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Group to launch 3 freehold condos this year even as it sees cautious market.

UOL Group, which yesterday posted a 124 per cent jump in group net profit to $758.9 million on the back of $590.5 million in fair value gain on investment properties , is planning to launch three freehold condos this year.

They are the 100-unit Nassim Park Residences, an 88-unit boutique development named Breeze by the East, and a 401-unit condo on the former Green Meadows site along Upper Thomson Road. opposite Peirce Reservoir.

In its outlook for the current year, UOL said: ‘Following the strong price appreciation in 2007 and with the removal of deferred payment scheme and the turmoil in the global financial markets, the residential property market has turned cautious and any price appreciation is expected to be modest.’

However, the group’s hotels should benefit from high occupancy and improved average room rates, it added.

The group also has exposure to the office market through Novena Square, United Square, Odeon Towers and Faber House, which analysts say should provide UOL with upside from positive rental reversions.

UOL also owns Velocity and United Square retail malls.

The group did not list its Q4 performance, but comparing the full-year results with that for the first nine months, net profit for the quarter ended Dec 31, 2007 came to $332.1 million, up 43.3 per cent from the same year-ago period.

On its latest full-year performance, UOL said that even excluding fair value gains and exceptional items, profit surged 72 per cent to $273.2 million. The increase came from higher income from property development, quoted investments, property investments and hotel operations.

‘Operating profit from property development grew by 117 per cent compared to 2006, while operating profit from hotel operations and property investments increased by 45 per cent and 10 per cent respectively,’ UOL said.

Full-year group revenue rose 18 per cent to $709.1 million. UOL said that it benefited from the progressive recognition of revenues from the sale of residential projects like Duchess Residences, Pavilion 11, Southbank, and The Regency at Tiong Bahru.

And despite the exclusion of revenue from Parkroyal on Coleman Street which was sold in December 2006, revenue from hotel operations was higher, due to improved performance of the group’s hotels in Australia, Singapore and Vietnam and the inclusion of revenues from Pan Pacific Orchard (formerly Negara on Claymore) and Pan Pacific Hotels & Resorts Pte Ltd, which were acquired in June 2006 and July 2007 respectively.

UOL’s net asset value per share rose to $4.96 as at Dec 31, 2007 from $3.97 as at end-2006 on the back of capital appreciation of office and retail properties and quoted investments.

UOL’s listed hotel arm Hotel Plaza reported a 26 per cent drop in net earnings for the year ended Dec 31, 2007 to nearly $85 million - due to the absence of exceptional gains from the sale of Parkroyal on Coleman Street, although this was partly offset by better operating performance from the group’s hotels, as well as lower interest expense and the recognition of $49.3 million in fair value gain on investment properties .

Hotel Plaza’s group revenue increased a mere one per cent to $290.2 million, again due to the absence of contribution from Parkroyal on Coleman Street which was divested in late 2006. Hotel Plaza’s Q4 net earnings - based on comparing the full-year and nine-month results - fell 52.1 per cent to $44.8 million.

Hotel Plaza is proposing a five-cent per share (one-tier) first & final dividend. UOL shareholders will receive a 10-cent per share first & final dividend and a five-cent per share special dividend. Both payouts are one tier.

Source : Business Times - 21 Feb 2008

KSH Holdings, a construction, property development and property management group, has secured a $53.5 million contract from Eurochem Corporation Pte Ltd at International Business Park.

With the latest project, the existing order book of the group’s construction business stands at more than $505 million.

The contract to build the 13-storey building with a basement carpark was won by Kim Seng Heng Engineering Construction (Pte) Ltd, the group’s wholly owned subsidiary in Singapore. The building will have a gross floor area of 25,057 sq m.

Construction work is scheduled to start this month and is expected to be completed within 18 months.

Said Choo Chee Onn, executive chairman and managing director of KSH: ‘It is always our strategy to reach out to a new clientele base and maintain a wide job portfolio. Our portfolio spreads across multiple segments, including residential, industrial and commercial sectors. With this new project, we are able to maintain a good mix of building construction projects on hand.’

The project is the first construction contract secured by the group this year. In 2007, the group secured more than $510 million worth of construction contracts which included a mega shopping complex at Tampines Central 1 worth $86 million; a high-profile commercial and hotel development project at Collyer Quay from Hong Kong-listed property developer Sino Land worth about $120 million; industrial developments worth about $30 million; as well as a number of high-end residential developments of about $273 million in value.

Source : Business Times - 12 Feb 2008

PROPERTY group Tuan Sing Holdings yesterday announced an almost doubling of full-year earnings, thanks to the strong Singapore property market, contributions from its Australian hotels and fair value gains from investment properties .

The company chalked up full-year attributable earnings of $151.1 million for the year ended Dec 31, 2007, a 92 per cent leap from 2006’s $78.7 million.

This was despite the previous year’s earnings being boosted by a deconsolidation gain of $37.5 million after Gul Technologies Singapore Ltd became an associate.

Topline revenue dipped 12 per cent to $322.1 million due to a fall in turnover on its industrial services division, SP Corp. However, its property and hospitality turnover hit new highs.

