime sites”, Liam Wee Sin, UOL’s group chief executive, said. He noted how the price gap between Core Central Region condominiums and those from other regions has narrowed, presenting the group with a strong value proposition.

UOL is confident that its upcoming Meyer Blue launch “will command strong interest”, given the limited supply of freehold condominiums, Liam said.

The group will continue to target sites with strong locational attributes and in less saturated areas. 

UOL’s net gearing ratio rose to 0.27 as at Jun 30, 2024, from 0.24 as at Dec 31, 2023, as the group borrowed more to fund the acquisition of new residential sites. 

Earnings per share for H1 stood at 15.43, down from 15.99 in the year-ago period. No dividend was declared, unchanged from the previous period. 

Regarding the proposed divestment of Stamford Court, which The Business Times first reported last week, UOL confirmed that the sale and purchase agreement was signed on Aug 12 for S$132 million.

The divestment is part of SingLand’s “long-term portfolio optimisation strategy to unlock value”, and is expected to be completed by Q4. BT understands the purchasers are PGIM Real Estate and Ashish Manchharam’s real estate investment firm Elevate Capital.

The Faber House redevelopment in Orchard Road is now expected to be completed by 2027. In an update on Tuesday, UOL said the 19-storey building, which will have a 200-key hotel, is expected to have sky gardens and a waterfall. 

The group is bullish on its hospitality portfolio, which recorded higher revenue contributions in H1 with the opening of Pan Pacific Orchard in June 2023.

Liam said: “Singapore’s hospitality sector is likely to continue its growth, albeit at a slower pace, with steady recovery in tourist arrivals and limited supply in the next few years.” 

Shares of UOL closed flat at S$5.31 on Tuesday before the release of results.