A ROBUST property market lifted net profits at Singapore Land and its parent, United Industrial Corporation (UIC), in the third quarter.
SingLand said its earnings in the quarter rose 30 per cent to $30.1 million from $23.2 million a year earlier. Revenue was up 27 per cent at $70.5 million.
It attributed the revenue jump for the three months ended Sept 30 to ‘the contribution from the Pan Pacific Singapore Hotel and higher rental income’.
The company acquired full ownership of the hotel in April.
Higher rental rates and improved occupancy lifted its rental income by $8.1 million, although it did not say where this increase came from.
Earnings per share in the third quarter came to 7.3 cents, up from 5.6 cents in the same period last year. Net asset value per share was $7.45, a slight dip from $7.50 as at Dec 31.
UIC had an even rosier story to report. Its earnings were up 43 per cent in the third quarter at $25.4 million from $17.8 million a year earlier on a 76 per cent surge in revenue to $134.8 million.
The higher revenue was due to stronger sales of residential properties, contributions from the Pan Pacific Singapore Hotel and increased rental income.
UIC named One Amber, the Grand Duchess at St Patrick’s and Northwood as the sites that had contributed $26.5 million to the company’s coffers.
It is bullish about its prospects, noting that with ‘Singapore’s economic growth and positive consumer sentiment, demand for office and retail space and private housing is expected to remain steady’.
Earnings per share stood at 1.8 cents, up from 1.3 cents. Net asset value was $1.78, down from $1.77 as at Dec 31.
Source : Straits Times - 3 Nov 2007
Showing posts with label United Industrial Corporation. Show all posts
Showing posts with label United Industrial Corporation. Show all posts
Monday, November 5, 2007
Friday, November 2, 2007
UIC Ltd is launching its 192-unit Park Natura development across from Bukit Batok Nature Park
UIC Ltd is launching its 192-unit Park Natura development across from Bukit Batok Nature Park, and market watchers will be eager to see how sales will be affected by the US sub-prime mortgage crisis or by the withdrawal of the deferred payment scheme (DPS).
So far, sales look good. Priced at the higher end for a suburban condominium at an average of $1,000 psf, more than 100 units have already been sold at the private soft launch. UIC group general manager Vito Koh said: ‘The demand shows that the pricing is right.’
Mr Koh said he did not have a breakdown of the profile of buyers but added that Park Natura was not the type of development to attract speculators.
UIC received approval to offer deferred payment to buyers before the end of the DPS, but whether this alone is attracting buyers is hard to say.
Still, Mr Koh said that the withdrawal of DPS from future developments could affect buyers’ confidence, especially for HDB upgraders hoping to enter the private property market.
Mr Koh also pointed out that the withdrawal of the DPS has come at a time when prices in the high-end segment appeared to have levelled off. ‘Market prices have already adjusted themselves so withdrawing DPS is not necessary,’ he said.
Another development that was recently launched is the CGH Group’s 72-unit Esta Ruby in the Katong area. Already, 25 per cent of the units have been sold at an average price of $1,160 psf.
CGH sales director Alex Chng said that recent events have affected the property market, with some potential buyers changing their minds. ‘But our feeling is that the buyers are still there.’ The good news seems to be that more foreigners and Singapore permanent residents appear to be buying units in suburban developments.
At Esta Ruby, Mr Chng estimated that 30 to 40 per cent of the buyers were non-Singaporean. ‘What is interesting is that the buyers are mainly from China, Indonesia and even Vietnam,’ he added. The remaining buyers are mainly those displaced by en-bloc sales, with 20 to 30 per cent of buyers being HDB upgraders.
Another development that has been selling through private previews is the 196-unit Aalto in the East Coast by Hong Leong Holdings. Units there are also selling fast with about 60 per cent - about 120 units - sold so far.
A spokesman for Hong Leong also said that transacted prices ranged from $1,500 to more than $2,500, or roughly the transacted prices for new developments in the area even before the US sub-prime mortgage crisis.
Source : Business Times - 1 Nov 2007
So far, sales look good. Priced at the higher end for a suburban condominium at an average of $1,000 psf, more than 100 units have already been sold at the private soft launch. UIC group general manager Vito Koh said: ‘The demand shows that the pricing is right.’
Mr Koh said he did not have a breakdown of the profile of buyers but added that Park Natura was not the type of development to attract speculators.
