Tag Archives: UOL

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 and Sim Lian post weaker property development results

Property developer UOL Group has announced that revenue was 59 percent down at S$297.7 million in the first quarter ended 31 March 2012, attributed to a 75 percent revenue drop in its property development segment to S$153.2 million.

Net attributable profit for the quarter also fell 63 percent to S$84 million, from S$230 million over the same period last year. This was mainly due to a 52 percent fall in share of profits from associated companies after the completion of Nassim Park Residences (pictured) in Q1 last year.

“Our first quarter results reflected a slowdown in new launches since last year and the completion of several projects,” said Gwee Lian Kheng, Group Chief Executive of UOL.

Meanwhile, revenue from hotel ownership and operations saw a 22 percent increase to S$96.8 million while revenue from property investments climbed seven percent to S$41.9 million. The company’s expenses also inched up two percent to S$47 million due to a 15 percent increase in administrative expenses to S$16.3 million.

UOL’s commercial properties continued to be well received, with all its major retail and office buildings recording an occupancy rate of 95 percent.

Looking ahead, Gwee said the company expects demand from new homes in the mass market segment to remain stable, underpinned by low interest rates and high liquidity. It will also replenish its Singapore landbank and remain selective when making overseas acquisitions.

Meanwhile, Sim Lian Group, another local developer, reported a 56 percent drop in profit before income tax to S$29.4 million in the third quarter of FY2012. This was mainly due to a 52 percent decline in revenue, underpinned by lower contributions from its property development division, particularly from the Parc Lumiere project.

External contruction projects contributed S$45.6 million to the company’s revenue, up 94 percent from last year’s S$23.5 million.

“The higher revenue contribution was mainly due to the higher percentage of completion recorded in 3QFY2012,” it said in a statement.