Perennial sees profit of $21 million for six months to December

SINGAPORE - Mainboard-listed Perennial Real Estate Holdings (PREH) announced on Friday a net profit of $20.97 million for the six months ended Dec 31, 2014 and revenue of $21.76 million.

This marked a turnaround from the $2.13 million of net loss incurred from the entertainment businesses of St James Holdings Ltd, which was divested upon completion of Perennial's reverse takeover (RTO) of St James on October 27, 2014.

Excluding the revenue of $6.8 million relating to the entertainment business which was recognised prior to the RTO, Perennial's revenue relating to real estate business for the period from Oct 28 to Dec 31 was $15 million.

Perennial's operational profits come from assets in Singapore and assets held by Perennial China Retail Trust (PCRT), which were consolidated with effect from November 2014.

It now has interests of 20-51 per cent in integrated real estate development projects located in Beijing, Chengdu, Xi'an and Zhuhai in China. Its China portfolio has gross development value of about $13.1 billion and gross floor area of over 36.5 million square feet.

Chengdu East High-Speed Railway Integrated Development Plot D will be the first project in the China portfolio to kick-off strata-sales. The sale of 1,100 commercial apartments and some retail shops will be launched in the second half of this year 2Q 2015.

In Singapore, its stakes range from 1.46 per cent to 51.61 per cent in real estate projects Chijmes, TripleOne Somerset, Capitol Singapore, House of Tan Yeok Nee, Chinatown Point and 112 Katong. Six out of its seven assets in Singapore are in the Central Business District, including the recently announced acquisition of a 31.2 per cent stake in AXA Tower.

The portfolio has gross development value of about $5 billion and gross floor area of over 3.0 million square feet. All assets are operational except Capitol Singapore, which is expected to commence business by June this year.