UIC received approval to offer deferred payment to buyers before the end of the DPS, but whether this alone is attracting buyers is hard to say.
Still, Mr Koh said that the withdrawal of DPS from future developments could affect buyers’ confidence, especially for HDB upgraders hoping to enter the private property market.
Mr Koh also pointed out that the withdrawal of the DPS has come at a time when prices in the high-end segment appeared to have levelled off. ‘Market prices have already adjusted themselves so withdrawing DPS is not necessary,’ he said.
Another development that was recently launched is the CGH Group’s 72-unit Esta Ruby in the Katong area. Already, 25 per cent of the units have been sold at an average price of $1,160 psf.
CGH sales director Alex Chng said that recent events have affected the property market, with some potential buyers changing their minds. ‘But our feeling is that the buyers are still there.’ The good news seems to be that more foreigners and Singapore permanent residents appear to be buying units in suburban developments.
At Esta Ruby, Mr Chng estimated that 30 to 40 per cent of the buyers were non-Singaporean. ‘What is interesting is that the buyers are mainly from China, Indonesia and even Vietnam,’ he added. The remaining buyers are mainly those displaced by en-bloc sales, with 20 to 30 per cent of buyers being HDB upgraders.
Another development that has been selling through private previews is the 196-unit Aalto in the East Coast by Hong Leong Holdings. Units there are also selling fast with about 60 per cent - about 120 units - sold so far.
A spokesman for Hong Leong also said that transacted prices ranged from $1,500 to more than $2,500, or roughly the transacted prices for new developments in the area even before the US sub-prime mortgage crisis.
Source : Business Times - 1 Nov 2007
Thursday, October 11, 2007
$253m for Upper Pickering plot with plan including Soho units.
It bids $253m for Upper Pickering plot with plan including Soho units.
UOL Group subsidiary Hotel Plaza plans to develop small office, home office (Soho) units as well as a 350-400 room hotel on a choice plot at Upper Pickering Street, for which it emerged as the top bidder at a tender yesterday, UOL Group chief operating officer Liam Wee Sin said yesterday.
Hotel Plaza’s top bid of $253.2 million or $805 per square foot of potential gross floor area was 21 per cent higher than the next highest offer of $209 million ($664 psf per plot ratio) from a unit of Park Hotel Group.
The highest of the nine bids at yesterday’s state tender for the hotel site was also at least 40 per cent higher than the prices paid for two hotel sites along Tanjong Pagar Road awarded recently, CB Richard Ellis noted.
Market watchers suggest UOL/Hotel Plaza’s scheme to include Soho units may have given it the edge in outbidding the other contenders at yesterday’s tender. Besides Park Hotel unit Park Plaza, other bidders were:
City Developments’ unit Glades Properties ($201.8 million);
Hiap Hoe Superbowl JV ($185 million);
Hotel Properties’ unit Op Investments ($161.08 million);
Ho Bee Investment & Multi Wealth Singapore ($153.53 million);
Amara Holdings & Garden City Hotel Holdings ($151.89 million);
AAPC Hotels Singapore ($150 million);
and Soilbuild Group Holdings ($128.82 million).
Analysts estimate that UOL/Hotel Plaza’s all-in investment in the project (including land and construction) may be around $400 million. The longish plot, with a frontage of about 200 metres along Upper Pickering Street, is right across the road from Hong Lim Park and diagonally opposite One George Street.
‘We’re likely to build the hotel on the side closer to One George Street while the Soho tower will be on the other stretch of the plot facing Chinatown Point and Furama,’ Mr Liam said yesterday evening when contacted by BT.
‘The Soho tower may be about 16 to 20 storeys high and will have about 120-150 units, mostly studio units of about 60-80 sq metres (646 to 861 sq ft) each. We may sell the Soho units or just decide to keep them for lease.
‘The hotel is likely to be 16 storeys high and will have about 350-400 rooms. Hotel Plaza will most likely flag it as a Parkroyal. In fact, this will be the flagship Parkroyal hotel in Singapore when it is completed around 2011,’ Mr Liam said.
However, hotel industry watchers pointed to the possibility that the group has the option of targeting a higher tier of the market and flagging the new property as a Pan Pacific hotel, since UOL recently bought this brand.
