Frasers Property snags $2.3b in pre-sold revenue for residential projects

The Parc Greenwich EC, targeted to complete in the second half of FY2024, has been fully sold. PHOTO: FRASERS PROPERTY

SINGAPORE (THE BUSINESS TIMES) - Frasers Property has achieved pre-sold revenue of $2.3 billion so far in financial year 2022 for its residential projects across Singapore, Australia, China and Thailand, the real estate group said on Monday (Aug 8) in a business update for the third quarter ended June.

In Singapore, the group said the demand for quality residential developments remains resilient, with sales of launched projects strengthening despite property cooling measures introduced in December 2021.

For the first nine months of FY2022, it has sold 286 units in Singapore, with unrecognised revenue amounting to $0.7 billion as at end June.

The group said it has sold 65.1 per cent of its Riviere units so far, with target completion in the first half of FY2023.

Meanwhile, the Parc Greenwich EC, targeted to complete in the second half of FY2024, has been fully sold.

In Australia, the group said it continued to see active management of sales and settlements amid the rising interest rate and high inflationary environment.

Unrecognised revenue Down Under stood at $1.3 billion as at June 30, with 2,924 contracts on hand, it said.

Frasers Property in December also secured a 2.5 million square foot (sq ft) site in Queensland, which is expected to yield some 2,150 lots, as part of its strategic land banking efforts to support its development pipeline.

The group added that residential properties in Thailand "remain in demand" while residential demand in China continues to stay "robust".

Meanwhile, it said its investment property portfolio is poised for recovery, with continued strong leasing activity in the industrial and logistics sector in Australia, Europe and Thailand.

As borders reopen, the group said it has also increased its presence in key locations and stepped-up marketing and cross-selling activities to tap pent-up corporate stay and travel demand for its hospitality portfolio.

As at end June, Frasers Property's net debt stood at $13.2 billion, down 2.4 per cent from end September 2021.

Its net debt-to-equity ratio has improved by 3.2 percentage points to 70.5 per cent, with a net interest cover of 3 times.

Frasers Property closed flat at $1.04 on Monday, before the announcement.

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