The offer earlier this year for United Engineers (UEL) significantly boosted third-quarter net profit at real estate and healthcare company Perennial Real Estate Holdings.
Earnings climbed to $16.9 million in the three months to Sept 30 from $425,000 the year earlier.
It said this was due mainly to the group's effective share of results from associate company Yanlord Perennial Investment (YPI), which had launched an offer for UEL shares and closed the offer in September with a stake of 33.5 per cent in UEL.
The share of results from YPI included a gain arising from its acquisition of shares in UEL, which has residential and mixed-use projects in China, and a portfolio of office buildings, business parks, malls, hospitality assets and mixed-use developments in Singapore.
Revenue slumped 42 per cent year on year to $20.4 million, due mainly to the absence of revenue from TripleOne Somerset.
The firm had divested 20.2 per cent of TripleOne Somerset in March, leading to it being accounted for as an associate company and deconsolidated from the group.
The decrease in revenue was partially offset by higher management business income that came mainly from one-off consultancy fees earned from the UEL transaction.
AT A GLANCE
REVENUE: $20.4 million (-42%)
NET PROFIT: $16.9 million (change not meaningful)
Earnings per share was 1.02 cents, from 0.03 cent last year.
Perennial said it would continue the strata sales and asset enhancement works of TripleOne Somerset and AXA Tower while seeking opportunities for new investments. It added that it is continuing to explore the collective sale of AXA Tower with "a few interested parties".
It was reported in August that a consortium led by Perennial was considering a collective sale of AXA Tower for at least $1.65 billion.
Perennial also has healthcare assets in China, and the company said that its operational assets, in locations with good connectivity to public transportation systems, "are expected to remain resilient".
Shanghai RST Chinese Medicine Co expanded its operating presence beyond its stronghold in Shanghai with the opening of two new facilities in Zhenjiang.
Zhenjiang Jurong Yixian Eldercare and Retirement Home, with eldercare and medical facilities, has a total of 502 beds, including 92 nursing care beds.
Zhenjiang Yixian Eldercare and Retirement Home houses 308 eldercare beds.
Perennial added that its Perennial International Health and Medical Hub will be progressively opened by the end of the year. The group, through its associated company, Renshoutang, is also actively seeking new sites and strategic alliances to grow its eldercare operations in China.
Perennial shares closed up one cent at 88.5 cents yesterday.