Industry observers said the Upper Pickering Street site is probably one of the choicest plots allowed for hotel development to have been released by Urban Redevelopment Authority in recent years other than the former NCO Club site in Beach Road.
Hotel Plaza owns two other hotels in Singapore - Parkroyal hotels at Beach Road and Kitchener Road - while UOL directly owns 100 per cent of The Negara on Claymore and has an interest of about 30 per cent in Marina Centre Holdings, which has stakes in the Pan Pacific, Oriental and Marina Mandarin hotels here.
Source : Business Times - 11 Oct 2007
UOL Group subsidiary Hotel Plaza plans to develop small office, home office (Soho) units as well as a 350-400 room hotel on a choice plot at Upper Pickering Street, for which it emerged as the top bidder at a tender yesterday, UOL Group chief operating officer Liam Wee Sin said yesterday.
Hotel Plaza’s top bid of $253.2 million or $805 per square foot of potential gross floor area was 21 per cent higher than the next highest offer of $209 million ($664 psf per plot ratio) from a unit of Park Hotel Group.
The highest of the nine bids at yesterday’s state tender for the hotel site was also at least 40 per cent higher than the prices paid for two hotel sites along Tanjong Pagar Road awarded recently, CB Richard Ellis noted.
Market watchers suggest UOL/Hotel Plaza’s scheme to include Soho units may have given it the edge in outbidding the other contenders at yesterday’s tender. Besides Park Hotel unit Park Plaza, other bidders were:
City Developments’ unit Glades Properties ($201.8 million);
Hiap Hoe Superbowl JV ($185 million);
Hotel Properties’ unit Op Investments ($161.08 million);
Ho Bee Investment & Multi Wealth Singapore ($153.53 million);
Amara Holdings & Garden City Hotel Holdings ($151.89 million);
AAPC Hotels Singapore ($150 million);
and Soilbuild Group Holdings ($128.82 million).
Analysts estimate that UOL/Hotel Plaza’s all-in investment in the project (including land and construction) may be around $400 million. The longish plot, with a frontage of about 200 metres along Upper Pickering Street, is right across the road from Hong Lim Park and diagonally opposite One George Street.
‘We’re likely to build the hotel on the side closer to One George Street while the Soho tower will be on the other stretch of the plot facing Chinatown Point and Furama,’ Mr Liam said yesterday evening when contacted by BT.
‘The Soho tower may be about 16 to 20 storeys high and will have about 120-150 units, mostly studio units of about 60-80 sq metres (646 to 861 sq ft) each. We may sell the Soho units or just decide to keep them for lease.
‘The hotel is likely to be 16 storeys high and will have about 350-400 rooms. Hotel Plaza will most likely flag it as a Parkroyal. In fact, this will be the flagship Parkroyal hotel in Singapore when it is completed around 2011,’ Mr Liam said.
However, hotel industry watchers pointed to the possibility that the group has the option of targeting a higher tier of the market and flagging the new property as a Pan Pacific hotel, since UOL recently bought this brand.
Industry observers said the Upper Pickering Street site is probably one of the choicest plots allowed for hotel development to have been released by Urban Redevelopment Authority in recent years other than the former NCO Club site in Beach Road.
Hotel Plaza owns two other hotels in Singapore - Parkroyal hotels at Beach Road and Kitchener Road - while UOL directly owns 100 per cent of The Negara on Claymore and has an interest of about 30 per cent in Marina Centre Holdings, which has stakes in the Pan Pacific, Oriental and Marina Mandarin hotels here.
Source : Business Times - 11 Oct 2007
Sunday, April 15, 2007
United Industrial Corporation
United Industrial Corporation (UIC) yesterday announced it had inked a deal to buy UIC Building at Shenton Way under a collective sale that prices the property at $600 million, or $870 per square foot of potential gross floor area inclusive of development charge and differential premium to top up the site’s lease to 99 years.
The mainboard-listed company said subsidiary proprietors of the building who own at least 80 per cent of share values have accepted UIC’s offer to purchase the property yesterday. The subsidiary proprietors include UIC and its fully owned unit, UIC Development (Pte) Ltd, which together hold 78.8 per cent of share values in the property.
Analysts note the net real acquisition cost to UIC for purchasing the 21.2 per cent of the property that it does not already own works out to about $127 million.
