Perennial Real Estate Holdings reported yesterday that its second-quarter net profit jumped to $17.1 million from $594,000 a year ago on a fair value gain of $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 $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.
In Singapore, Perennial said major enhancement works are progressing at TripleOne Somerset and AXA Tower. It added that total strata sales to-date at TripleOne Somerset increased to about $21.6 million, with a number of strata office units transacted at an average price of about $2,788 per sq ft (psf).
AT A GLANCE
Q2 REVENUE: $17.9 million (-25.9%)
Q2 NET PROFIT: $17.1 million (comparisons not meaningful)
Total strata sales at AXA Tower amounted to about $41 million, with a number of strata office units transacted at an average price of about $2,559 psf. Units on the low-zone and mid-zone were transacted at about $2,450 psf and close to $3,000 psf respectively.
Perennial and Chinese developer Yanlord Land Group have made a bid for century-old Singapore property group United Engineers Ltd (UEL). Last month, it acquired OCBC'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.
Earnings per share rose to 1.03 cents for the quarter compared with 0.04 cent a year earlier. Net asset value declined to $1.622 from $1.631 as at Dec 31.