Its development property division contributed $7.2 million in revenue, due to the completion of certain OUE Twin Peaks units sold under deferred payment schemes.
Mainboard-listed OUE’s profit for the first quarter of 2019 increased 0.3 percent year-on-year to $1 million, while revenue rose 1.2 percent year-on-year to $147.3 million.
In an SGX filing, the property developer attributed the hike mainly to “higher contributions from the group’s investment properties and development property divisions, offset partially by lower contributions from the hospitality and healthcare divisions”.
Its investment properties division saw revenue climb 2.8 percent to $71.5 million, mainly due to higher occupancy at US Bank Tower.
Its development property division contributed $7.2 million in revenue, due to the completion of certain OUE Twin Peaks units sold under deferred payment schemes.
Meanwhile, revenue from its hospitality division fell by $2.6 million to $56.3 million due “to lower room revenue and banquet sales from Mandarin Orchard Singapore, partially mitigated by higher contribution from Oakwood Premier OUE Singapore, the serviced residences at OUE Downtown”.
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The drop in revenue at its healthcare division, on the other hand, was due to lower revenue recognition from its China operations.
Nonetheless, the group’s healthcare division, OUE Lippo Healthcare (OUELH), completed its maiden venture in Myanmar with the acquisition of a medical centre, two clinics and three hospitals.
The move is part of the group’s strategy of expanding its pan-Asia healthcare network.
“As part of the Group’s efforts to further scale up its businesses, OUE expanded into the Food & Beverage and Lifestyle business with the acquisition of a 49.7 percent stake in Superfood Retail Limited, which owns and operates cafes and restaurants in Singapore and Hong Kong. The acquisition is a complementary fit with OUE’s current food & beverage portfolio and will provide the Group with an immediate footprint in these markets and access to an experienced F&B team,” said the company.
In April 2019, OUE also sold its minority stakes in Marina Mandarin Singapore as well as the Marina Square retail and commercial complex for a total amount of $390 million.
“The divestments allow OUE to unlock the value of its investments, while proceeds from the divestments will position the group to seize new opportunities.”
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Fiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email fiona@propertyguru.com.sg
