Luxury real estate developer Wheelock Properties (Singapore) saw a 3.9 percent increase in its net profit to S$52.3 million in the first quarter this year.
However, group revenue fell 3.6 percent to S$103 million, attributed to the marginal decline in revenue upon the completion of its Ardmore II project in Q2 last year. This was also offset by revenue recognition from its Scotts Square project and the sales of three units at Orchard View.
The company’s gross profit for the quarter rose 7.5 percent to S$67 million, mainly attributed to higher profit margins for the Scotts Square project, while its gross profit margin increased to 65 percent, from 59 percent a year ago.
Meanwhile, the group placed the highest bid for five sites in Fuyang City, a county adjacent to Hangzhou in China, for 1.44 billion yuan (S$273 million) in February this year.
“I am pleased with the group’s performance this quarter and especially with the acquisition of the five sites in Fuyang City. The acquisition is scheduled to complete in early 2012, after which construction is expected to start in the second half of 2012,” said David Lawrence, Chief Executive of Wheelock.
It said that 55 percent of the progress billings at the Scotts Square development has been fully collected and the group expects to achieve 85 percent in H2 2011, when the project acquires temporary occupation permit (TOP).
“The group’s revenue and earnings will be boosted this year by remaining profits on sold units at Scotts Square, while 100 percent of profits will also be recognised on any additional units sold at Orchard View and Scotts Square,” it said.
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