REUTERS - Singapore property and hotel firm City Developments posted a 48 per cent rise in second quarter net profit on Tuesday after gains from asset sales offset lower contributions from hotels.

CityDev earned $203.8 million in the three months ended June, up from $137.7 million a year ago.

The developer said its rental properties business was the lead contributor to earnings largely due to the gains recognised from the disposal of 100G Pasir Panjang, a property in western Singapore.

CityDev also declared a special interim dividend of 8 cents per ordinary share.

CityDev's hospitality arm Millennium & Copthorne Hotels last week reported a 27 per cent fall in pretax profit and said the outlook for its Asian operations was weak because of economic uncertainty, greater hotel capacity and increasing costs, particularly in Singapore.