SINGAPORE - Perennial Real Estate Holdings said on Tuesday (Aug 8) that its second-quarter net profit jumped 96 per cent to S$17.1 million from S$594,000 a year ago on a fair value gain of S$16.6 million.
This gain came from the revaluation of Xi'an North High Speed Railway Integrated Development Plot 4. The property was reclassified as an "investment property" after a strategic review to hold it for long-term investment and to lease the various components within the integrated development for rental. Talks are currently underway to lease out the hotel component, said the company.
Revenue for the three months to end June fell 25.9 per cent to S$17.9 million, largely due to lower project management fees as well as the absence of revenue from TripleOne Somerset as a result of the deconsolidation following the divestment of a 20.2 per cent equity stake on March 31.
This was partially offset by a one-off divestment fee received in respect of TripleOne Somerset.
No dividend was declared for the quarter.
Perennial with Chinese developer Yanlord Land Group has made a bid for century-old Singapore property group United Engineers Ltd. Last month, it acquired Oversea-Chinese Banking Corp's 33.5 per cent stake in UEL, triggering a mandatory general offer for the company that will close on Aug 29.
The consortium also acquired a 10 per cent stake in UEL subsidiary, WBL Corporation.