Written by Amy Tan
Monday, 07 October 2013 17:03
Koh Wee Meng, founder andchairman of property developer Fragrance Group, has been building up his direct stakes in his property and hotel businesses. On Sept 27, Koh acquired 1.5 million shares of Fragrance at 22.5 cents each. That purchase raises his final direct shareholdings to 4.94 billion shares, or 73.6% of the company. Together with his wife, Lim Wan Looi, he owns 84.5% of Fragrance.
Koh, as non-executive director of Global Premium Hotels, also saw his deemed stake in the hotel operator rise to 52.3% after his wife purchased 1.8 million shares at 25 cents each on Sept 27 and 30. Koh’s direct interest in Global Premium Hotel stands at 58 million shares, or 5.5% of the company.
In April 2012, Fragrance listed its hotel arm under Global Premium Hotels to operate 22 hotels under the Fragrance brand and one hotel under the Parc Sovereign brand while retaining a majority stake in the newly listed entity. Following the successful listing, Koh became Forbes’ 17th-richest man in Singapore, with a reported net worth of $1.3 billion.
On Aug 2, Fragrance reported a 57.9% rise in 2QFY2013 ended June earnings to $34.4 million from a year ago. The group recorded a turnover of $152.39 million in 2QFY2013, a 48.6% increase from $102.55 million a year ago. The property sector contributed $137.01 million, or 89.9% of the consolidated revenue. This is an increase of 56.9% from the $87.32 million contribution in 2Q2012. The main contributor to revenue during this period was the progressive recognition of income from development projects such as Parc Rosewood and Urban Vista.
Global Premium Hotels, which also reported its 2QFY2013 ended June results on the same day, saw a 36.2% increase in earnings to $4.89 million. The group recorded revenue of $15.37 million, a 1% increase from $15.22 million in 2QFY2012.
Meanwhile, Oxley Holdings, the property developer, saw Low See Ching, its non-executive director, purchase 577,000 shares on three occasions between Sept 23 and 26 at 36.5 cents each. The transactions raised his direct shareholdings to 230.9 million shares, or 7.83% of the company. His deemed interest remains at 51%.
For FY2013 ended June, Oxley said earnings more than quadrupled to $69.1 million from $16.9 million a year ago. The increase came on the back of a 187% rise in revenue to $457.7 million, from $159.4 million a year ago. For 4QFY2013, the group reported earnings of $37.6 million on revenue of $282.9 million compared with earnings of $1.7 million on revenue of $37.9 million in 4QFY2012.
The surge in FY2013 performance was mainly driven by revenue recognition on construction progress made in 13 of the group’s mixed-residential projects as well as revenue recognition from the completion of two industrial developments: Arcsphere and Oxley Bizhub 2. Of the 13 mixed-residential projects, Suites@Katong, Loft@ Rangoon and Loft@Stevens obtained their Temporary Occupation Perming during the financial year.
Oxley has launched three more developments since the beginning of FY2014: The Flow, Floraville@Cactus Road and Eco-tech@Sunview. The group is also exploring ways to maximise the plot potential of its Malaysian and Cambodian land parcels. It has five projects, yet to be launched, at Joo Chiat and on Oxley Rise, Stevens Road, Cactus Road and Tampines Industrial Crescent.
Publish date: 07/10/13