UOL to launch new project at Ang Mo Kio Avenue 1 in June
At its FY2021 results briefing on Feb 28, UOL Group reported revenue of $2.6 billion, underpinned by property development which saw a 67% y-o-y increase in revenue to $1.6 billion. Earnings surged to $307.4 million in FY2021, compared with just $13.1 million in the previous year. This was mainly due to fair value and other gains of $73.8 million in FY2021, compared to fair value and other losses of $246.7 million in FY2020, said the listed property group.
Revenue was recognised for UOL’s Singapore residential projects including the 1,074-unit Avenue South Residence, the 729-unit The Tre Ver, the 640-unit Clavon and the developer’s sole new launch last year, namely, the 448-unit The Watergardens
at Canberra. Launched in August 2021, 76% of the project has been taken up, with units averaging $1,451 psf, based on caveats lodged.
Property development sales were also boosted by revenue recognised from The Sky Residences in London, which is part of the One Bishopsgate Plaza integrated development. The Sky Residences is a 160-unit luxury apartment project that was completed last September.
UOL chalked up total sales of 799 residential units in 2021, with $1.53 billion in sales bookings. This is 30.8% higher than the previous year’s $1.17 billion in recorded sales, with 794 units sold.
According to UOL Group CEO Liam Wee Sin, the company achieved a “creditable set of results” despite
the pandemic. “2021 was supposed to be a recovery year but it was not, as it was derailed by the Delta and Omicron strains,” he adds.
UOL has two residential projects in the pipeline for launch, one of which is the 372-unit project at Ang Mo Kio Avenue 1, which is targeted for launch sometime in June this year. The project sits on a 99-year leasehold government land sale site that UOL won with a bid of $381.4 million, or $1,118 psf per plot ratio (psf ppr), last May. The project is jointly developed with Singapore Land Group and Kheng Leong Co in a 60:20:20 joint venture.
The next project in the pipeline is the freehold Watten Estate Condominium on Shelford Road, which UOL and SingLand jointly purchased en bloc for $550.8 million last October.
The purchase price translates to $1,723 psf ppr. The developer intends to build a new residential project with over 200 units, which is expected to be launched in 2023.
Liam’s outlook for 2022 remains “cautiously optimistic”. He expects the new property cooling measures rolled out in December to have an “uneven” impact on various residential projects.
Despite higher condo prices, continued concerns about rising costs and supply chain disruptions led to a compression in developers’ margins, observes Liam. In addition, the outbreak of war in Ukraine could further drive up costs of raw materials and logistics, which could lead to even thinner margins, he cautions. “However, it’s still too early to tell,” he concedes.