UOL Group has announced that its net profit for the full year ended 31 December 2010 jumped 76 percent, while its revenue climbed 29 percent to S$1.29 billion.
The growth in revenue was attributed to the progressive recognition of revenue from the sale of development properties.
The group’s earnings were further boosted by a S$152.9 million fair-value gain on investment properties of associated companies and a S$134.9 million fair-value gain on investment properties.
Overall, net profit attributable to equity holders reached S$745.8 million in 2010, up 76 percent from the previous year. Excluding fair-value gains and other gains, attributable profit would have jumped 29 percent to S$429 million.
The group is now planning to build a retail-focused development at two sites in Tanjong Katong.
It is also planning to replenish its residential land bank in Singapore this year, considering that it only has a remaining 60 units. The group will also not rule out bidding for executive condominium (EC) sites, said Liam Wee Sin, President (property) of UOL.
In January, the group acquired Lion City Hotel and the adjacent former Hollywood Theatre site. Mr. Liam said the group could combine these sites for a retail development with or without a residential component. UOL is seeking regulatory approval for its plans, he added.
Mr. Liam observed that the property cooling measures announced by the government have calmed the home buying frenzy. “We expect volumes to come down, but for new launches, we see that prices are still stable. There is still good sustainable demand in the market,” he said.