Singapore Property | UOL reports a net loss of $82.1 million in the first half of 2020. This loss is attributed to fair value losses on investment properties, which also included retail mall and serviced suites. The figure was a contrast to the $267.7 million net attributed profit registered last year. Removing fair value losses, UOL still accounted for $196.8 million pre-tax profit. This profit was lower by 30% from the $282.8 million put in during the first quarter of 2019.
In June 2020, the investment properties of the group were valued at $11.3 million which is a 2% decline from the value as of December. This decline in value was seen in all segments like the commercial properties and serviced suites of the group. The effect of this was caused by the impact of the pandemic on property investment. In the first six months of 2020, UOL revenue decline by $908.2 million that is 28% of its previous revenue. This was as a result of low input by all segments, but its management services and technologies saw a 32% increase.
The group came out to put the blame on travel restrictions and lockdowns made by the governments across the world, cause of its effect on Hotel operations. The Hotel industry had the biggest decline in revenue in 2020 with hotels in Singapore and Australia having the largest decline.
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Also, revenue from property development saw a decrease from 29% to $379.7 million due to the number of rental rebates put forward to tenants. UOL has also revealed plans to display a new residential project Clavon in the fourth quarter of 2020. A joint venture between UIC and UOL will be at Clementi Avenue 1. The site was purchased for $491.3 million in July 2019; it is a 640 unit project sitting on the Government Land Sales site.
The project is also positioned near Clement MRT station close to The Clement Canopy which is a fully-functional project launched in 2017. UOL Group still believes that there’s still a need to push forward the Additional Buyer’s Stamp Duty deadlines given the impact of the pandemic.