Tag Archives: Double Bay Residences

UOL offers to take Pan Pacific Hotels private

UOL Group, the Singapore property developer controlled by billionaire Wee Cho Yaw, plans to take its hotel unit Pan Pacific Hotels Group private.

UOL, which already owns 81.6 per cent of Singapore-based Pan Pacific, is offering to buy the rest of the hotel operator’s shares at S$2.55 apiece, it said yesterday in a statement filed with the Singapore Exchange. This represents a 9-per-cent premium to Thursday’s close.

The proposed buyout, which will cost UOL about S$280 million, comes after shares of Pan Pacific rose almost 30 per cent over the past year, reaching a high of S$2.54 on Feb 27. The stock is trading at 19.7 times earnings, compared with the average multiple of 26.5 for hotel and restaurant operators in Singapore, according to Bloomberg data.

The offer “will provide an exit option for those shareholders who wish to realise their entire investment in the shares but find it difficult to do so as a result of the low trading liquidity of the shares and low free float of the shares”, UOL said.

UOL said it did not plan to change the business of Pan Pacific, which runs more than 30 properties in the Asia-Pacific region and North America, including 13 hotels under the Parkroyal brand.

UOL said the hotel operator had not tapped the markets for funds in 20 years except for a rights offer in 2007, adding that it would not likely need financing.

Trading in Pan Pacific and UOL shares was halted yesterday. Pan Pacific shares closed at S$2.34 on Thursday, giving it a market capitalisation of S$1.4 billion, while UOL ended at S$7.26, giving it a market value of S$5.6 billion after the stock surged 68 per cent in the past year.

Also yesterday, UOL reported net profit fell 15 per cent year-on-year to S$71.7 million in the first quarter ended March 31, mainly due to higher foreign exchange losses and lower contributions from hotel operations, which were affected by the opening costs of Parkroyal on Pickering

Revenue fell 17 per cent to S$247.8 million as the completion of Meadows@Peirce and Double Bay Residences last year and the near completion of Waterbank at Dakota in the second quarter of this year reduced contributions from property development.

Source : Today – 11 May 2013

UOL Q3 profit up 44 per cent

Increase due to gains from Nassim Park Residences, associate UIC

UOL Group’s third-quarter net profit has risen 44 per cent year on year to $105.6 million. Revenue increased 21 per cent to $323.9 million, thanks to progressive recognition of revenue from development properties.

MR GWEE
‘Our profit showed a significant increase, attributed to our timely launches and locking in and controlling of construction costs.’

UOL’s bottom line received a fillip from a tripling in share of profits of associated companies to $48.2 million from $15.1 million for Q3 2008.

This was on the back of higher contributions from the progressive completion of Nassim Park Residences (in which UOL has a half share) and UOL’s 31.9 per cent share of the profit of United Industrial Corporation, which became an associated company this year.

Revenue from property development rose 49 per cent to $203.5 million, accounting for nearly two-thirds of total group revenue. Among the projects that contributed to UOL’s Q3 report card were two new launches this year – Double Bay Residences and Meadows@Peirce, which have sold a total of 937 units to date.

Rental income from investment properties rose 9 per cent on the back of higher occupancy and rental reversions for most of the group’s investment properties. However, revenue from hotel operations fell 13 per cent amid the decline in tourism markets.

UOL group chief executive Gwee Lian Kheng said: ‘Our development profit showed a significant increase, attributed to our timely launches and locking in and controlling of construction costs.’

In the first nine months of 2009, UOL’s net profit rose 60 per cent to $417.2 million. Revenue increased 15 per cent to $734.3 million. Shareholder funds rose 19 per cent to $4.04 billion as at Sept 30, 2009 – on the back of fair-value gains on available-for-sale financial assets, the group’s operating profits for the first nine months of this year, and recognition of negative goodwill and capital reserves arising from the acquisition of additional interest in UIC. Consequently, net tangible asset backing per share rose to $5.11, from $4.22 at end-2008. UOL’s gearing ratio improved to 0.39 from 0.42 over the same period.

UOL’s hotel arm, Pan Pacific Hotels Group (formerly known as Hotel Plaza), posted a 25 per cent year-on-year drop in Q3 net earnings to $10.1 million on a 6 per cent dip in revenue to $72.8 million.

Nine-month net profit slid 39 per cent to almost $27 million. Revenue fell 12 per cent to $205.1 million. Pan Pacific said that it expects the business climate to remain challenging.

In the stock market yesterday, UOL closed unchanged at $3.29 yesterday while Pan Pacific Hotels ended one cent higher at $1.35.

Source : Business Times – 14 Nov 2009