UOL eyes two residential launches over the next two years

Current projects enjoy healthy take-up rates.

UOL group is targeting to launch two new developments in Clementi and Potong Pasir in 2017/18 which are expected to boost earnings moving forward, notes OCBC Investment Research.

The Clement Canopy is a 505-unit development in Clementi in which the group holds a 50% stake in and is likely to be launched in 1Q17.

Raintree Gardens in Potong Pasir, which UOL recently acquired through an enbloc tender with JV partner UIC Ltd, would also be redeveloped into a 750-unit condominium to be launched in 2018.

Previously launched domestic projects, the 663-unit Principal Garden, 797-unit Botanique at Bartley and 555-unit Riverbank@Fernvale, are 43%, 96% and 78% sold, respectively.

UOL's three projects attained TOP in Sep 2015 and May 2016, respectively.

That said, group revenue for the quarter increased 11% YoY to S$393m as it saw broadly higher topline contributions across UOL’s property development, hotels and property investments segments.

In OCBC Investment Research notes that in particular, property development revenues increased 19% YoY to S$207m due to higher progressive revenue recognition from
Riverbank@Fernvale, Botanique at Bartley and Principal Garden.