CB Richard Ellis brokered the deal.
The collective sale is subject to approval from the Strata Titles Board and the obtaining of a Qualifying Certificate from the Controller of Residential Property, if applicable.
UIC is said to be planning a twin-tower residential development on the site.
‘But looking at the way office values are shooting up, I wouldn’t be surprised if they changed their minds and redeveloped the site into a new office development instead,’ said a market watcher.
According to a BT report earlier this week which said UIC was poised to buy the rest of the building that it does not already own, the building had attracted three bids - from UIC, City Developments and Wing Tai in an expression of interest exercise which closed on Feb 8.
Analysts reckon that UIC would be in a better position to pay a higher price to the other owners as, unlike rival developers, its outlay will be lower since it already owns 78.8 per cent of the building.
Under Master Plan 2003, the 72,960 sq ft site is zoned for commercial use with an 11.2+ plot ratio and qualifies for a 10 per cent bonus plot ratio. The plot has a 35-storey height limit.
The maximum potential gross floor area of the site works out to 898,867 sq ft inclusive of the bonus plot ratio.
A full-residential redevelopment scheme could result in about 600 units averaging 1,500 sq ft being built on the site, or 750 apartments assuming a smaller average unit size of 1,200 sq ft.
Of course, any redevelopment scheme will have to be approved by the authorities.
Source: The Business Times, 14 April 2007
The mainboard-listed company said subsidiary proprietors of the building who own at least 80 per cent of share values have accepted UIC’s offer to purchase the property yesterday. The subsidiary proprietors include UIC and its fully owned unit, UIC Development (Pte) Ltd, which together hold 78.8 per cent of share values in the property.
Analysts note the net real acquisition cost to UIC for purchasing the 21.2 per cent of the property that it does not already own works out to about $127 million.
CB Richard Ellis brokered the deal.
The collective sale is subject to approval from the Strata Titles Board and the obtaining of a Qualifying Certificate from the Controller of Residential Property, if applicable.
UIC is said to be planning a twin-tower residential development on the site.
‘But looking at the way office values are shooting up, I wouldn’t be surprised if they changed their minds and redeveloped the site into a new office development instead,’ said a market watcher.
According to a BT report earlier this week which said UIC was poised to buy the rest of the building that it does not already own, the building had attracted three bids - from UIC, City Developments and Wing Tai in an expression of interest exercise which closed on Feb 8.
Analysts reckon that UIC would be in a better position to pay a higher price to the other owners as, unlike rival developers, its outlay will be lower since it already owns 78.8 per cent of the building.
Under Master Plan 2003, the 72,960 sq ft site is zoned for commercial use with an 11.2+ plot ratio and qualifies for a 10 per cent bonus plot ratio. The plot has a 35-storey height limit.
The maximum potential gross floor area of the site works out to 898,867 sq ft inclusive of the bonus plot ratio.
A full-residential redevelopment scheme could result in about 600 units averaging 1,500 sq ft being built on the site, or 750 apartments assuming a smaller average unit size of 1,200 sq ft.
Of course, any redevelopment scheme will have to be approved by the authorities.
Source: The Business Times, 14 April 2007
Tuesday, April 10, 2007
United Industrial Corporation
Mainboard-listed United Industrial Corporation is poised to buy the remaining 21 per cent of UIC Building that it does not already own under a collective sale that could value the ageing leasehold Shenton Way office block at about $630 million, say market watchers.
This pricing works out to about $900 psf of potential gross floor area inclusive of a total of around $180 million payable to the state for development charges and upgrading the site’s lease to 99 years from the current remaining term of about 61 years.
UIC Building, which is being marketed by CB Richard Ellis, is understood to have earlier attracted three bids - from City Developments, Wing Tai and UIC itself - in an expression of interest exercise which closed on Feb 8.
Analysts reckon that UIC would be in a better position to pay a higher price to the other owners as, unlike rival developers, its outlay will be lower since it already owns 78.8 per cent of the building. UIC is controlled by Singapore’s Wee Cho Yaw and Philippine tycoon John Gokongwei.
‘For UIC to be in talks with other owners to buy the building through a collective sale, its latest offer must be higher than the top price indication achieved during the expression of interest,’ said a real estate market watcher.
