Luxury home developer KOP Limited sinks further into the red

Interior of an apartment in Hamilton Scotts, a 30-storey apartment building on Scotts Road developed by KOP Properties. The developer made a net loss of $4.5 million for the three months to Oct 31, sharply down from its profit of $473,000 the previou
Interior of an apartment in Hamilton Scotts, a 30-storey apartment building on Scotts Road developed by KOP Properties. The developer made a net loss of $4.5 million for the three months to Oct 31, sharply down from its profit of $473,000 the previous year. -- PHOTO: KOP PROPERTIES

SINGAPORE - Luxury condominium developer KOP Limited sank deeper into the red in its second financial quarter, just seven months after completing a $150 million reverse takeover of a struggling Catalist company.

It made a net loss of $4.5 million for the three months to Oct 31, sharply down from its profit of $473,000 the previous year, it told the Singapore Exchange (SGX) on Friday.

This was even worse than the $3 million it lost in its first quarter ended July 31 this year.

Revenue for the second quarter also plunged 41 per cent to $4.1 million from the preceding year.

KOP said in its statement that second-quarter revenue fell mainly because of lower property sales from its real estate development and investment arm. The firm is known for developing upscale condominiums such as Hamilton Scotts in Orchard, whose units boast "sky garages" that let home owners park their cars next to their living rooms.

Its hospitality unit and entertainment division helped to cushion the drop in turnover, it added.

The firm began trading on the Catalist in May this year after its reverse takeover of beleaguered video entertainment company Scorpio East Holdings. It inherited its entertainment division from the former Scorpio East.

It is now pinning its hopes on developing real estate projects with an entertainment or lifestyle component.

One such project is a huge $2.8 billion integrated indoor winter resort in Shanghai called Winterland Shanghai, which it is still in the midst of raising funds for.

Its shares closed flat at 16.2 cents on Friday, giving it a market value of about $143.6 million.