HSBC, the sole tenant of the HSBC Building at 21 Collyer Quay, has signed a one-year lease extension with landlord CapitaLand Commercial Trust (CCT). The total rent payable by HSBC for the extended term from April 30 next year is $27.7 million, CCT said yesterday.
HSBC is one of CCT's top 10 tenants, contributing about 4 per cent to CCT's monthly gross rental income as of June 30.
CCT is evaluating options for the property after April 2020, which include refurbishment and reletting, redevelopment and divestment. It will share more information when the plans are finalised, it said.
HSBC Building is a 21-storey office tower with a leasehold estate expiring on Dec 18, 2849, and a valuation of $461 million as of June 30.
Low Keng Huat
Higher profits from its development segment, offset by lower profits at its investment segment, lifted results for Low Keng Huat in the second quarter.
The property developer's net profit jumped more than eightfold to $4.2 million from the previous year, it said yesterday.
For the three months ended July 31, revenue leapt 472 per cent to $77.9 million from the previous year. The revenue growth was due to a jump in development revenue to $69.4 million, compared with just $3.6 million in the same period a year ago. The increase was due to sales from Kismis Residences in the first half, it said.
Kismis Residences is a 31-unit freehold landed project in the enclave of Lorong Kismis and Eng Kong Park off Upper Bukit Timah Road. It obtained its temporary occupation permit in May and was fully sold by June.
Revenue from Low Keng Huat's hotel segment fell in the second quarter, mainly due to lower room rates and lower occupancy in Duxton Hotel Perth and the closure of food and beverage outlets.
Investment revenue stayed flat for the quarter, but earnings from the investment segment fell, partly due to a gain on disposal of long-term equity investment in the first half of the previous year.
Wastewater treatment firm SIIC Environment has said it will develop a sewage treatment project in Beihai City, a project valued at 578 million yuan (S$116 million). It will partner BOSCI Investment Company to jointly develop the project - comprising two main plants - that holds a concession period of 30 years. The project has a design treatment capacity of 200,000 tonnes per day.