Property generated revenue of $49.8 million against $17.8 million a year ago, thanks to the strong property sales and higher rental income from the group’s investment properties . The segment recorded a profit after tax of $97.8 million, compared to $38.4 million in 2006, much of it from a net gain on the fair valuation of investment properties of $84.6 million in 2007 (compared with $39.6 million in FY2006).

Tuan Sing’s property division’s profit contributed about 64 per cent of the group’s total profit for 2007.

Its Australia-based Grand Hotel Group (GHG) chalked up a profit of $74.8 million, including the group’s share of the fair value gain on GHG’s assets portfolio. After deducting takeover charges, investment costs and provision for deferred tax, Tuan Sing’s investment in GHG generated a net profit of $51.0 million, representing about 34 per cent of the group’s total profit for the year.

Tuan Sing’s retail business, centred around TS Planet Sports Pte Ltd, which owns 60 per cent of golf products distributor Pan-West, recorded a 17 per cent rise in revenue to $63.4 million and a net profit of $1.4 million.

Looking forward, Tuan Sing said the strong FY2007 performance and improved balance sheets would enable it to further broaden its earning bases and position itself to continue with its pursuit to improve future growth and profitability. But it warned of greater uncertainty arising from the US sub-prime woes and the slowdown of the US economy.

Meanwhile, the group is said to be seeking suitable partners to redevelop its prime commercial property centred around Robinson Towers and two adjoining buildings in the Robinson Road-Maxwell Street area.

Together, this ‘island’ of three properties has a total built-up plot ratio of 10 times, comprising a total floor area of some 12,500 sq m, or some 134,000 sq ft. Tuan Sing’s valuation of these properties , done two years ago, was $154 million.

Property insiders reckon that this cluster could be worth well over $300 million in current market conditions.

The latest record high profits boosted its earnings per share to 13.3 cents, from 6.9 cents, while net asset backing per share rose to 38.4 cents from 22.5 cents a year ago.

Annualised return on equity improved to 44 per cent from 36 per cent in FY2006.

Source : Business Times - 6 Feb 2008

CITY Developments Limited (CDL) was yesterday conferred the Green Mark Platinum award by the Building and Construction Authority (BCA) for its luxury residential development, Cliveden at Grange.

The award is for exemplary green projects that achieve 30 per cent energy and water savings. Such projects also need to have environmentally sustainable building practices, and innovative green features.

A joint press statement from CDL and BCA said some 3.5 per cent of Cliveden’s construction cost was invested in the design of its green features.

These green features include the installation of ‘4 Green Ticks’, the highest rating in energy efficiency for air-conditioners and refrigerators, and the use of renewal energy technology. Solar photovoltaic cells are installed to harness solar energy which then power up the lighting in the guardhouse and clubhouse areas.

Cliveden’s green features are expected to achieve savings in energy costs of over $400,000 a year for the entire development, and cut carbon dioxide emission by 1,100 tonnes a year. As a gauge, it takes about 5,000 trees to absorb this amount of carbon emission.

Cliveden’s award is the latest in a string of accolades CDL has received for its environmentally friendly projects.

Just last year, the property developer clinched two Green Mark Platinum awards - one each for The Oceanfront @ Sentosa Cove (residential), and City Square Mall (commercial).

Kwek Leng Joo, CDL’s managing director, yesterday said CDL embarked on its green journey over a decade ago believing that it could make a positive contribution towards the environment. He called for the Green Mark to be made mandatory to help propel Singapore to become an eco-hub in the region.

Source : Business Times - 6 Feb 2008

THE recent plunge in CapitaLand shares and news that the company is offering a convertible bond issue are drawing traders into fresh positions on warrants for South-east Asia’s biggest developer.

CapitaLand shares fared better than other property plays during the recent sub-prime selldown, but they took a beating last week. They plunged 73 cents for the week, ending 10 cents down at $5.80 with 37.3 million units done last Friday.

Mr Ooi Lid Seng, Societe Generale’s (SG’s) vice-president of structured products for Asia excluding Japan, said: ‘The counter has dropped about 12 per cent in the last five trading days.’

One reason was the recent slew of analyst reports urging investors to exercise caution with property stocks. For example, Citigroup cut target prices for CapitaLand and City Developments last week, citing an expected moderation in office and residential prices.

Also last week, CapitaLand announced plans to raise $1.3 billion via a 10-year convertible bond issue. With a conversion price of $8.614, the bond pays a coupon rate of 3.125 per cent a year.

Mr Ooi highlighted a CapitaLand call warrant offered by SG for those who hold a positive view of the company. It has a strike price of $6 and expires on July 14. No trades were done last Friday.

Last Friday, the most active SG CapitaLand contract was a call warrant with an exercise price of $6.22 that lapses on July 7. That contract closed 2.5 cents lower at 21.5 cents with 5.07 million units done.

Another active SG CapitaLand contract was a call warrant that expires on March 10 with a strike price of $6.70. Last Friday, it ended one cent down at two cents with 150,000 units traded.

In Mr Ooi’s view, the short-term outlook for CapitaLand shares is negative. He added: ‘The counter is likely to retest the $5.92 level should it rebound with minor support at $5.40.’

A call warrant lets an investor buy into a stock or index at a preset price over a period of three to nine months.

A put warrant allows an investor to sell the stock or index at a preset price over a fixed period of time.

Source : Straits Times - 4 Feb 2008