UOL to preview luxury development Meyer Blue in September; reports 3% y-o-y dip in 1HFY2024 earnings

By Nicholas Lam

/ EdgeProp Singapore |

August 13, 2024 9:12 PM SGT

Artists' Impression of Meyer Blue, a 226-unit residential development located on Meyer Road. (Image: UOL Group)

UOL Group is set to unveil Meyer Blue, its latest residential development located on Meyer Road next month. At a briefing for the group’s financial results announcement for 1HFY2024 ended June 30, UOL chief executive Liam Wee Sin stated that private previews for the project will commence in September.

The freehold project sits on a 96,671 sq ft site along Meyer Road in District 15, within walking distance from the Katong Park MRT Station. It will offer 226 units ranging from two- to five-bedroom units and two penthouses. UOL Group has an 80% stake in the residential project, with joint venture partner Singapore Land (SingLand) holding the remaining 20%.

The announcement comes as UOL reported 1HFY2024 net attributable profit of $130.4 million – a 3% decline y-o-y. The company attributes the lower profit to attributable fair value losses of $12.2 million.

Read also: Metro Holdings reports profit of $14.6 mil in FY2024

Group revenue fell 7% y-o-y to $1.27 billion in 1HFY2024, underpinned by lower contributions from property development. UOL saw a 23% y-o-y decline in revenue from their property development business from $676.3 million in 1HFY2023 to $521.8 million in 1HFY2024.

The decline was attributed to a drop in revenue from completed or nearly completed projects such as Clavon, their 640-unit residential project located along Clementi Avenue 1, and Avenue South Residence, a 1,074-unit residential development along Silat Avenue that obtained its Temporary Occupation Permit (TOP) in July 2023.

However, the decline was offset by revenue generated from sales at ongoing projects such as Watten House and Pinetree Hill. As of June 30, Watten House had reported 147 units (82%) out of 180 units sold since its launch in November 2023. Meanwhile, Pinetree Hill had reported 237 units (46%) out of its 530 units sold since its launch in July 2023. UOL Group owns an effective stake of 90% in both projects.

Revenue from the group’s hotel operations increased 11% y-o-y to $377.6 million in 1HFY2024, up from $341.5 million in 1HFY2023. Hotel operations contributed about 30% of the group’s total revenue in 1HFY2024.

UOL attributes the growth to the rebound in the hospitality sector. Including services suits and hotels partially owned by UOL, occupancy levels in their Singapore-based assets grew from 66% in 1HFY2023 to 76% in 1HFY2024. The group’s average Revenue Per Available Room (RevPAR) also grew about 40.6% from $212 in to $298 over the same period.

The group’s other hotels across the Asia Pacific and the United Kingdom also saw moderate growth in occupancy and RevPAR. The group’s hospitality assets in these areas grew their average occupancy from 59% to 63% and their average RevPAR from $89 to $95 in 1HFY2024.

However, occupancy rates in the group’s assets in Oceania dipped slightly y-o-y from 68% in 1HFY2023 to 64% in 1HFY2024 and their average RevPAR remained the same due to ongoing renovations at Pan Pacific Perth.

Revenue from the group’s property investments grew by 8% in 1H2024 to $271.3 million, owing to better performance by Singapore commercial properties, Pan Pacific Serviced Suites Kuala Lumpur, and new contribution from PARKROYAL Serviced Suites Jakarta which opened in January 2024.

Upcoming projects

Aside from Meyer Blue, UOL’s pipeline of residential projects include ParkTown Residence, the residential component of its upcoming mixed-use development on Tampines Avenue 11. The project is a 50:50 joint venture between a UOL-SingLand consortium and CapitaLand Development. The partners were awarded 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).

According to UOL, provision permission has been obtained to develop 1,195 residential units at the site, ranging from one- to five-bedders. ParkTown Residences is targeted for launch in 1Q2025.

At Orchard Boulevard, UOL plans to develop a 38-storey luxury residential development on the GLS site it was awarded in February for $428.3 million ($1,617 psf ppr). The site, which is zoned for residential use with commercial at the first storey, can accommodate a commercial gross floor area of up to 5,382 sq ft. The project is an 80:20 joint venture between UOL and SingLand and is slated to launch in 1H2025.

Meanwhile, UOL says that the GLS site at Holland Drive it acquired in May at $805.4 million ($1,285 psf ppr) will be developed into a high-end residential development. Comprising two 38-storey towers, it will have about 665 apartments. The project is a 35:35:20:10 joint venture between UOL, CapitaLand Development, SingLand and Kheng Leong and is targeted to launch in 2H2025.

UOL also reaffirmed its strategy of enhancing and redeveloping properties within their portfolio such as Singapore Land Tower, a 47-storey building with a nett floor area of about 619,000 sq ft. Its asset enhancement initiative (AEI) works at the building is expected to complete by the end of the year.

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