Singapore, Jan 15, 2026, 16:10 SGT — Regular session.
- UOL shares climbed roughly 2% in late Thursday trading
- A consortium secured a S$1.50 billion government tender for a mixed-use site in Singapore
- Attention turns to financing, project schedules, and expected returns on a major construction effort
Shares of UOL Group Limited climbed Thursday following news that a consortium including the property and hotel firm secured a S$1.50 billion ($1.17 billion) government tender for a significant integrated residential and commercial development in Singapore. By 3:59 p.m. SGT, the stock had gained roughly 2.1% to S$9.92, with trading volume at about 2.25 million shares, per the company’s website. 1
The win is crucial since fresh land fuels Singapore developers, and major government land tenders can reshape a company’s pipeline for years. Investors remain wary of land prices as borrowing costs stay above the post-pandemic lows, while projects drag out before generating cash.
For UOL, it also throws their financing into sharper focus. Big mixed-use developments usually mean hefty milestone payments and tighter deadlines, and investors often price in the risk well before construction wraps up.
The site spans 46,899.4 square metres under a 99-year leasehold and will connect directly to an MRT station, bus interchange, and town plaza, The Edge Singapore reported. According to the report, UOL holds a 30% effective stake in the residential project, while CapitaLand Development owns 50%. The tender terms require 25% of the price to be paid within 28 days of award, with the remaining balance due within 90 days.
A separate report, referencing a bourse filing, noted that CapitaLand Integrated Commercial Trust anticipates an “expected yield on cost” exceeding 5% for the commercial segment — a metric showing annual rental return relative to total development cost. “This move strengthens CICT’s portfolio exposure in Singapore, aligning with our value creation strategy and maintaining a Singapore-centric focus,” said Tan Choon Siang, CEO of the trust manager. 2
UOL, a Singapore-listed property and hospitality company, reports total assets around S$23 billion. Its business covers development and investment properties, alongside hotels and serviced suites. The firm’s Pan Pacific Hotels Group manages or owns over 40 hotels and serviced suites operating under the Pan Pacific and PARKROYAL brands, according to its website. 3
All eyes are on how the consortium plans to finance the construction and if UOL can maintain its current leverage levels. Gearing—debt in relation to assets—often becomes a key stress factor for developers as land prices climb and capital gets locked in upfront.
But large mixed-use projects can easily run into trouble. A cooling new-home market, rising construction costs, or holdups in approvals and schedules can all pinch returns. On top of that, persistently high interest rates would boost the expense of carrying land and debt.
The upcoming key dates are the payment milestones. With the 28-day and 90-day windows outlined in the tender, the initial major payout is set for about Feb. 11, followed by the last payment near April 14. Investors will be watching closely for any updates on project timelines and funding.