‘And as UIC already owns 78.8 per cent of share values in the development, it’s probably going about the collective sale carefully, being mindful of the minority owners and ensuring that the sale process is handled in a transparent way - to minimise hiccups later when an application is made to the Strata Titles Board,’ he added.
Under Master Plan 2003, the 72,960 sq ft site is zoned for commercial use with an 11.2+ plot ratio and qualifies for a 10 per cent bonus plot ratio. The site has a 35-storey height limit. The maximum potential gross floor area works out to 898,867 sq ft inclusive of the bonus plot ratio.
Despite the current shortage of office supply on the island, market watchers reckon the best and highest redevelopment use for the UIC Building site would probably still be residential, rather than office.
This is because a residential development will be able to achieve a higher efficiency (ratio of net saleable area to gross floor area) and lower construction/ interest costs.
Any redevelopment will be subject to approval from the authorities, including the Urban Redevelopment Authority.
A full-residential redevelopment scheme could result in about 600 units averaging 1,500 sq ft being built on the site, or 750 apartments assuming a smaller average unit size of 1,200 sq ft.
Property consultants reckon a realistic selling price to assume for a new condo project on the UIC site, given the substantial number of units involved and the fact that the site is not next to the popular Marina Bay, could be about $1,500 psf on average.
Factoring in profit margins for the developer and rising construction costs, the land price works out to about $900 psf of potential gross floor area.
When an expression of interest exercise was conducted in late December, the asking price bandied was ‘over $830 million’. However, this was probably the price agreed with the sales committee based on owners’ expectations of a price of $2,000 psf for their respective existing strata areas in the building (the building has about 415,000 sq ft existing strata area) - rather than an evaluation of what price the market can support for a redevelopment scheme.
Source: The Business Times, 10 April 2007
This pricing works out to about $900 psf of potential gross floor area inclusive of a total of around $180 million payable to the state for development charges and upgrading the site’s lease to 99 years from the current remaining term of about 61 years.
UIC Building, which is being marketed by CB Richard Ellis, is understood to have earlier attracted three bids - from City Developments, Wing Tai and UIC itself - in an expression of interest exercise which closed on Feb 8.
Analysts reckon that UIC would be in a better position to pay a higher price to the other owners as, unlike rival developers, its outlay will be lower since it already owns 78.8 per cent of the building. UIC is controlled by Singapore’s Wee Cho Yaw and Philippine tycoon John Gokongwei.
‘For UIC to be in talks with other owners to buy the building through a collective sale, its latest offer must be higher than the top price indication achieved during the expression of interest,’ said a real estate market watcher.
‘And as UIC already owns 78.8 per cent of share values in the development, it’s probably going about the collective sale carefully, being mindful of the minority owners and ensuring that the sale process is handled in a transparent way - to minimise hiccups later when an application is made to the Strata Titles Board,’ he added.
Under Master Plan 2003, the 72,960 sq ft site is zoned for commercial use with an 11.2+ plot ratio and qualifies for a 10 per cent bonus plot ratio. The site has a 35-storey height limit. The maximum potential gross floor area works out to 898,867 sq ft inclusive of the bonus plot ratio.
Despite the current shortage of office supply on the island, market watchers reckon the best and highest redevelopment use for the UIC Building site would probably still be residential, rather than office.
This is because a residential development will be able to achieve a higher efficiency (ratio of net saleable area to gross floor area) and lower construction/ interest costs.
Any redevelopment will be subject to approval from the authorities, including the Urban Redevelopment Authority.
A full-residential redevelopment scheme could result in about 600 units averaging 1,500 sq ft being built on the site, or 750 apartments assuming a smaller average unit size of 1,200 sq ft.
Property consultants reckon a realistic selling price to assume for a new condo project on the UIC site, given the substantial number of units involved and the fact that the site is not next to the popular Marina Bay, could be about $1,500 psf on average.
Factoring in profit margins for the developer and rising construction costs, the land price works out to about $900 psf of potential gross floor area.
When an expression of interest exercise was conducted in late December, the asking price bandied was ‘over $830 million’. However, this was probably the price agreed with the sales committee based on owners’ expectations of a price of $2,000 psf for their respective existing strata areas in the building (the building has about 415,000 sq ft existing strata area) - rather than an evaluation of what price the market can support for a redevelopment scheme.
Source: The Business Times, 10 April 2007
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